Expressing concern over increasing incidence of frauds in banks, particularly in housing and mortgage loans, the RBI asked CEO-chaired special committees in the banks to be proactive in investigating and monitoring these irregularities.In a notification the RBI said it is a matter of concern that instances of frauds in the traditional areas of banking such as cashcredit, export finance, guarantees, letters of credit also remain unabated.The apex bank said the Board for Financial Supervision (BFS) has expressed grave concern that fraudsters with the involvement of bank officials could engineer system wide break down of controls across months while putting through fraudulent transactions. The RBI said the Board has observed that in terms of higher governance standards, the fraud risk management and fraud investigation function must be handled by the bank's CEO, its Audit Committee of the Board and the Special Committee of the Board, at least in respect of high value frauds. The Reserve Bank of India performs supervisory function under the guidance of the Board for Financial Supervision (BFS). The Board was constituted in November 1994 as a committee of the Central Board of Directors of the central bank.