Last updated: 01 April 2024
Approved by Board of Directors · Ashiana Fincap Private Limited
1. Objective
To establish a clear framework for the prevention, early detection, investigation, and reporting of fraud, in compliance with RBI Master Directions on Frauds.
2. Definition of Fraud
Fraud includes misrepresentation in loan applications, identity fraud, document forgery, diversion of loan proceeds, and collusion with employees.
3. Prevention Measures
- Mandatory verification of all borrower-submitted documents through official sources.
- Aadhaar-based e-KYC for identity verification.
- Bureau checks with all four credit bureaus.
- Maker-checker principle for loan sanction and disbursement.
- Employee background checks at time of hiring.
4. Detection and Reporting
- Suspected fraud is immediately reported to the Fraud Risk Management Committee.
- Fraud above RBI-specified thresholds is reported to RBI within the prescribed time.
- FIR is filed with police for confirmed fraud cases.
5. Recovery
All legal remedies available under SARFAESI, IBC, PMLA, and CrPC will be pursued for recovery of defrauded amounts.