Finance Minister Nirmala Sitharaman
Finance Minister Nirmala Sitharaman

The government on Tuesday said banks and select financial institutions have reported frauds of over Rs 1.43 lakh crore during the April-December period of the current financial year.

Replying to a question on banking frauds and action taken against fraudsters, Finance Minister Nirmala Sitharaman said the government in 2015 issued a framework for timely detection, reporting and investigation related to large-value bank frauds to public sector banks (PSBs).

The framework was issued to deal with bank frauds exceeding Rs 50 crore, if classified as non-performing assets. The government also instituted wide-ranging structural and procedural reforms through the framework and other steps to check frauds in banks.

She said the Reserve Bank of India in its Financial Stability Report of December 2019 observed that the framework has helped unearth frauds perpetrated over a number of years.

"While this is reflected in the increased amount involved in frauds of Rs 1 lakh and above, reported by scheduled commercial banks (SCBs) and select financial institutions, increasing from Rs 10,171 crore in the financial year 2013-14 to Rs 1,43,068 crore in first three quarters of FY2019-20," Sitharaman said in a written reply in Rajya Sabha.

She also said that as a result of the comprehensive measures taken to check bank frauds, there is perceptible decline in the amount involved in fraud by 'year of occurrence'.

(To view our epaper please click here. For all the latest News, Mumbai, Entertainment, Cricket, Business and Featured News updates, visit Free Press Journal. Also, follow us on Twitter and Instagram and do like our Facebook page for continuous updates on the go)

Free Press Journal