Measures have been taken to deter frauds in banks: Nirmala Sitharaman

41

Nirmala SitharamanThe Finance Minister Nirmala Sitharaman has said that comprehensive measures have been taken to tighten fraud prevention systems and deter perpetration of frauds in banks.

The Parliament was informed on Tuesday that the bank frauds of Rs 1 lakh and above has been on a decline since 2016-17.

Banks and select financial institutions reported to the Reserve Bank of India (RBI) that frauds of Rs 1 lakh and above, amounting to Rs 25,884 crore, occurred during 2016-17. The amount involved in such frauds in 2017-18 and 2018-19 stood at Rs 9,866 crore and Rs 6,735 crore, respectively, as per a written reply by Finance Minister Nirmala Sitharaman in Rajya Sabha.

She said comprehensive measures have been taken to tighten fraud prevention systems and deter perpetration of frauds in banks.

These measures will include giving powers to banks to initiate criminal proceedings against wilful defaulters, the government-backed framework for timely detection, reporting and investigation of large value bank frauds in public sector banks.

Enactment of the Fugitive Economic Offenders Act, 2018 as well as authorisation to PSBs to obtain a certified copy of the passport of promoters/directors of companies availing loans of more than Rs 50 crore are among other measures that have been adopted by the government.

“Proactive action has been taken against wilful defaulters, with FIRs being registered by PSBs against 3,154 willful defaulters,” she said.

The Government has formed an inter-agency coordination committee to look into the large value bank frauds, she said.

 

 

The Banking & Finance Post is an initiative of Elets Technomedia Pvt Ltd, existing since 2003.
Now, Elets' YouTube channel, a treasure of premier innovation-oriented knowledge-conferences and awards, is also active. To Subscribe Free, Click Here.

Get a chance to meet the Who's who of the BFSI industry. Join Us for 4th BFSI CTO Summit, Mumbai and explore business opportunities. Like us on Facebook, connect with us on LinkedIn and follow us on Twitter, Instagram & Pinterest.