Private lenders report more frauds but PSBs' amount higher
Frauds in public sector banks were mainly in loan portfolios
bank fraud
May 2023
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December 2022
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August 2020
Banks must hear borrowers before classifying accounts as fraud: Supreme Court
The top court said that classifying accounts as fraud results in serious criminal and civil consequences for borrowers.
CBI custody of Chanda Kochhar, her husband and Venugopal Dhoot extended till Dec 29
The CBI had filed a first information report (FIR) against Kochhar, her husband and Dhoot in 2019.
Banks reported frauds worth ₹19,485 cr in H1 FY23: RBI
The number of financial frauds rose to 5,406 in the first six months of the financial year 2022-23 compared with 4,069 in the corresponding period a year ago.
ED seizes assets worth ₹2,747 cr in India's biggest bank fraud case
The attached assets include two shipyards in Surat and Dahej, plots, commercial and residential premises in Gujarat and Maharashtra and bank accounts owned by ABG Shipyard.
ED attaches assets worth ₹19,111 crore of loan fugitives
Out of the attached assets, ₹15,113 crore, which is 66.91% of the defrauded amount, has been restituted to public sector banks, finance ministry told Lok Sabha.
PNB names IL&FS power company in ₹2,060 crore fraud
The report from PNB comes a month after Punjab & Sind Bank reported a borrowing fraud worth ₹148.867 crore in the NPA account of ITNPCL.
How banking frauds mount
AGB Shipyard’s loan defaults were known since 2013 and continued to be ignored till 2016. Its frauds were found out in 2019 and yet not much happened until it exploded in February 2022.
78% expect bank frauds to rise up to 2024
While banks have increased investments towards fraud risk management and monitoring systems and controls, these efforts seem insufficient, says Deloitte India.
Lessons from white-collar crimes
It’s only when we admit that our propensity to err is much greater than we often imagine that we’ll begin to take necessary steps to reform ourselves.
