Bank Frauds Increased By 72% in 2017-18; Number of Frauds Quadrupled in Last 4 Years: RBI
The Rs 13,000 crore PNB fraud case involving Nirav Modi, Mehul Choksi primarily led to jump in the amount.
Bank frauds increased by 72 per cent from Rs 23,933 crore in the previous years to Rs 41,167.7 crore in 2017-18, according to the Reserve Bank of India (RBI).
The RBI data, released on Friday, December 28, stated that 5,917 instances of fraudulent loot (bank fraud) took place despite “stringent monitoring and vigilance”, The Indian Express reported. In the previous year, the number of bank fraud cases stood at 5,076. The data also highlighted the fact that instances of bank fraud have been rising over the “last four year by four times from Rs 10,170 crore in 2013-14”.
Cyber frauds also increased in 2017-18 as banks reported losing Rs 109.6 crore in 2,059 cases, whereas the tally stood at Rs 42.3 crore with 1,372 cases the previous year. Moreover, the fraud cases have contributed to increasing bad loans, which were at Rs 10,39,700 crore as of March 2018.
The report said that the Punjab National Bank (PNB) fraud case involving fugitive jeweller Nirav Modi and Mehul Choksi, which amounts to over Rs 13,000 crore, primarily lead to the jump in the amount of bank fraud in 2017-18. “In terms of amount, frauds in the banking sector increased sharply in 2017-18, mainly reflecting a large value case in the jewellery sector,” the RBI said.