Fraud cases exceeding Rs 100 crore in public sector banks (PSBs) dropped from 167 to 80 in FY22, while those over Rs 100 crore for private sector lenders dropped from 98 to 38.
More than Rs 100 crore in fraud in the banking industry was reported in 2021-22, although that’s a huge drop from the previous year’s Rs 1.05 lakh crore in reported instances.
Official statistics show that the number of fraud cases in private and public sector banks decreased from 265 in FY 2020-21 to 118 in FY2022.
There were 80 incidents of fraud exceeding Rs 100 crore in public sector banks (PSBs) in FY’22, a decrease of 171 from last year. There were 38 cases of comparable fraud in private-sector lenders.
From FY ’21 to FY’22, PSBs’ total sum of Rs 65,900 crore has decreased to Rs 28,000 crore. By the end of FY’22, private sector banks will have slashed their losses from $39,900 million to $13,000 million.
The RBI intends to combat fraud by enhancing the effectiveness of its Early Warning System (EWS) framework, enhancing its fraud governance and response system, and increasing data analysis for transaction monitoring. It has also set up a dedicated Market Intelligence (MI) Unit to focus on fraud detection and prevention efforts.
The Reserve Bank of India (RBI) and Reserve Bank Information Technology Private Limited conducted a study in 2021-22 on the implementation of the EWS framework in selected Scheduled Commercial Banks (ReBIT).
Additionally, ML algorithms were used to test EWS’s efficacy in a small number of institutions.
One of the largest bank frauds in the nation was performed by ABG Shipyard and its promoters earlier this year, according to the State Bank of India (SBI).
Nirav Modi and his uncle Mehul Choksi are accused of defrauding Punjab National Bank (PNB) of around Rs 14,000 crore via bogus Letters of Undertaking (LoUs).
With a new case involving Rs 34,615 crore, the Central Bureau of Investigation has charged Dewan Housing Finance Ltd. (DHFL), its former CMD Kapil Wadhawan, director Dheeraj Wadhawan, and others.
According to a group of lenders headed by Union Bank of India, the business took out a total of Rs 42,871 crore in loan facilities from the group between 2010 and 2018 but defaulted on repayments starting in May 2019.
Banks deemed the accounts to be non-performing assets at various stages. Promoter and others are accused of siphoning and misappropriating huge amounts of money from DHFL by manipulating its accounting, and then dishonestly defaulting on payments.
The consortium’s 17 banks together suffered losses of Rs 34,615 crore as a result of this.
