Skip to main content

India's bank frauds under Modi rose by 90%; in Gujarat 177%; in Tamil Nadu 229%, in West Bengal 667%: RBI

By Our Representative
A Bangalore-based startup, which helps citizens file queries under the Right-to-Information (RTI) Act, OnlineRTI.com, has revealed in the year since Narendra Modi’s government took charge, there has been a whopping 90 per cent increase in bank frauds, as per Reserve Bank of India (RBI) data obtained through RTI.
“Over the year since Modi’s government took office, the amount involved in bank fraud rose from Rs 10,170 crore in the fiscal year 2013-14 to Rs 19,361 crore in 2014-15”, says a report based on the data, adding, “The fraud ranged from cheque alteration to fake loans, debit/credit card fraud to cyber fraud.”
The data further show that the banks in Maharashtra saw a 150 per cent increase in fraud, from Rs 2,445 crore in 2013-14 to Rs 6,115 crore in 2014-15, and banks in West Bengal notched a 667 per cent increase in fraud, from Rs 773 crore to Rs 5,930 crore. The two states together accounted for more than 50 per cent of the total loss through fraud.
Gujarat, which for long has been touted as India’s “model” state, witnessed a 177 per cent rise in bank fraud – from Rs 453 crore in 2013-14 to Rs 1,256 crore in 2014-15. Significantly, in the year 2012-13, Gujarat reported just about Rs 51 crore worth of bank fraud. In Tamil Nadu, it rose by 279 per cent -- from Rs 483 crore to Rs 1,831 crore.  During the same period, Delhi saw a fall in bank fraud by 33 per cent and Andhra Pradesh by 26 per cent.
Bringing these and other facts to light, an online data analysis website, www.indiaspend.com, said that the rise in bank fraud is a major reason why Reserve Bank of India (RBI) was forced to set up “the fraud registry and the Prime Minister’s Office (PMO) reviewed the fraud-detection system”, says the report.
An RBI circular issued in July 2015, taking a serious view of the rise in bank fraud cases, said that when banks discover fraud, they should to report cases to the Central Bureau of Investigation, the police or to the Serious Fraud Investigation Office.
“Public-sector banks appear to have borne the brunt of the fraud-spike, with the Punjab National Bank, which lost a sum of Rs 2,310 crore, topping the list for 2014-15, followed by the Central Bank of India, where the lost amount stands at Rs 2,150 crore, the data further reveal. Both banks recorded a fraud increase of more than 200% since 2012-13”, the report, authored by analyst Gangadhar S Patil, said.
It added, “Despite a market share of 30 per cent, private banks collectively account for around 40 per cent of losses from bank fraud.” India has 20 private banks, 26 public-sector banks and 30 foreign banks.
Patil said, “In some cases, bank staff were involved: 47 such cases of fraud, valued at Rs 177 crore, were detected during 2014-15, according to data submitted to Parliament”, adding, “When staff are involved, banks have always tried to suppress fraud and categorise them as non-performing assets or NPAs (to show they were business loses).”
The report pointed out, NPAs, in fact, are a “fig leaf behind which fraud hides, soared 23% from Rs 2,51,060 crore in March 2014 to Rs 3,09,409 crore in March 2015, according to a statement in Parliament this July by Minister Of State (Finance) Jayant Sinha.”

Comments

Kumari Puja said…
Great Information.
Thank You

TRENDING

Green revolution "not sustainable", Bt cotton a failure in India: MS Swaminathan

Counterview Desk
In a recent paper in the journal “Current Science”, distinguished scientist PC Kesaven and his colleague MS Swaminathan, widely regarded as the father of the Green Revolution, have argued that Bt insecticidal cotton, widely regarded as the continuation of the Green Revolution, has been a failure in India and has not provided livelihood security for mainly resource-poor, small and marginal farmers.
Sharply taking on Green Revolution, the authors say, it has not been sustainable largely because of adverse environmental and social impacts, insisting on the need to move away from the simplistic output-yield paradigm that dominates much thinking. Seeking to address the concerns about local food security and sovereignty as well as on-farm and off-farm social and ecological issues associated with the Green Revolution, they argue in favour of what they call sustainable ‘Evergreen Revolution’, based on a ‘systems approach’ and ‘ecoagriculture’.
Pointing out that Evergreen Revol…

World Bank clarifies: Its 26th rank to India not for universal access to power but for ease of doing business

By Our Representative
In a major embarrassment to the Government of India, the World Bank has reportedly clarified that it has not ranked India 26th out of 130 countries for providing power to its population. The top international banker’s clarification comes following Union Power Minister Piyush Goyal’s claim that India has “improved to 26 position from 99” in access to electricity in just one year.

Some Hindu bodies in US defending BJP-RSS' divisive, violent activities: Agnivesh

Counterview Desk Last week, Washington DC saw speakers at a religious freedom roundtable, chaired by the US Ambassador for Religious Freedom, Sam Brownback, express concern over "eroding" space for religious freedom in India. Dr Mike Ghouse, executive director, of the Center for Pluralism in Washington DC, referring to the roundtable, said in an email alert that Indian-Americans have "a moral duty to prevent India from being labeled as a Country of Particular Concern by the United States Commission on International Religious Freedom (USCIRF)".

Rejoinder: Inescapable to have Central Water Commission as strong technical body in India

By BN Navalawala*
This is with reference to Counterview Blog (December 5, 2018), "Modi govt 'shelves' water reforms report, shows 'no interest' in its recommendations", below mentioned are my comments/observations thereon:
A committee was constituted under the Chairmanship of Dr. Mihir Shah, Former Member, Planning Commission, for restructuring of Central Water Commission (CWC) and Central Ground Water Board (CGWB) for optimal development of water resources in the country in the backdrop of Integrated Water Resources Management (IWRM).

Murder of Tamil Nadu teenage Dalit girl: "Stoic silence" despite #MeToo movement

Counterview Desk
Brinelle D'souza, who is with the Centre for Health and Mental Health, School of Social Work, Tata Institute of Social Sciences, Mumbai, has prepared a strong statement to protest the brutal murder of 13-year-old Rajalakshmi. "Other than a few media reports, this gruesome killing has not caught national attention despite a very vibrant #MeToo campaign currently underway", regrets D'souza.

Preventing childhood deaths: India performs worse than Bangladesh, "equals" Pakistan

By Rajiv Shah
A just-released study, “The Pneumonia and Diarrhea Progress Report 2018”, prepared by the International Vaccine Access Centre (IVAC) at the Johns Hopkins Bloomberg School of Public Health, has identified India among 15 other countries which are still far off the mark in achieving the targets of the Global Action Plan for the Prevention of Pneumonia and Diarrhea (GAPPD).

60 ex-civil servants seek release of CAG reports on Rafale, demonetisation before 2019 polls

Counterview Desk
As many as 60 retired civil servants have asked President Ram Nath Kovind to expedite the release of Comptroller and Auditor General (CAG) reports on demonetisation and the Rafale deal. The letter, signed mainly by former Indian Administrative Service, Indian Foreign Service and Indian Police Service officers, regrets that the status of the audit is "unclear”. According to them, “An impression is gaining ground that CAG is deliberately delaying its audit reports on demonetisation and Rafale deal till after the May 2019 elections so as not to embarrass the present government”.

India's rewritten textbooks talk of demerits of democracy, praise Hitler, underrate Mughals

Counterview Desk
A detailed, 3,800-word review of the books rewritten under directions of the BJP rulers across India since Prime Minister Narendra Modi came to power in May 2014 has suggested that one of aims of the books is to instill a sense of doubt about India’s democratic polity among the country’s young minds. Reviewed in the prestigious US journal, “The New York Review of Books”, in its latest issue (December 6, 2018) by Alex Traub, the scrutiny insists, the effort has also been to paint Indian history from the angle of “Hindu triumphalism”, even as creating “Islamophobia”.

Govt of India "tarnishing" NGO reputation, dossier leaked selectively: Amnesty

Counterview Desk
Amnesty International India has said that a deliberate attempt is being made to tarnish its reputation by leaking a dossier, supposedly made by investigating agencies, to media without giving it access to any such information. The high profile NGO’s claim follows a Times Now report about proceedings launched by investigative agencies, including Enforcement Directorate (ED) against the rights body for “violations” of rules pertaining to overseas donations.

Four children die after poor UP Dalit, Muslim families forced to flee to forest area: PVCHR

Counterview Desk
Peoples’ Vigilance Committee on Human Rights (PVCHR) has said that the forest department police’s crackdown, allegedly without any prior notice, on Dalit and Muslim households in Dakhin Tola, Churk Bazaar, Sonbhadra district, Uttar Pradesh, beating up “children and old people, women, and men in an inhuman way”, has led to “forced displacement, starvation and discrimination”. This has reportedly affected about 350 people.