Citibank has come ahead with an announcement to compensate the investors who were duped of their money in Citibank fraud. Citi's payment will, however, be specific to the principal amount shareholders have put in.

As per the insurers, asserts of this nature are extended by a professional indemnity policy, which is dealt as an add-on cover with the bankers' bond. Reciprocally, the bank would be searching an assurance from the victims that they will transfer all their rights of recovery to the bank and forebode to help the bank.

The American bank is realized to have a covering that is internationally handled, which, among other things, covers losses due to fraud by employees.

The sum invested in Puri's scheme is expected to be in the range of Rs 300 crore. The bank on Saturday stated that it is working towards a 'fair recompense' for those who lost money in the fraudulent scheme commercialized by Puri.

The Bankers Blanket Bond (BBB) is a comprehensive policy used by banks to transfer operational risk.

Citibank is likely to dip into its global insurance policy to compensate customers victimized by its wealth manager; Shivraj Puri. In add-on to watching the money lead, the bank would also pursue a claim with its insurers.