Banking and monetary regulator Reserve Bank of India has asked some banks to give a detailed account of their wealth management portfolios following the massive scam unfolded in Citibank.

The selected banks have been directed by the apex bank to give an account of the policy followed by them, procedures adopted along with the total size of the wealth management business.

"It all boils down to the principal-agent relationship. Although the company's name is mentioned, it's the relationship manager who will take the decision. It all depends on the sort of decisions that he or she can take without your consent," said Jayant Pai, vice-president with Parag Parikh Financial Advisory Services.

"Many wealth managers get their clients to give general Power of Attorneys (PoAs) to operate their bank account, ostensibly for investment purposes. However, there is every chance that the funds lying in your account could be diverted elsewhere," said a wealth management official with an MNC bank.

" RBI may change the rules...Once a client gives PoA to a bank, it boils down to a portfolio management service, something that banks were banned from doing after the Harshad Mehta scam. RBI sought the details last week. It has not yet given any instructions to banks," said a senior official of a private bank.