PNB scam and banking sector crisis: Will NFRA reduce fraud risk?

Setting up of the National Financial Reporting Authorityshould not be viewed as an indictment of ICAI

Fraud in business firms, particularly in financial institutions, is not uncommon. The Reserve Bank of India (RBI) data, which Reuters obtained through a Right To Information request, show that the public sector banks (PSBs) have reported 8,670 “loan fraud” cases, totalling Rs 612.6 billion, over the past five financial years up to 31 March 2017. RBI had flagged bank fraud as an “emerging risk” in its Financial Stability report published in June 2017. The PNB fraud has caught the attention of media because of its size Rs 127 billion) and the long period (seven years, since 2010) over which it