Recently, after the case of PNB (Punjab National Bank) scam. Emerged, the agencies have started extracting data to explain the crisis affecting the banking sector. The statistics of the Reserve Bank of India show. That fraud in the year 2016-17 was 23,903 million rupees, 86% (Rs. 20,561 million) is lost and an advances type of fraud. The fraud in PNB was Rs 2,808 million, of which Rs 2,788 million (99.3%) link in Advances.
Increase 28% cases
While the RBI is compiling the data for 2017-18. The data for the three years ending March 31, 2016, shows that 67% of total fraud links to advance. Which indicates 28% growth. In 2016-2017, banks had a loss of Rs 22,743 million for fraud. Out of which Rs 15,238 million was related to the advance.
According to experts and bankers. The pre-related fraud is due to trust and contravention of the contract and misuse of letters of loan or guarantees, submission of fake documents for obtaining loans and for mortgages of assets that do not exist is there.
Way to do
IIM-B’s RBI President Professor Prof. Says Charan Singh As long as there is wealth, it cannot get rid of the greed system. To get whatever can be possible. What government and banks can do to establish such systems?. To reduce the fraud of us, we need overhauling from the transfer of the period of all employees of banks. To make the top management and directors responsible, the system needs complete cleaning Is necessary. “
Increase in fraud case
The report has included exponential growth in credit fraud for the past few years, however, the figures for FY18 are still to emerge, the data of the three years ending 31 March 2016 indicates that 67% of all frauds have progressed. In comparison, which is currently advocating a massive increase, the figures further say that in 2010, the banks had lost at least rupees. 22,743 crores due to fraud, and total deposits in rupees 15,238 crores
Banks run to fill the gap
Immediately after the announcement of PNB, the banks become crazy because the fraud of 11,400 million expects – an increase of more than Rs 20,000 million was related to many other banks, the companies of Nirav Modi and Mehul Choksi give the LUO (Letters of Undertakings).
Although the loss already did, the banks are now running to see internal systems, employee records, by regulating the use of the swift system. The primary device used to send financial communications to a foreign bank, which uses by PNB did by two junior level employees.
Brady House Branch abused SWIFT system, apart from fraud and fraud of Rs 11,400 million to help companies of Modi and Choksi companies to get loans from foreign branches of Indian banks, many other illegalities made by Choksi and Modi companies are illegal. The people arrested in the case – especially bankers, play a major role in the fraud on a large scale.
RBI has set up a panel
So far, the RBI has set up a panel for bank fraud and investigation of such cases of banks, in which they have tightened the norms for obtaining large loans. In fact, the role of the auditors in the scandals investigate the agency, as it is particularly going on without fraud “seeing” for seven years. While the RBI says that it is warned banks three times about such fraud in August 2016, no action was taken against banks at that time.
Yesterday, some surprising details come out, in which the growing concerns of the Indian banking sector expose. Note the figure obtain various credit rating agencies. Show that in the last 10 years, the banks deliberately include Rs 3,60,000 million. Due to the exponential growth of the defaulters. In another report of Reuters, it indicates that government banks in the country have registered at least 8,670 loan fraud cases in the last five financial years. Which reduced to $ 9.58 billion.