In order to control the banking frauds and bring the NPAs down, Finance Minister has asked the PSU banks to take appropriate legal actions against the wilful defaults and fraud cases. Banks must take these cases seriously There is no difference in fraud and wilful default as both are intentional in nature.
Financial Service secretary Mr. Sandhu Stated that providing wrong information, submission of fictitious documents and so on all are the part of the fraud cases, banks need to take these cases seriously, this will be help them in bringing NPAs down.
According to the reports Non-Performing Assets (NPAs) or bad loans of state-owned banks rose by 28.5 per cent from Rs. 1.83 lakh crore in March, 2013 to Rs. 2.36 lakh crore in September last year. Finance Minister stated that NPA is the biggest challenge now days faced by the banks. Mr. Chidambaram wants the bank to focus on the recovery of bad loans and control them.