Bank fraud over Rs 100 cr sees significant drop in FY’22
New Delhi:
Fraud in the banking sector involving amounts over Rs 100 crore has decreased significantly with banks reporting cases worth Rs 41,000 crore in 2021-22, compared to Rs 1.05 lakh crore in the previous year.
According to official data, private and public sector bank fraud has fallen to 118 in FY22, from 265 in 2020-21.
In the case of public sector banks (PSBs), the total fraud cases of over Rs 100 crore fell from 167 in FY’21 to 80, while for private sector lenders such cases fell to 38 in FY’22 from 98 rather, according to the data.
In terms of cumulative amount, it has fallen to Rs 28,000 crore from Rs 65,900 crore in FY’21 for PSBs. For private sector banks, the cut is from Rs 39,900 crore to Rs 13,000 crore in FY’22.
To monitor fraud, the RBI has taken several steps, including improving the effectiveness of the Early Warning System (EWS) framework, strengthening the fraud management and response system, improving data analytics for transaction monitoring, and introducing a special Market Intelligence (MI) Unit for fraud.
In 2021-22, the Reserve Bank of India (RBI) in collaboration with the Reserve Bank Information Technology Private Limited (ReBIT) conducted a study on the implementation of the EWS framework at selected scheduled commercial banks.
Furthermore, the effectiveness of EWS was assessed at selected banks using Machine Learning (ML) algorithms.
Earlier this year, the State Bank of India (SBI) reported one of the largest bank frauds in the country, totaling Rs 22,842 crore, perpetrated by ABG Shipyard and its promoters.
This was much higher than the case involving Nirav Modi and his uncle Mehul Choksi. They are alleged to have defrauded the Punjab National Bank (PNB) for about 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 into a new case involving Rs 34,615 crore, making it the largest bank fraud committed by the bureau. examined .
A consortium of lenders led by Union Bank of India has alleged that the company had used a credit facility of Rs 42,871 crore under various schemes between 2010 and 2018 but defaulted on repayments as of May 2019.
The accounts have been classified as non-performing assets by banks at various times.
The bank alleged that the promoters, along with others, siphoned and embezzled a significant portion of the funds by falsifying DHFL’s books and unfairly defaulted on the refund of dues.
This caused a loss of Rs 34,615 crore to the 17 banks in the consortium.
