Providing individuals a means to report suspicious activity is a critical part of an anti-fraud program. Towards this end, a system of protected disclosure scheme has been evolved which is regulated by CVC in case of public sector banks and RBI in case of private and foreign banks.
Reserve Bank has also advised private and foreign banks operating in India to upgrade their internal vigilance mechanism to the same level as is applicable in case of public sector banks in terms of CVC guidelines in the matter. 27. Information sharing is a vital fraud prevention and alert mechanism.