Money involved in bank frauds has increased: CBI chief

New Delhi, Aug 21 (IANS) The money involved in bank frauds has increased substantially over the years despite a decline in the number of such cases, Central Bureau of Investigation (CBI) chief Ranjit Sinha said Wednesday.

"While the number of bank frauds cases has shown a decline of 46.37 percent, the amount of money involved has quadrupled, showing an enormous increase of 324.27 percent," Sinha said while quoting a Reserve Bank of India analyses of the year 2009-10.

According to Sinha, while the number of fraud cases has shown a decreasing trend from 24,791 cases in 2009-10 to 13,293 cases in 2012-13, a decline of 46.37 percent, the amount involved has quadrupled from Rs.2,037.81 crores to Rs.8,646 crores, an increase of 324.27 percent.

Similarly, large value fraud cases involving Rs.50 crores and above, has also increased more than 10-fold from three cases in 2009-10 (involving an amount of Rs.404.13 crores) to 45 cases in 2013 (involving an amount of Rs.5,334.75 crores), he said.

He was addressing the 5th Annual Conference of CBI officers and chief vigilance officers of banks and financial institutions organised by the CBI.

The high amount of Non-performing Assets (NPAs) of public sector banks is cause for concern, said Sinha, and added that the CBI has already initiated inquiries in some of the big defaulters accounts.

He asked vigilance officers of public sector banks to play a proactive role in checking losses to the government exchequer and public money.

He pointed out that at times there appeared to be reluctance by banks to declare bad accounts as frauds despite clear cut manifestations. Sinha added that delay in reporting a fraud would adversely affect tracking and recovery of proceeds of crime.

Speaking at the event, C. Rangarajan, chairman, Economic Advisory Council to the prime minister, said discretionary powers in the financial sector must be exercised only within prescribed limits.

Rangarajan said both preventive vigilance and punitive vigilance are important factors in maintaining discipline in the banking and financial sector, and added that those who violate procedures and rules must be appropriately punished.


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