Rising bank frauds: Modi govt working with RBI to check fraud cases below Rs 1 lakh transactions

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Published: January 4, 2019 4:22 PM

According to the recent data by the Reserve Bank of India, financial frauds rose as much as 72% in the financial year 2017-18 as the fraudsters looted a whopping Rs 41,167.7 crore

The government has also drafted a Financial Data Protection Bill to look into data theft issues. (Reuters)

To address the issue of rising bank frauds, the Narendra Modi-led government is working with the Reserve Bank of India (RBI) to check financial fraud cases below Rs 1 lakh transaction, Information Technology Minister Ravi Shankar Prasad told the Parliament on Friday. The government has also drafted a Financial Data Protection Bill to look into data theft issues, including from social networking websites, Prasad said in a written reply to Rajya Sabha.

At present, the central bank looks into the issue of frauds pertaining to debit, credits cards as well as internet banking for an amount more than Rs 1 lakh. “The data of India cannot be stolen and strict action will be taken against any kind of fraud,” Prasad added during the Question Hour while responding to Supplementary queries.

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In a response to a supplementary query on the steps that have been taken by the government to curb data hacking from social media websites, Prasad said”Today, India will not bow down to the new imperialism. We took action against Facebook the moment we received the complaint.”  Furthermore, the minister stated that the government conducts security drills and has also set up centres to provide protection.

According to the latest data by the Reserve Bank of India, financial frauds rose as much as 72% in the financial year 2017-18 as the fraudsters looted a whopping Rs 41,167.7 crore from the Indian banks as against Rs 23,933 crore in the year-ago period, This happened despite stringent monitoring and vigilance by banks.

However, the increase in fraud cases is also because of the infamous Rs 13,000-crore Punjab National Bank (PNB) fraud case, involving diamantaires Nirav Modi and his maternal uncle and partner Mehul Choksi.

Interestingly, 93% of the fraud cases worth over Rs 1 lakh were reported by PSU banks, while private banks accounted for just 6% of the total cases. Besides, large-value frauds involving Rs 50 crore and above accounted for nearly 80% of all the frauds reported last fiscal.

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