Top News

Bank Fraud Cases In Last 5 Years Recovery Percentage India: A news has come out from the Indian banking sector which has shocked the entire country. The figures presented by the government in Parliament have presented such a scary picture of bank frauds that the common man’s confidence in his savings may shake. According to government reports, various banks and financial institutions of the country have been defrauded of more than Rs 1.42 lakh crore in the last five years.

Mega-scam of Rs 1.42 lakh crore in 5 years

During the monsoon session of Parliament, the Finance Ministry revealed the raw details of frauds in the banking sector in the Rajya Sabha. Minister of State for Finance Pankaj Chaudhary said in a written reply that according to data received from the Reserve Bank of India (RBI), a total of bank frauds worth Rs 1,42,112 crore have been recorded in the last 5 financial years. This figure is not just of one or two banks, but includes many institutions like Public Sector Banks (PSBs), Private Banks, Foreign Banks, Small Finance Banks and Payment Banks.

In the name of recovery, just ‘cumin in the camel’s mouth’;

The most shocking thing in this entire revelation is the recovery rate. While on one hand the fraudsters embezzled more than Rs. 1.25 lakh crore, on the other hand very little amount has returned to the banks. According to the data, out of the total fraud amount, only 4.5% i.e. only Rs 6,389 crore has been recovered so far. This means that a large portion of fraud is still out of the system and bringing it back remains a big challenge for banks.

Crackdown on willful defaulters

The government has also made it clear that it is in no mood to abandon these fraudsters. Banks have started taking strict legal action against those who deliberately do not repay loans.

• Public sector banks (PSBs) have filed 15,577 recovery cases so far.
• Action is being taken under SARFAESI Act in 10,894 cases for confiscation of properties.
• The biggest thing is that till now a total of 7,173 FIRs have been registered in these fraud cases.

After all, why does recovery take years of delay?

This question is bound to arise in the minds of the general public that why the stolen money is not returned? According to experts and the government, it is important to recognize any fraud and officially classify it as &8216;Fraud&8217; It takes 2 to 5 years for banks to declare it.

Taking advantage of this delay, the accused often divert the money into the network of shell companies or transfer it to foreign banks. In many cases, anonymous properties or cryptocurrencies are purchased with this money, which delays the law in reaching them.

The lengthy legal process and court cases are also major obstacles in the path of recovery. These figures of bank fraud show that there is a strong need to further strengthen banking security in digital India so that the hard-earned money of the common people remains safe.