The Reserve Bank of India has issued Master Direction for Monitoring of Frauds in NBFCs (Reserve Bank) Directions, 2016. These Directions shall apply to all deposit taking Non-Banking Financial Companies and systemically important non-deposit taking Non-Banking Financial Companies. The Direction provides provision for Classification of Frauds, Reporting of Frauds to Reserve Bank of India, Quarterly Returns, Reports to the Board, Guidelines for Reporting Frauds to Police and Repeal Provisions.

These Directions shall come into force with immediate effect.