NEWS & ADVICE : SAVINGS ACCOUNTS
Indian Banks lost Rs 4,448 cr to fraud in FY11-12: FM
By Neelima Shankar
Dec 17, 2012
Print    Email    RSS   

Indian banks lost a huge amount of Rs 4,448 crore to frauds in the last financial year. Finance Minister in response to the parliament query said, "According to the Reserve Bank of India's (RBI) record, the incidents of fraud reported by the banks during FY12 were 5,569 cases involving an amount of Rs 4,448 crore".

The statement mentioned that major frauds included of loans sanctioned for purpose other than the purpose of which they were sanctioned, lack of diligence by the banks and direct sales agents, fake tittles submitted as collateral security and disposal of assets created by loans without knowledge of the bank.

"The banks had not carried out the pre-sanction inspection of property for the acquisition of which the loan was being sanctioned to ascertain if the unit/ property really existed", as mentioned in the statement.

In some cases, borrowers submitted fake documents related to ‘know your customer' and could not be found at the given addresses after the release of the loan amount. Banks was also duped by submission of fake and fabricated financial statements and salary slips of the borrowers.


 


(Comments Posted : 0) Post Your Comments
Show All Comments
COMPARE QUICKLY
 Select a product:
 

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
Carnival of Indian Personal Finance Blogs #1
Credit profile and its effect on loan...
Carnival of Indian Personal Finance Blogs #4
12 point conduct checklist for bank and...
Carnival of Indian Personal Finance Blogs #6


MY ACCOUNT NO IN SBI IS 36120836791. WHICH IS MY...
my account has old new no open
Balance
can i know my account balance?
how can I change my bank account mobile number
sir my new mobile number .7378547151 my account...

NEWS THIS WEEK
HDFC bank adjudged as the Best private bank in India Feb 16, 2015
HDFC reported an increase of 20% in its net profit Feb 16, 2015
ICICI bank launched Flash remit facility Feb 13, 2015
BOM launched new savings deposit scheme for HNI customers Feb 12, 2015
BMB bank to have a total of 80 branches by the March end. Feb 10, 2015
News Archive