"One area that has come into sharper focus in the last couple of years is the control and management of internal accounts. We found certain banks having lakhs of such accounts with apparently no valid reason," RBI Deputy Governor Swaminathan J said on Tuesday in his address to lenders, represented by chief financial officers (CFOs) and auditors.
"Some of these accounts are used for fraudulent transactions and ever-greening of loans. Internal accounts are high-risk in nature on account of its potential for misuse," he said while asking the CFOs to rationalise those accounts and bring them down to the essential minimum.
Last week RBI Governor Shaktikanta Das, during his interaction with bank chiefs, had raised the issue of mule accounts (illegal accounts) and asked them to curb digital frauds.
Swaminathan said CFOs must protect the integrity of the financial reporting by guarding against misadventure, or intelligent interpretations of regulations or accounting standards.
This story is from the July 10, 2024 edition of Business Standard.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the July 10, 2024 edition of Business Standard.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
![FEF and Dharmatic Entertainment Collaboration Unveiled at the 3rd FEF Annual Gala](https://reseuro.magzter.com/100x125/articles/18959/1826697/cQsG7yGvY1725915816940/FEF-AND-DHARMATIC-ENTERTAINMENT-COLLABORATION-UNVEILED-AT-THE-3RD-FEF-ANNUAL-GALA.jpg)
FEF and Dharmatic Entertainment Collaboration Unveiled at the 3rd FEF Annual Gala
The Fashion Entrepreneur Fund (FEF) and Dharmatic Entertainment Pvt.Ltd., the digital content arm of Dharma Productions, announced an exciting new alliance during the 3rd FEF Annual Gala on September 05.
![Guindy Race Course jockeys for survival](https://reseuro.magzter.com/100x125/articles/18959/1826697/Ji7f34o13GMsm3uccbGsys/GUINDY-RACE-COURSE-JOCKEYS-FOR-SURVIVAL.jpg)
Guindy Race Course jockeys for survival
The hearts of horse racing enthusiasts across India have been racing since Monday morning after Tamil Nadu's revenue department sealed the Madras Race Club in Guindy, the country's oldest horse racing venue.
![Raj Kapoor's restored Awara to musings from Manipur](https://reseuro.magzter.com/100x125/articles/18959/1826697/FWLYmvVENxY0oJWPCswsys/RAJ-KAPOORS-RESTORED-AWARA-TO-MUSINGS-FROM-MANIPUR.jpg)
Raj Kapoor's restored Awara to musings from Manipur
World premiere to include Indian film Superboys of Malegaon on the life of auteur Nasir Shaikh
Smart choice: Consider interest rate, collateral, and co-signer
The number of Indian students pursuing higher education abroad doubled between 201920 and 2023-24, according to a recent report by CRISIL Ratings.
![Brokerages bullish on Bajaj Housing Finance](https://reseuro.magzter.com/100x125/articles/18959/1826697/Tiz5Q04UXbKqXDmAnxdsys/BROKERAGES-BULLISH-ON-BAJAJ-HOUSING-FINANCE.jpg)
Brokerages bullish on Bajaj Housing Finance
BHFL's ₹6,560 cr IPO opened for subscription on Monday
![Market buoyancy spurs IPO rush](https://reseuro.magzter.com/100x125/articles/18959/1826697/lpBGQVm4P1725915247492/MARKET-BUOYANCY-SPURS-IPO-RUSH.jpg)
Market buoyancy spurs IPO rush
Since July over three dozen companies from diverse sectors have filed their DRHPs
Ather Energy looks to raise ₹3,100 cr
Electric two-wheeler (e2W) maker Ather Energy has submitted preliminary papers to the Securities and Exchange Board of India to raise funds through an initial public offering (IPO).
Linde India seeks SAT relief on valuation diktat
Industrial gases and engineering firm Linde India has sought relief from the Securities Appellate Tribunal regarding the valuation diktat stated in an order passed by the Securities and Exchange Board of India (Sebi).
![FVCIs now get FPIs' governance playbook](https://reseuro.magzter.com/100x125/articles/18959/1826697/OAsCWO52smbordCNtrhsys/FVCIS-NOW-GET-FPIS-GOVERNANCE-PLAYBOOK.jpg)
FVCIs now get FPIs' governance playbook
Sebi mandates disclosure of beneficial ownership, allocates registration and monitoring responsibilities to DDPS
Growth recovery, higher margins to drive gains for IT companies
In previews of Q2FY25 and beyond, industry analysts are expecting a turnaround for IT services.