RBI Data Finds More Than 23,000 Cases of Bank Frauds

The Reserve Bank of India (RBI) has come out with a data on bank frauds committed by different people including businessmen in the last five-year period. According to it, there are more than 23,000 cases of fraud that involved a whopping Rs.1 lakh crore. This is a too big amount to be ignored and comes two weeks ahead of the polls in Karnataka. The central bank has replied to a question sought under the Right to Information act by PTI news agency.

Increase In Frauds

The RBI data indicated that there was year-over-year growth in the frauds committed by different sections of the society. For instance, the financial year 2016-17 witnessed frauds of more than 5,000 cases. In the next eleven-month period of April 2017 to March 1, 2018, a total of 5,152 cases were recorded as fraud. The biggest-ever fraud amount of Rs.28,459 crores have happened only during this period. Investors and depositors were already worried about the safety of money as big businessmen are alleged to have looted money. On top of it, some of them like Vijay Mallya and Nirav Modi have even escaped from the country.

For the periods between 2013 and March 1, 2018, there were 23,866 cases of fraud committed by banks. The amount of fraud is either Rs.1 lakh or above. As a result, the total amount of frauds hit Rs.1.01 lakh crore in all the fraud cases put together. The data came out in response to an RTI query.

Significantly, the RBI has given a break-up of frauds on year-wise that could invite controversies among the politicians. For instance, in 2013 – 14, banks declared 4,306 cases of fraud that involved an amount of Rs.10,170 crore. Similarly, for the year 2014-15, there were 4,639 cases of fraud involving Rs.19,455 crore. In the following year, this was 4,693 cases of fraud with the involvement of Rs.18,698 crore. In 2016 – 17 alone, the RBI data pointed out fraud cases of 5,076 involving Rs.23,933 crore. That is bad news for the ruling BJP government.

For its part, the central bank indicated that the concerned banks are processing the fraud cases. The RBI hinted that action was being taken based on the facts and situation of individual cases. The national investigative agencies like Enforcement Directorate and the Central Bureau of Investigation (CBI) were already entrusted with big fraud cases like Nirav Modi and Mallaya.

Bank Officials Named

The central investigative agency booked two public sector banks’ top officials and IDBI’s former MD and chairman in respect of bank fraud cases. Aside from that, C. Sivasankaran, a former Aircel promoter, and his son along with companies managed by him came under the clouds of the agency for Rs.600 crore frauds. The CBI has also charged 15 senior officials of the bank of committing wrongdoing in sanctioning loans to Sivasankaran and his companies.

At the end of the year 2017, the gross non-performing assets accounted for Rs.8.41 lakh crore led by industry loans. Services and agriculture sectors followed it. This was based on a government data of all banks public sector banks put together in the country.

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