Bank fraud touches unprecedented Rs 71,500 crore in 2018-19: Reserve Bank

Over 6,800 cases of bank fraud involving an unprecedented Rs 71,500 crore have been reported in 2018-19, Reserve Bank of India has said.

A total of 5,916 such cases were reported by banks in 2017-18 involving Rs 41,167.03 crore, it said.

As many as 6,801 cases of fraud were reported by scheduled commercial banks and select financial institutions involving an amount of Rs 71,542.93 crore in last fiscal (increase of over 73 per cent in fraud amount), Reserve Bank of India (RBI) said in reply to an RTI query filed by this PTI journalist.

In last 11 fiscal years, a total of 53,334 cases of fraud were reported by banks involving a massive amount of Rs 2.05 lakh crore, central bank's data said.

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During 2008-09, a total of 4,372 cases were reported involving an amount of Rs 1,860.09 crore. In 2009-10, Rs 1,998.94 crore worth fraud was reported in 4,669 cases. A total of 4,534 and 4,093 such cases were reported in 2010-11 and 2011-12 involving Rs 3,815.76 crore and Rs 4,501.15 crore, respectively.

In 2012-13 fiscal, 4,235 fraud cases involving Rs 8,590.86 crore were reported by banks as against 4,306 cases (involving Rs 10,170.81 crore) in 2013-14 and 4,639 cases (involving Rs 19,455.07 crore) in 2014-15, RBI said.

As many as 4,693 and 5,076 cases of fraud were reported in 2015-16 and 2016-17 involving Rs 18,698.82 crore and Rs 23,933.85 crore, respectively, it said.

"Cases of fraud reported to RBI are required to be filed by banks as criminal complaints with law enforcement ncies. information in respect of action being taken or alrey taken is t available reily," central bank said.

data assumes significance as banks are grappling with high-profile fraud cases involving absconding billionaire Nirav Modi and liquor baron Vijay Mallya among ors. large-scale fraud h prompted anti-corruption watchdog Central Vigilance Commission (CVC) to do an analysis and it came out with a report on top 100 frauds.

analysis focussed on modus operandi, amount involved, of lending (consortium or individual), amalies observed, loopholes that facilitated perpetration of fraud concerned and systemic improvement required to plug gaps in system and procedures.

frauds were classified and analysed for 13 sectors, including gem and jewellery, manufacturing and industry, agriculture, media, aviation, service and project, discounting of cheques, tring, information techlogy, export business, fixed deposits, demand loan and letter of comfort.

measures suggested by CVC included strengning standard operating procedures (SOPs) and monitoring system, among ors.

CBI in 2018 booked top officials of two public sector banks, a former CMD of IDBI Bank, former Aircel promoter C Sivasankaran, his son and companies controlled by him in connection with an Rs 600-crore loan fraud in IDBI.

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investigative ncy named 15 bank officials who worked at senior levels at IDBI in 2010 and 2014 when loans were sanctioned to companies controlled by Sivasankaran, in its FIR registered on a complaint from CVC.

Managing Director and CEO of Indian Bank, Kishor Kharat (who was n MD and CEO of IDBI Bank) and his counterpart in Syndicate Bank, Melwyn Rego (n deputy managing director in IDBI Bank) along with n Chairman-cum-Managing Director of IDBI Bank M S Raghavan, have been named in latest FIR filed by CBI.

Central ncies like Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) are also probing big-ticket bank fraud cases.