Another flaw in PSBs

Containing frauds will need wider reform

The Reserve Bank of India’s (RBI’s) Annual Report, released on Tuesday, highlighted several issues of concern for the financial sector. However, one of those issues — which might also impact the retail saver — has generated considerable attention. This is the question of bank fraud, which, according to the Annual Report, is increasing swiftly. In 2019-20, instances of fraud involving sums of Rs 1 lakh or above increased by as much as 159 per cent when compared with such incidents in 2018-19. The RBI pointed out this included frauds that were spaced out over time and discovered only in 2019-20.