On Thursday, the central bank put out its annual report in which it said that the number of cases of frauds reported by banks increased by 15 per cent in 2018-19 on a year-on-year basis with the amount involved rising by 73.8 per cent.
Rise in bank frauds: A day after the Reserve Bank of India reported jump in bank frauds, Congress general secretary Priyanka Gandhi on Friday questioned the government saying who was the guarantor. In a tweet, she said: “The country’s largest banking institution RBI is saying that bank frauds are increasing under the government’s nose. In 2018-19, the theft increased further. The banks have lost Rs 72,000 crore. But who is the guarantor who is allowing such a big fraud?”
On Thursday, the central bank put out its annual report in which it said that the number of cases of frauds reported by banks increased by 15 per cent in 2018-19 on a year-on-year basis with the amount involved rising by 73.8 per cent. In 2017-18, the number of cases of frauds was 5,916 involving Rs 41,167.04 crore that went up to 6,801 frauds involving Rs 71,542.93 crore in 2019.
According to the report, among bank groups, PSBs, which constitute the largest market share in bank lending, have accounted for the bulk of frauds reported in 2018-19. It was followed by private sector banks and foreign banks. The average lag between the date of occurrence and its detection by banks was 22 months. The average lag for large frauds, i.e. Rs 1 billion and above, amounting to Rs 522 billion reported during 2018-19, was 55 months.
Congress media in-charge Randeep Singh Surjewala too hit out at the government and said: “Bank Frauds up by 74%! 2017-18 – Rs 41,167 Cr, 2018-19 – Rs 71,542 Cr. ‘Loot & Scoot’ in ‘New India’ as a complicit BJP Govt looks the other way and common man is taxed!” The Congress has been targeting the government for the economic slowdown and recent RBI payout to the government.
After the RBI decided to transfer excess fund to the government, Rahul Gandhi said that the prime minister and finance minister were clueless about how to solve their self created economic disaster. “Stealing from RBI won’t work – it’s like stealing a Band-Aid from the dispensary & sticking it on a gunshot wound,” he added.