Frauds of Rs 41,000 crore fall in FY22

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Frauds of Rs 41,000 crore fall in FY22

Reports of cases worth Rs 41,000 crore in the year 2021 -- 22 have declined significantly, compared to Rs 1.05 lakh crore in the previous year in the banking sector.

According to official data, the number of cases in the private as well as public sector dropped to 118 in FY 22 from 265 in 2020 -- 21.

In the case of public sector PSBs, the total number of cases of over Rs 100 crore declined to 80 from 167 in FY'21 while falling to 38 in FY 22 for private sector lenders, as per the data.

In FY 21 it came down to Rs 28,000 crore from Rs 65,900 crore for PSBs. In FY 22, the reduction is from Rs 39,900 crore to Rs 13,000 crore for private sector banks.

In order to check frauds, the RBI has taken several steps including strengthening the Early Warning System EWS framework, strengthening governance and response system, adding data analysis for monitoring transactions, and the introduction of a dedicated Market Intelligence MI Unit for frauds.

In the past, State Bank of India SBI reported on one of the biggest bank frauds in the country, totalling Rs 22,842 crore, perpetrated by ABG Shipyard and their promoters.

The case involving the Rs 34,615 crore was much higher than the case involving Nirav Modi and his uncle Mehul Choksi, who allegedly defrauded Punjab National Bank PNB of around Rs 14,000 crore by the issuance of fraudulent letters of undertaking LoUs Last month, the Central Bureau of Investigation CBI has also booked Dewan Housing Ltd DHFL its former CMD Kapil Wadhawan, director Dheeraj Wadhawan and others in a new case that

A consortium of lenders led by the Union Bank of India has alleged that the company had availed of a credit facility to the tune of 42,871 crore between 2010 and 2018 from the consortium, but it has defaulted on payments from May 2019 onwards.

The accounts were declared non-performing assets at different points in time by banks.

The bank alleged that the promoters and others falsified the books of DHFL and dishonestly defaulted on repayment of dues and misappropriated a large portion of the funds.

The 17 banks that were in the consortium lost Rs 34,615 crore because of this.