Central Vigilance Commission completes analysis of top 100 banking frauds in the country
Vigilance Commissioner TM Bhasin said the analysis was shared with the RBI, Enforcement Directorate, CBI and other agencies.
The Central Vigilance Commission on Tuesday said it has completed an analysis of the top 100 banking frauds and shared them with the Reserve Bank of India, the Enforcement Directorate and the Central Bureau of Investigation, among other entities, PTI reported, quoting Vigilance Commissioner TM Bhasin.
The analysis considered the modus operandi, amount involved, type of lending, anomalies and loopholes in the system which facilitated the fraud and the systemic improvements necessary to prevent this in future, the Central Vigilance Commission said. Frauds in 13 sectors – gems and jewellery, manufacturing and industry, agro, media, aviation, service and project, discounting of cheques, trading, information technology, export business, fixed deposits, demand loan and letter of comfort – were analysed.
“Based on the findings, various industry specific suggestions for systemic improvement have been given in the final report, which have also been sent to the Department of Financial Services, in order to plug the loopholes,” Bhasin told PTI. The solutions suggested include improving standard operating procedures and the system of monitoring.
“The RBI has also confirmed to the commission that inputs given by it are very useful and shall be used for systemic improvements to mitigate the risks,” Bhasin added. The vigilance commissioner said that while names of borrowers and banks have not been published in the report to maintain discreetness, “steps are being taken for all encompassing actions such as investigation by the premier investigative agencies”.
There have been several cases of high-profile bank frauds over the past few years. Billionaire Nirav Modi fled India after allegedly defrauding the Punjab National Bank of over Rs 13,000 crore, and liquor baron Vijay Mallya is a fugitive in the United Kingdom after failing to repay loans worth over Rs 9,000. Bhasin said that banks had expanded credit facilities to firms in the gem and jewellery sector within a short period of time, leading to frauds.