NEW DELHI: Over 6,800 circumstances of financial institution fraud involving an unparalleled Rs 71,500 crore had been reported in 2018-19, the Reserve Bank of India (RBI) has said.
A complete of five,916 such circumstances have been reported via banks in 2017-18 involving Rs 41,167.03 crore, it said.
As many as 6,801 circumstances of fraud have been reported via scheduled industrial banks and make a selection financial institutions involving an quantity of Rs 71,542.93 crore within the closing fiscal (build up of over 73 per cent within the fraud quantity), the Reserve Bank said in reply to an RTI query filed via this PTI journalist.
In the closing 11 fiscal years, a total of 53,334 circumstances of fraud have been reported via banks involving a large quantity of Rs 2.05 lakh crore, the central financial institution's data said.
During 2008-09, a total of four,372 circumstances have been reported involving an quantity of Rs 1,860.09 crore. In 2009-10, Rs 1,998.94 crore price fraud used to be reported in four,669 circumstances.
A complete of four,534 and four,093 such circumstances have been reported in 2010-11 and 2011-12 involving Rs three,815.76 crore and Rs four,501.15 crore, respectively.
In the 2012-13 fiscal, four,235 fraud circumstances involving Rs 8,590.86 crore have been reported via banks as in opposition to four,306 circumstances (involving Rs 10,170.81 crore) in 2013-14 and four,639 circumstances (involving Rs 19,455.07 crore) in 2014-15, the RBI said.
As many as four,693 and five,076 circumstances of fraud have been reported in 2015-16 and 2016-17 involving Rs 18,698.82 crore and Rs 23,933.85 crore, respectively, it said.
"Cases of fraud reported to RBI are required to be filed by banks as criminal complaints with law enforcement agencies. The information in respect of action being taken or already taken is not available readily," the central financial institution said.
The data assumes significance as banks are grappling with high-profile fraud circumstances involving absconding billionaire Nirav Modi and liquor baron Vijay Mallya amongst others.
The large-scale fraud had prompted anti-corruption watchdog Central Vigilance Commission (CVC) to do an analysis and it came out with a document on best 100 frauds.
The analysis focussed at the modus operandi, quantity concerned, form of lending (consortium or person), anomalies noticed, loopholes that facilitated perpetration of the fraud concerned and the systemic improvement required to plug the gaps within the system and procedures.
The frauds have been categorized and analysed for 13 sectors, together with gem and jewellery, production and trade, agriculture, media, aviation, service and undertaking, discounting of cheques, trading, data technology, export trade, fixed deposits, call for loan and letter of comfort.
The measures recommended via the CVC integrated strengthening same old running procedures (SOPs) and the tracking system, amongst others.
The CBI in 2018 booked best officials of 2 public sector banks, a former CMD of IDBI Bank, former Aircel promoter C Sivasankaran, his son and corporations managed via him in connection with a Rs 600-crore loan fraud within the IDBI.
The investigative company named 15 financial institution officials who labored at senior ranges at the IDBI in 2010 and 2014 when loans have been sanctioned to companies managed via Sivasankaran, in its FIR registered on a grievance from the CVC.
Managing director and CEO of Indian Bank, Kishor Kharat (who used to be then MD and CEO of IDBI Bank) and his counterpart in Syndicate Bank, Melwyn Rego (then deputy managing director in IDBI Bank) along with then Chairman-cum-Managing Director of IDBI Bank M S Raghavan, had been named in the most recent FIR filed via the CBI.
Central agencies like the Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) are also probing big-ticket financial institution fraud circumstances.
A complete of five,916 such circumstances have been reported via banks in 2017-18 involving Rs 41,167.03 crore, it said.
As many as 6,801 circumstances of fraud have been reported via scheduled industrial banks and make a selection financial institutions involving an quantity of Rs 71,542.93 crore within the closing fiscal (build up of over 73 per cent within the fraud quantity), the Reserve Bank said in reply to an RTI query filed via this PTI journalist.
In the closing 11 fiscal years, a total of 53,334 circumstances of fraud have been reported via banks involving a large quantity of Rs 2.05 lakh crore, the central financial institution's data said.
During 2008-09, a total of four,372 circumstances have been reported involving an quantity of Rs 1,860.09 crore. In 2009-10, Rs 1,998.94 crore price fraud used to be reported in four,669 circumstances.
A complete of four,534 and four,093 such circumstances have been reported in 2010-11 and 2011-12 involving Rs three,815.76 crore and Rs four,501.15 crore, respectively.
In the 2012-13 fiscal, four,235 fraud circumstances involving Rs 8,590.86 crore have been reported via banks as in opposition to four,306 circumstances (involving Rs 10,170.81 crore) in 2013-14 and four,639 circumstances (involving Rs 19,455.07 crore) in 2014-15, the RBI said.
As many as four,693 and five,076 circumstances of fraud have been reported in 2015-16 and 2016-17 involving Rs 18,698.82 crore and Rs 23,933.85 crore, respectively, it said.
"Cases of fraud reported to RBI are required to be filed by banks as criminal complaints with law enforcement agencies. The information in respect of action being taken or already taken is not available readily," the central financial institution said.
The data assumes significance as banks are grappling with high-profile fraud circumstances involving absconding billionaire Nirav Modi and liquor baron Vijay Mallya amongst others.
The large-scale fraud had prompted anti-corruption watchdog Central Vigilance Commission (CVC) to do an analysis and it came out with a document on best 100 frauds.
The analysis focussed at the modus operandi, quantity concerned, form of lending (consortium or person), anomalies noticed, loopholes that facilitated perpetration of the fraud concerned and the systemic improvement required to plug the gaps within the system and procedures.
The frauds have been categorized and analysed for 13 sectors, together with gem and jewellery, production and trade, agriculture, media, aviation, service and undertaking, discounting of cheques, trading, data technology, export trade, fixed deposits, call for loan and letter of comfort.
The measures recommended via the CVC integrated strengthening same old running procedures (SOPs) and the tracking system, amongst others.
The CBI in 2018 booked best officials of 2 public sector banks, a former CMD of IDBI Bank, former Aircel promoter C Sivasankaran, his son and corporations managed via him in connection with a Rs 600-crore loan fraud within the IDBI.
The investigative company named 15 financial institution officials who labored at senior ranges at the IDBI in 2010 and 2014 when loans have been sanctioned to companies managed via Sivasankaran, in its FIR registered on a grievance from the CVC.
Managing director and CEO of Indian Bank, Kishor Kharat (who used to be then MD and CEO of IDBI Bank) and his counterpart in Syndicate Bank, Melwyn Rego (then deputy managing director in IDBI Bank) along with then Chairman-cum-Managing Director of IDBI Bank M S Raghavan, had been named in the most recent FIR filed via the CBI.
Central agencies like the Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) are also probing big-ticket financial institution fraud circumstances.
Bank fraud touches unprecedented Rs 71,500 crore in 2018-19: RBI
![Bank fraud touches unprecedented Rs 71,500 crore in 2018-19: RBI]()
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June 03, 2019
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