Bank frauds reported in 2018-19
Over 6,800 cases of bank fraud involving an unprecedented Rs 71,500 crore have been reported in 2018-19, the Reserve Bank of India has said.
Number of cases reported last year
A total of 5,916 such cases were reported by banks in 2017-18 involving Rs 41,167.03 crore.
Over 73 per cent increase in fraud amount
As many as 6,801 cases of fraud were reported by scheduled commercial banks and select financial institutions involving an amount of Rs 71,542.93 crore in the last fiscal -- an increase of over 73 per cent in the fraud amount.
Total number of cases reported
In the last 11 fiscal years, a total of 53,334 cases of fraud were reported by banks -- involving a massive amount of Rs 2.05 lakh crore.
Bank fraud on the rise
In the 2012-13 fiscal, 4,235 fraud cases involving Rs 8,590.86 crore were reported by banks against 4,306 cases (involving Rs 10,170.81 crore) in 2013-14 and 4,639 cases (involving Rs 19,455.07 crore) in 2014-15, the RBI said. As many as 4,693 and 5,076 cases of fraud were reported in 2015-16 and 2016-17 involving Rs 18,698.82 crore and Rs 23,933.85 crore, respectively.
What RBI 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 bank said.
High-profile cases
The data assumes significance as banks are grappling with high-profile fraud cases involving absconding billionaire Nirav Modi and liquor baron Vijay Mallya among others.
CVC conducts analysis
The large-scale fraud has prompted anti-corruption watchdog Central Vigilance Commission (CVC) to do an analysis which focused on modus operandi, amount involved, type of lending, anomalies observed, loopholes that facilitated perpetration of the fraud concerned and the systemic improvement required to plug the gaps in the system and procedures.
Frauds classified across sectors
The frauds were classified and analysed for 13 sectors, including gem and jewellery, manufacturing and industry, agriculture, media, aviation, service and project, discounting of cheques, trading, information technology, export business, fixed deposits, demand loan and letter of comfort.
Measures suggested by CVC
The measures suggested by the CVC included strengthening standard operating procedures (SOPs) and the monitoring system, among others.
Officials booked for bank fraud in 2018
The CBI in 2018 booked top officials of two public sector banks, a former CMD of IDBI Bank, former Aircel promoter C Sivasankaran, his son and companies controlled by him in connection with a Rs 600 crore loan fraud in the IDBI.
15 bank officials named in FIR
The investigative agency named 15 bank officials who worked at senior levels at the IDBI in 2010 and 2014 when loans were sanctioned to companies controlled by Sivasankaran, in its FIR registered on a compliant from the CVC.
Names included in latest FIR
Managing director and CEO of Indian bank, Kishor Kharat and his counterpart in Syndicate Bank, Melwyn Rego along with then chairman-cum-managing director of IDBI Bank M S Raghavan, have been named in the latest FIR filed by the CBI.
Central agencies continue probe
Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) are also probing big-ticket bank fraud cases.