Whopping bank frauds, a serious issue

As per RBI report a whopping amount of involved in bank frauds of Rs.71,500 crore from 6800 cases is quite estonishing. This has a dent on the health of the banking industry, its profits, and a direct bearing on the credit disbursals which is heart of the banking activities.

Cases of frauds are to be reported to RBI as criminal complaints with law enforcing agencies. The Action Taken Report (ATR) also is not available. Now the banks are grappling with high profile fraud cases involving absconding billionaire Nirav Modi and liquor baron Vijay Mallya among others.

Presently after IL & FS ltd being classified as NPA by the lenders a fraud has also has been identified with its operations. The CVC has analysed these frauds elaborately and submitted the report.

Thee analyses focussed on modus operandi,amount involved,type of lending anomalies observed,loopholes that facilitated perpetration of fraud concerned and systemic improvement required to plug the loopholes in the system and procedures.

The new government must find out ways and means immediately to arrest these frauds and develop streamlined procedure and regulations to avoid them

TSN Rao, Bhimavaram