1.85 lakh crore fraud with banks in a single year!

(PTI) Mumbai, Ta. Tuesday, August 25, 2020

With banks and financial institutions, Rs. 1.85 lakh crore has been misappropriated, which shows a 28 per cent increase in fraud compared to last year.

In the financial year 2018-19, Rs. 71,543 crore, which increased to Rs. 1,85,644 crore, according to an RBI report. More than half of the cases of irregularities with banks are with government banks.

The Reserve Bank of India released a report on Tuesday. According to the report, the number of bank irregularities covering Rs one lakh or more has more than doubled annually in the last financial year. In the last financial year, Rs 1,85,644 crore was misappropriated with banks against irregularities of Rs 71,543 crore in 2018-19.

Incidents of malpractice also increased by 28 per cent. In the last financial year, 8,707 cases of irregularities were registered against 6,799 cases in 2018-19, according to the Reserve Bank's annual report. Such cases of malpractice increased by 159 per cent in terms of value, according to RBI data. The number of cases of irregularities and the amount involved is significant, the RBI said.

According to the RBI report, out of the total cases of irregularities in financial institutions and banks, 50.7 per cent were reported in government banks. Cases of fraud with banks and financial institutions have increased at a time when the country's financial sector has been facing the problem of non-performing assets for several years.

According to experts, lenders may face more stressed assets in the near future due to the Corona virus epidemic and the economic downturn. Out of the total cases of irregularities, 80 per cent, or Rs 1,48,400 crore, were with government banks. Irregular Rs. 3,066 cases worth Rs 34,211 crore were registered. Excessive irregularities in terms of both value and quantity were found in the portfolio of loans.

Of the total incidents of irregularities that came to light in the last financial year, the top fifty cases related to credit accounted for 76 per cent of the total amount stuck in irregularities. Between April and June 2020, 1558 cases of irregularities worth Rs 28843 crore were caught. Due to increasing irregularities in banks and non-performing assets (NPAs), banks are reluctant to take risks in providing loans.