Current · Source: Reserve Bank of India · RBI/2011-12/206 · issued FY 2011-12 · ~2 min read
Quick answerRBI warns NBFCs about a fraud ring using fake bank guarantees with forged signatures and mismatched formats. Beneficiaries include M/s SFT Exports and others. NBFCs must exercise due caution when handling BGs from these entities.
The rule, in the simplest words
RBI says some bad people are making fake bank guarantees (a promise from a bank to pay if a customer doesn't) with fake signatures and wrong numbers.
NBFCs (companies that give loans but are not banks) must check every bank guarantee carefully before trusting it.
Always call the bank that supposedly issued the guarantee to make sure it is real.
Watch out for these names: M/s SFT Exports, Sumsh Infrastructure Pvt Ltd, M/s Tulip and Co, Alka Hotel Pvt Ltd, and their representatives like Mr Shukum Patel.
An NBFC compliance officer in Indore receives a bank guarantee from M/s SFT Exports for a big loan. Remembering the RBI alert, she calls the issuing bank branch directly and learns the signatures are forged and the serial number is wrong. She rejects the guarantee and reports it to RBI, saving her NBFC from a huge loss.
What changed
RBI issued a specific alert on September 27, 2011, detailing a modus operandi where fake bank guarantees were presented for confirmation. The BGs had forged signatures, mismatched serial numbers, and were not issued by the purported bank branches. The circular lists the names of beneficiaries, representatives, and applicants involved.
What it means for you
NBFCs must tighten verification of bank guarantees, especially those from unknown parties or with suspicious formats. This fraud highlights the need for cross-checking with issuing banks and validating signatures. Failure to detect such fakes could lead to financial losses and regulatory scrutiny.
What you must do
Verify all bank guarantees directly with the issuing bank before confirmation.
Cross-check BG formats and serial numbers against known bank standards.
Flag any transactions involving the listed entities: M/s SFT Exports, Sumsh Infrastructure Pvt Ltd, M/s Tulip and Co, Alka Hotel Pvt Ltd, and their representatives.
Train staff on detecting forged signatures and fake documentation.
Report any suspicious BG presentations to RBI immediately.
Who it affects
All Non-Banking Financial Companies (NBFCs), Residuary Non-Banking Companies (RNBCs)
❓ Common questions
What specific fraud does this circular address?
It addresses a scheme where fake bank guarantees, with forged signatures and incorrect serial numbers, were presented for confirmation by individuals and firms not known to the issuing bank.
Which entities are named in the fraud?
Beneficiaries include M/s SFT Exports, Sumsh Infrastructure Pvt Ltd, M/s Tulip and Co, and Alka Hotel Pvt Ltd. Representatives and applicants are also listed in the circular.
What should NBFCs do if they encounter a suspicious BG?
NBFCs should verify the BG with the issuing bank, check format and serial numbers, and report any discrepancies to RBI. They must also avoid dealing with the named entities.
📜 Read the original circular — full text as issued by RBI
RBI/2011-12/206
DNBS(PD).CC. No.245 /03.10.42 /2011-12
September 27 , 2011
All Non Banking Financial Companies /
Residuary Non Banking Companies
Dear Sir,
Attempt to defraud using fake bank guarantee-modus operandi
Instances of fraud have been brought to the notice of the RBI wherein Bank Guarantees (BGs) purportedly issued by a couple of bank branches in favour of different entities were presented for confirmation by other commercial banks/individuals representing some beneficiary firms. The BGs were submitted along with Confirmation Advice /Advice of Acceptance. One of the beneficiaries was the reporting banks customer. The remaining beneficiaries and applicants were neither the customers of the bank nor were they known to the bank branch officials.
A scrutiny of the said BG revealed that these bank guarantees were fake and the signatures of the bank officials appearing on the BG were forged. The bank branches purported to have issued the BGs also confirmed that they had not issued the same. Even the format of the BGs and their serial numbers did not match with that of the bank. The names of the beneficiaries /representative of beneficiaries and applicants of the BGs are as follows:
Beneficiary :
M/s SFT Exports
Sumsh Infrastructure Pvt Ltd
M/s Tulip and Co
Alka Hotel Pvt Ltd
Beneficiary Representative :
Mr Shukum Patel
Shri Shantanu Das
Shri Subhendu Chowdhury
Sri Akash Mitra
Applicant :
M/s Green Apple Infracom Pvt Ltd
J P Enterprise
3. NBFCs are advised to take notice of the above facts in order to exercise due caution while handling cases involving the above mentioned firms/individuals involved in the instant case.
Yours faithfully,
(C.R.Samyuktha)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2011-12/206 · issued FY 2011-12. The plain-English explanation above is BankPulse’s own independent summary.
Example: if you are a Compliance officer at a bank this circular applies to (All Non-Banking Financial Companies (NBFCs), Residuary Non-Banking Companies (RNBCs)), your first concrete step on “Fake Bank Guarantee Fraud Alert for NBFCs” is: “Verify all bank guarantees directly with the issuing bank before confirmation.” (RBI issued this FY 2011-12).
Circular: RBI/2011-12/206 -- Fake Bank Guarantee Fraud Alert for NBFCs
Issued: FY 2011-12
Action required: Verify all bank guarantees directly with the issuing bank before confirmation.
Action required: Cross-check BG formats and serial numbers against known bank standards.
Action required: Flag any transactions involving the listed entities: M/s SFT Exports, Sumsh Infrastructure Pvt Ltd, M/s Tulip and Co, Alka Hotel Pvt Ltd, and their representatives.
Action required: Train staff on detecting forged signatures and fake documentation.
Action required: Report any suspicious BG presentations to RBI immediately.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=6738&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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