Home › Circulars › RBI/2012-13/505

Fraud Reporting Relief for Banks with RBI-Regulated Subsidiaries

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2012-13/505 · issued 23 May 2013 · ~1 min read
Quick answerParent banks no longer need to submit hard copy FMR-1 reports for frauds at subsidiaries that are independently regulated by RBI and already report frauds to RBI under their own guidelines.
The rule, in the simplest words
How it plays out — a real example

Rahul, a branch operations officer in Indore, works for a bank with an RBI-regulated subsidiary. When a fraud case is detected at the subsidiary, Rahul doesn't need to submit a hard copy FMR-1 report. However, he ensures the subsidiary reports the fraud to RBI independently. Rahul updates the bank's internal records and verifies the subsidiary's compliance with RBI guidelines.

What changed

Previously, banks had to furnish hard copies of FMR-1 reports for all frauds detected at their subsidiaries, affiliates, or joint ventures. Now, if the subsidiary is regulated by RBI and independently required to report frauds to RBI, the parent bank is exempt from submitting the hard copy FMR-1 for those cases.

What it means for you

This reduces duplicate reporting burden for parent banks when their subsidiaries are already under RBI's direct fraud reporting framework. Banks can streamline compliance by relying on the subsidiary's own reporting, but must ensure the subsidiary indeed meets the independent reporting requirement. It does not change the parent's overall fraud monitoring responsibilities.

Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.

What banks were required to do at the time

Who it affects

All Scheduled Commercial Banks (excluding RRBs), All India Financial Institutions, Parent banks with subsidiaries/affiliates/joint ventures regulated by RBI

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

Does this exemption apply to all subsidiaries of a bank?

No, only to those subsidiaries that are regulated by RBI and independently required to report fraud cases to RBI under their own guidelines.

Do we still need to report frauds at unregulated subsidiaries?

Yes, for subsidiaries not regulated by RBI or not independently required to report frauds, the parent bank must continue to furnish hard copy FMR-1 reports as per the original master circular.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #88: DBS.FrMC.BC.No.6/23.04.001/2012-13 — "Frauds - Classification and Reporting" dated May 23, 2013”
📜 Read the original circular — full text as issued by RBI
RBI/2012-13/505 DBS.FrMC.BC.No. 6/23.04.001/2012-13 May 23, 2013 The Chairmen & Chief Executive Officers of all Scheduled Commercial Banks (excluding RRBs) and All India Select Financial Institutions Dear Sir, Frauds – Classification and Reporting Please refer to Para 3.1.3 of circular DBS. FrMC. BC. No. 1/23.04.001/2012-13 dated July 02, 2012 i.e. the Master Circular on 'Frauds – Classification and Reporting' which requires commercial banks to furnish in hard copies the FMR-1 reports in all cases detected at bank’s subsidiaries/affiliates/joint ventures. 2. It has since been decided to partially amend Para 3.1.3 of Master Circular DBS. FrMC. BC. No. 1/23.04.001/2012-13 dated July 02, 2012 on 'Frauds – Classification and Reporting’ by providing that in case the subsidiary of the bank is an entity which is regulated by Reserve Bank of India and is independently required to report the cases of fraud to RBI in terms of guidelines applicable to that subsidiary/affiliate/joint venture, the parent bank need not furnish the hard copy of the FMR-1 statement in respect of fraud cases detected at such subsidiary/affiliate/joint venture. Yours faithfully (R. K. Sharma) General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2012-13/505 · issued 23 May 2013. The plain-English explanation above is BankPulse’s own independent summary.
🧰 Tools — save, print, templates & related
Most relevant forCompliance TeamRCU / Fraud Control UnitInternal AuditSenior Management / BoardBusiness Head / Vertical Head
🛠 Banker’s toolkit — checklists & reply templates →
Related circulars · Supervision
Revised Auditor Remuneration for Public Sector Banks from FY 2006-07RBI Mandates Business Continuity Plans for All BanksOSMOS Returns Filing Deadlines Tightened Effective Quarter Ending June 2005Fraud Classification and Reporting: 2005 Master CircularRevised Annual Reporting for Non-SSI Sick/Weak Units (Effective from period ending March 31, 2006)
Browse all departments →

💬 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.

Loading comments…
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=7993&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.
Public beta — plain-English informational summaries. Always verify against the official RBI source (circular number cited on every page) before making compliance, credit, treasury, audit, or operational decisions. · Join our WhatsApp channel ↗
—