The number of fraud cases in private as well as public sector banks fell from 265 in FY12 to 118 in FY12
The number of fraud cases in private as well as public sector banks fell from 265 in FY12 to 118 in FY12
Frauds of over ₹100 crore have declined significantly in the banking sector, with banks reporting ₹41,000 crore cases in 2021-22 as compared to ₹1.05 lakh crore in the previous year.
According to official data, the number of fraud cases in private and public sector banks declined to 118 in FY22, from 265 in 2020-21.
In case of Public Sector Banks (PSBs), the total number of fraud cases of more than ₹100 crore declined from 167 in FY’21 to 80, while for private sector lenders such cases declined from 98 in FY’22. 38, according to the data.
In terms of cumulative amount, it has come down to ₹28,000 crore for PSBs from ₹65,900 crore in FY’21. For private sector banks, there has been a reduction of ₹13,000 crore from ₹39,900 crore in FY22.
To check frauds, several steps including improving the efficacy of RBI Early Warning System (EWS) framework, strengthening fraud governance and response mechanism, enhancing data analysis for monitoring transactions and introduction of dedicated Market Intelligence (MI) unit is picking up. for fraud.
During 2021-22, the Reserve Bank of India (RBI) in collaboration with Reserve Bank Information Technology Private Limited (ReBIT) conducted a study on the implementation of the EWS framework in select scheduled commercial banks.
In addition, the effectiveness of EWS was assessed in select banks using Machine Learning (ML) algorithms.
Earlier this year, State Bank of India (SBI) reported the biggest bank fraud in the country, totaling Rs 22,842 crore, committed by ABG Shipyard and their promoters.
This was much more than the case involving Nirav Modi and his uncle Mehul Choksi, who allegedly duped Punjab National Bank (PNB) to the tune of Rs 14,000 crore by issuing fraudulent Letters of Undertaking (LoUs).
Last month, the Central Bureau of Investigation (CBI) booked Dewan Housing Finance Ltd (DHFL), its former CMD Kapil Wadhawan, director Dheeraj Wadhawan and others in a fresh case worth Rs 34,615 crore, making it the highest probe probed by the agency. There was a huge bank fraud. ,
A consortium of lenders led by Union Bank of India has alleged that the company had availed a loan facility of ₹42,871 crore from the consortium under various arrangements between 2010 and 2018, but started defaulting on repayment from May 2019. Gave.
The accounts were declared non-performing assets by the banks at different times.
The bank alleged that the promoters, among others, misappropriated and misappropriated a significant portion of funds by rigging the books of DHFL and dishonestly defaulted in repayment of dues.
This caused a loss of ₹34,615 crore to the 17 banks of the consortium.