30 August,2019 08:11 AM IST | | Agencies
The number of cases of frauds reported by banks saw a jump of 15 per cent year-on-year basis in 2018-19, with the amount involved increasing by 73.8 per cent in the year, RBI's annual report showed. In FY19, banking sector reported 6,801 frauds involving Rs 71,542.93 crore as against 5,916 cases involving Rs 41,167.04 crore in 2017-18.
Among bank groups, PSBs, which constitute the largest market share in bank lending, have accounted for the bulk of frauds reported in 2018-19. It was followed by private sector banks and foreign banks.
In the reporting year, state-run banks reported 3,766 cases of frauds worth R64,509.43 crore as against 2,885 cases involving Rs 38,260.8 crore. The report said the average lag between the date of occurrence and its detection by banks was 22 months. "The average lag for large frauds, i.e. R100 crore and above, amounting to Rs 52,200 crore reported in FY19, was 55 months," it said.
RBI said it would coordinate with various agencies including the ministry of corporate affairs to examine the feasibility of interlinking various databases and information systems to improve the system of fraud monitoring and take necessary corrective regulatory and supervisory action.
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Rs 41,167 cr
Money involved in bank frauds in fiscal year 2018
The currency in circulation has jumped by a hefty 17 per cent to Rs 21.10 lakh crore as of March 2019, the central bank has said. It can be noted that one of the objectives of the note ban of November 8, 2016, was to encourage digital payments and bring down the use of cash.
RBI's contingency fund, useful in fighting any exigency, has plunged to R1,96,344 lakh crore as of June 30, after the R52,000 crore excess payout to the government, says the central bank's annual report for FY19. The RBI board has decided to transfer the excess reserves to government based on the Bimal Jalan committee report on the appropriate economic capital framework. In the annual report, the central bank makes it clear that as of June 30, 2019 it "stands as a central bank with one of the highest levels of financial resilience globally." The contingency fund as of June 30, 2018 was Rs 2,32,108 crore.
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