Occurrence of frauds was enabled by laxity in the financial system, and the underlying causes have been systematically dealt with by the Government through comprehensive steps for reduction in occurrence of frauds, and their proactive checking and timely detection. The steps taken in this regard include, inter-alia, the following:
The impact of the above steps is reflected in RBI’s Financial Stability Report (FSR) of June 2019. As per FSR, systemic and comprehensive checking of legacy stock of NPAs of PSBs for frauds has helped unearth frauds perpetrated over a number of years, which is getting reflected in increased number of reported incidents of frauds in recent years compared to previous years. The details of frauds of Rs. 1 lakh and above that occurred during the last three financial years (FYs), reported by PSBs to RBI, as per inputs received from RBI, are as under:
FY of occurrence |
Number of cases |
Amount involved (in crore Rs.) |
2016-17 |
1,745 |
24,291 |
2017-18 |
1,545 |
6,916 |
2018-19 |
739 |
5,149 |
Bank-wise details are at Annex.
Note: Figures cited above for PSBs include those for IDBI Bank Limited, which was recategorised as a private sector bank by RBI with effect from 21.1.2019.
This was stated by Shri Anurag Singh Thakur, Minister of State for Finance & Corporate Affairs in a written reply to a question in Lok Sabha today.
****
DSM/RM/PD
Annex
Details of frauds (Based on date of occurrence - Amount Involved Rs. 1 lakh and above) for Public Sector Banks
Amounts in crore Rs.
Bank Name |
FY |
FY |
FY |
Comprehensive measures have been taken to prevent frauds including directions to banks to examine all NPA accounts above Rs. 50 crore from the angle of possible fraud, initiation of criminal proceedings, enactment of Fugitive Economic Offenders Act 2018, creation of Central Fraud Registry, empowering Bank Heads to request for issue of Look Out Circular, establishment of National Financial Reporting Authority, Straight through processing between Core Banking System and SWIFT, advice to banks to obtain certified copy of passport of promoters /directors of companies availing loan exceeding Rs. 50 crore etc. |
Allahabad Bank |
63 |
11 |
12 |
|
Andhra Bank |
36 |
37 |
11 |
|
Bank of Baroda |
140 |
84 |
32 |
|
Bank of India |
95 |
99 |
52 |
|
Bank of Maharashtra |
34 |
32 |
38 |
|
Canara Bank |
48 |
50 |
24 |
|
Central Bank of India |
59 |
56 |
45 |
|
Corporation Bank |
52 |
12 |
5 |
|
Dena Bank |
24 |
11 |
3 |
|
IDBI Bank Limited |
91 |
94 |
99 |
|
Indian Bank |
70 |
47 |
20 |
|
Indian Overseas Bank |
53 |
34 |
30 |
|
Oriental Bank of Commerce |
42 |
24 |
8 |
|
Punjab and Sind Bank |
22 |
3 |
0 |
|
Punjab National Bank |
101 |
108 |
33 |
|
State Bank of India |
469 |
618 |
236 |
|
State Bank of Bikaner and Jaipur |
5 |
Merged with SBI |
Merged with SBI |
|
State Bank of Hyderabad |
6 |
|||
State Bank of Mysore |
12 |
|||
State Bank of Patiala |
6 |
|||
State Bank of Travancore |
15 |
|||
Syndicate Bank |
127 |
78 |
27 |
|
UCO Bank |
31 |
41 |
27 |
|
Union Bank of India |
83 |
69 |
15 |
|
United Bank of India |
29 |
15 |
20 |
|
Vijaya Bank |
32 |
22 |
2 |
Source: RBI
Note: IDBI Bank Limited was recategorised as a private sector bank by RBI with effect from 21.1.2019.
*****