Reserve Bank has asked banks to adopt a proactive approach for reporting of financial frauds. RBI Deputy Governor SS Mundra said delay in reporting of a fraud can have far-reaching implications on the employee conduct and internal governance standards. <br/><br/>He lamented that the gap between the date of occurrence of a fraud and its detection has been steadily widening. Addressing a seminar on Financial Crimes Management in Mumbai yesterday, Mr Mundra said almost 92 percent of financial frauds are loan-related. <br/>'<br/>Noting that many banks continue to have significant gaps in their cyber security architecture, Mr. Mundra said there is a need to appoint a chief information security officer. <br/><br/>Referring to increased adoption of digital technologies, especially in the wake of note ban, RBI Deputy Governor said banks need to be more conscious of security aspects. <br/><br/>Observing that banks react to cyber incidents in a "knee-jerk and ad-hoc manner" jeopardising future probes, Mr. Mundra urged banks to report incidents quickly by sticking to the stipulated 2 to 6 hour window. <br/><br/>He further informed that RBI has come out with a framework on security under which 30 major banks will undergo a detailed `IT examination' this fiscal, while all other lenders will be covered in the next fiscal.<br/>'<br/>