Public sector banks recovered over Rs 4.18 lakh crore related to frauds, defaults in last three fiscals: Minister Bhagwat Karad

The government has taken comprehensive steps to tackle defaults and to effect recovery from defaulters, Minister of State for Finance Bhagwat Karad said in the Rajya Sabha.

Also, the amount related to frauds of Rs 1 lakh and above has declined over the period. (Representative image)
Also, the amount related to frauds of Rs 1 lakh and above has declined over the period. (Representative image)

Public sector banks recovered over Rs 4.18 lakh crore in the last three financial years from incidents pertaining to frauds and defaults, Parliament was informed on Tuesday.

Also, the amount related to frauds of Rs 1 lakh and above has declined over the period.

The government has taken comprehensive steps to tackle defaults and to effect recovery from defaulters, Minister of State for Finance Bhagwat Karad said in a written reply in the Rajya Sabha.

Karad said the government has also taken additional measures to deter fraudsters and defaulters, such as enactment of the Fugitive Economic Offenders Act under which there is a provision to attach the properties of a fugitive economic offender, as well as disentitlement of the offender from defending any civil claim.

Also, the heads of public sector banks (PSBs) have been empowered to take action against such people as well as to obtain a certified copy of the passport of promoters or directors of companies availing loans of over Rs 50 crore.

Enabled by these measures, SCBs (scheduled commercial banks) recovered an amount of Rs 4,18,435 crore over the last three financial years, Karad said in the upper house of Parliament.

“As per Reserve Bank of India data, amount involved in frauds of Rs 1 lakh and above, as reported by SCBs and select financial institutions, based on the date of occurrence, has declined from Rs 40,264 crore in the financial year 2018-19 to Rs 28,245 crore in 2019-20 and further to Rs 11,486 crore in 2020-21,” the minister added.

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