Significant gap in bank fraud occurrence and detection: RBI report

Agencies
June 28, 2019

New Delhi, Jun 28: Terming timely recognition an important aspect that can reduce the economic costs of frauds, the Reserve Bank of India on Thursday said that the country has seen a "significant" gap between occurrence and detection of bank frauds.

"The amount involved in frauds that occurred between 2000-01 and 2017-18 formed 90.6 per cent of those reported in 2018-19," the central bank said in its Financial Stability Report (FSR).

Giving further insight on the data, the RBI said that the systemic and comprehensive checking of legacy stock of NPAs of public sector banks (PSBs) for fraud during 2018-19 has helped unearth frauds perpetrated over a number of years.

"..and this is getting reflected in increased number of reported incidents of frauds in recent years compared to previous years," it added.

The RBI said that the recognition of date of occurrence is not uniform across banks and to ensure timely and assured detection of frauds in large accounts, the government issued a direction in February 2018 to all PSBs to examine all NPA accounts exceeding Rs 0.5 billion from the angle of possible fraud.

The FSR reflects the collective assessment of the Sub-Committee of the Financial Stability and Development Council (FSDC) on risks to financial stability, as also the resilience of the financial system. The June 2019 report also discusses issues relating to development and regulation of the financial sector.

In its report, the RBI has also highlighted the need for greater surveillance of large entities among the non-banking finance companies (NBFCs) and housing finance companies (HFCs) as their failure could have contagion affect, putting the entire sector into crisis. 

The recent development in the case of IL&FS and other NBFCs leading to a liquidity crisis like situation has prompted the RBI to respond.

The failure of a large HFC could erode 5.8 percent of the total Tier-I capital of the banking system, while that of a large NBFC could lead to loss of 2.7 percent of the Tier-I capital and a failure of one bank.

On the whole, the apex bank said that India's financial system remains stable while the resilience of banking sector has improved. The global geopolitical environment, however, poses challenges, it said. 

Reviving private investment demand remains a key challenge going forward while being vigilant about the spillover from global financial markets, the report said. 

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News Network
March 29,2020

New Delhi, Mar 29: The Centre on Sunday asked state governments and Union Territory administrations to effectively seal state and district borders to stop movements of migrant workers during lockdown, officials said.

During a video conference with Chief Secretaries and DGPs, Cabinet Secretary Rajiv Gauba and Union Home Secretary Ajay Bhalla asked them to ensure that there is no movement of people across cities or on highways as the lockdown continues.

"There has been movement of migrant workers in some parts of the country. Directions were issued that district and state borders should be effectively sealed," a government official said.

States were directed to ensure there is no movement of people across cities or on highways.

Only movement of goods should be allowed.

District Magistrates and SPs should be made personally responsible for implementation of these directions, the official said.

Adequate arrangements for food and shelter of poor and needy people including migrant labourers be made at the place of their work, the official said.

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News Network
April 27,2020

New Delhi, Apr 27: Prime Minister Narendra Modi on Monday held a video conference with chief ministers to discuss the situation arising due to the coronavirus pandemic in the country, which has been under a lockdown since March 25 to contain the spread of the virus, amid indications that the interaction would also focus on a graded exit from the ongoing lockdown.

This is Modi's fourth such interaction with state chief ministers since March 22 when he discussed coronavirus situation and steps taken both by the Centre and the states to contain the pandemic.

Two days later on March 24, Modi announced a 21-day nationwide lockdown. He extended the lockdown by 19 days on April 14, the last day of the initial three week shutdown, till May 3.

Sources in the government had on Sunday indicated that besides discussing the way forward in dealing with the pandemic, the prime ministers and chief ministers could also focus on a "graded" exit from the lockdown.

In a tweet on Monday, the Prime Minister's Office said Modi and the chief ministers will be discussing aspects relating to the COVID-19 situation.

In his monthly 'Mann ki Baat' radio address on Sunday, the prime minister said the country is in the middle of a 'yudh' (war) and asserted that people have to continue being careful and take precautions.

His note of caution came amidst gradual exemptions being granted by the Centre and states to revive economic activities.

"I urge you not to get overconfident. You should in your over-enthusiasm not think that if the coronavirus has not yet reached your city, village, street or office, it is not going to reach now. Never make such a mistake. The experience of the world tells us a lot in this regard," Modi said while referring to a popular Hindi idiom 'Sawdhani hati, durghatna ghati' (disaster strikes when you lower your concentration).

The Centre and the state governments have been giving gradual exemptions to boost economic activities as also to provide relief to people as some states want further relaxation in areas which have seen few or no coronavirus cases.

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News Network
February 9,2020

Panaji, Feb 9: RSS general secretary Suresh Bhaiyyaji Joshi on Saturday said that anybody who wants to work (in India) will have to do so with the Hindu community and for their empowerment.

Addressing a lecture on the topic "Vishwaguru Bharat, an RSS perspective" at Dona Paula in Panaji, Mr Joshi referred to his communication with an intellectual who had said that India should become a "supre-rashtra" in the year 2020.

"Anybody who wants to work (in India) will have to work with the Hindu commumnity by taking them along and for their empowerment. Hindus have witnessed the rise and fall of India since the time immemorial. India cannot be separated from (the) Hindu (community). Hindus have always been at the centre of this nation," Mr Joshi said in Marathi.

He also added that since Hindus are not communal or antagonist, "nobody should be reluctant to work for the Hindu community".

The RSS leader further said, "The world says India will become a superpower in 2020, but I remember my conversation with an intellectual who had said that India should become a super-rashtra (super nation) in 2020".

Goa Chief Minister Pramod Sawant was among those who attended the lecture.

"To create awareness and unity amongst Hindus does not amount to (taking) an action against others (community). No one should feel it that way. We can say with utter self confidence before the entire world that Hindus becoming strong won't result in destructive activities, but (such proposition) will work for the society and humanity," he added.

Invoking history, Mr Joshi said Hindus never invaded other countries. "Whatever wars (they had fought) were for self defence. Everyone has the right to self defence," he said.

"It is India's duty to teach the world to walk on the path of ''samanvay'' (coordination). Nobody else other than India and Hindus can do this," Mr Joshi said.

He said some communities in the world keep preaching that only their path is "great".

"But we are from the (Hindu) community which says that we have our own path so as you. When the world will accept this ideology, then all the issues would get solved. It is the duty of India to take the world on that path," he added.

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