Categories: Business

Bank fraud more than double in FY20 to Rs 1.85 trillion

Photo: GOOGLE

Bank frauds more than double in FY20

new Delhi. During the last financial year, the total amount of frauds recorded by banks above Rs 1 lakh has doubled to Rs 1.85 lakh crore. At the same time, the number of such cases has increased by 28 percent during the same period. Government banks account for 80 per cent of the total fraud reported. At the same time, the highest number of frauds have been done with loans from banks. All this information has been revealed in the annual report released by the Reserve Bank on Tuesday.

The special thing is that these cases of fraud have been reported only in the last financial year, although many of these cases are related to the last several years. According to the Reserve Bank, in the last financial year, the average time for fraud and detection of banks and financial institutions has been 2 years. At the same time, the average time to report fraud of more than Rs 100 crore has been much more than this. It took an average of 63 months to record these scams. The central bank has indicated that it will try to find out why it took banks so long to report. The Reserve Bank is constantly trying to minimize the time between the scams and the banks recording it.

According to the report, the impact of large loans has been the highest in the total amount. The share of the top 50 fraudulent loans is 76% of the total amount of fraud. At the same time, out of the total fraud of Rs 1.85 lakh crore, 80 per cent is from public sector banks, 18 per cent is from private banks. 98% of the total fraud is linked to debt segment. The remaining part is about the balance sheet, internet banking, cards and scams related to overseas transactions.

According to RBI regulations, if a fraudulent loan is registered, the bank has to keep a provision equal to 100% of the remaining amount. They can do this at one time or they can do it in the next 4 quarters. The special thing is that after the surge in the number of scams recorded last year, the fraud recorded during the June quarter in this financial year has seen a decline compared to the same period of the previous year. The scams recorded between April and June included a total amount of Rs 28,843 crore, while in the same quarter last year the figure was more than Rs 42 thousand crore.

This post was published on August 26, 2020 9:40 pm

Content Team

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