PSU banks report fraud cases worth Rs 6175, till Jan

RBI directs banks to report such cases to CBI/ Police/SFIO

Public sector banks have reported fraud cases of Rs 1 lakh and above amounting to Rs 6,174.83 crore till January during the 2013-14 financial year, Parliament was informed today.

For the entire 2012-13, such cases had amounted to Rs 8,232.67 crore; Rs 4,069.80 crore in 2011-12 and were at Rs 2,606.01 crore in 2010-11.

In a written reply to the Lok Sabha, Minister of State for Finance, Namo Narain Meena said: "In order to make third parties and professionals accountable, who have played a vital role in credit sanction/disbursement or facilitated the perpetration of frauds, banks have been advised to report to Indian Bank's Association.

"IBA in turn will prepare caution lists of such parties for circulation among the banks."

The Reserve Bank has directed banks to report cases of fraud to CBI/police/SFIO.

The minister also said that RBI, as part of its supervisory process, sensitises banks from time to time about common fraud prone areas, issues caution advises in respect of borrowers who have defaulted banks.

RBI has also advised banks to review working of internal inspection and audit machinery, introducing a concurrent audit system and constitution of special committee of the board to exclusively monitor frauds of Rs one crore and above.

In reply to a separate question, Meena said as many as 29 cases of bank robbery were reported across the country, amounting to Rs 681.55 lakh (until April-September of FY14).

"Banks have been advised from time to time to enhance security arrangements at their branches and ATMs. These include coverage of ATM sites by CCTVs and ensuring adequate training of security staff posted at ATMs," he said.

Banks were advised in April 2012, after certain instances of robberies/armed robberies, to review and strengthen the security arrangements at their branches and ATMs, he added.