Banks Report Frauds Worth Rs 34,000 Crore In April-December 2021: RBI
Banks and financial institutions reported 96 cases of fraud involving Rs 34,097 crore from April-December.
A customer uses an automated teller machine (ATM) at a Siam Commercial Bank Pcl. branch in Bangkok, Thailand. (Photographer: Luke Duggleby/Bloomberg)
A total of 27 scheduled commercial banks and financial institutions have reported 96 cases of fraud, involving a total amount of Rs 34,097 crore in the nine months ended December.
While Punjab National Bank recorded the highest value of frauds worth Rs 4,820 crore, Bank of India recorded the highest number of frauds at 13, according to data from the Reserve Bank of India.
In response to a question in the Rajya Sabha during the budget session of parliament, Minister of State for Finance Bhagwat Karad gave bank-wise details of frauds worth more than Rs 100 crore. These were reported by scheduled commercial banks and select financial institutions between April and December.
The master directions issued by the RBI focuses on prevention of frauds, early detection, prompt reporting and timely initiation of accountability procedures in the event of frauds.
The minister said in his reply that in addition to the master directions, several measures have been taken to deter fraudsters and defaulters.
It includes:
The Fugitive Economic Offenders Act, 2018 allows for attachment of property of a fugitive economic offender. Such properties can also be confiscated and the offender can be disentitled, barring them from defending any civil claim.
Heads of public sector banks have been empowered to issue requests for issuance of look out circulars.
Public sector banks can decide on publishing photographs of wilful defaulters, based on RBI's instructions and as per board approved policies.
PSBs can obtain certified copies of the passport of the promoters or directors and other authorised signatories of companies availing loan facilities of more than Rs 50 crore.