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
February 9,2020

New Delhi, Feb 9: Calling India a "long-standing friend", Sri Lankan Prime Minister Mahinda Rajapaksa on Saturday thanked Prime Minister Narendra Modi for visiting his country in the aftermath of last year's Easter Sunday terror attacks and outlined that New Delhi has always helped Colombo in its fight against terrorism.

In a joint press briefing with PM Modi, Mahinda Rajapaksa said he hopes that India will continue to help Sri Lanka fight terrorism.

Mahinda Rajapaksa expressed his gratitude to PM Modi for the neighbourhood first policy and the priority India gives to Sri Lanka.

"We had agreed that our cooperation is multifaceted and priority is given to a number of areas including security, economy, culture and social sectors. Part of our discussions centered on cooperation with regard to the security of the two countries. India has always assisted Sri Lanka to enhance our capacity, capabilities in intelligence and counter-terrorism. We look forward to getting continued support in this regard," he said.

"I thank the Prime Minister for visiting Sri Lanka in the aftermath of the Easter Sunday terror attacks that provided us with immense strength to come to terms with the tragedy. We also appreciate Prime Minister Modi's $400 million line of credit to enhance the economy of Sri Lanka and another $50 million line of credit for fighting terrorism," he added.

The Sri Lankan president urged PM Modi to consider further assistance to expand housing projectS all over Sri Lanka to benefit people from rural areas.

"The Prime Minister and I discussed how Sri Lanka and India can work together in the field of economy. India is among the world's fastest growing economies. I discussed with PM Modi how Sri Lanka could benefit from certain economic sectors where India is in a strong position," he said.

Concluding his statement, Mahinda Rajapaksa said, "India is our closest neighbour and a long-standing friend. The close historical links...provided a solid foundation to our ties."

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Agencies
January 21,2020

Kochi, Jan 21: A special court here on Tuesday sent two students, who were arrested under the Unlawful Activities Prevention Act (UAPA) case in Kozhikode last November, to the custody of National Investigation Agency (NIA) for a day.

The NIA court ordered that the duo, who were in judicial custody till now, to be produced before it tomorrow.

In its application, the NIA had said that the accused must be interrogated on the basis of digital records and sought custody of the duo for a week.

However, the defendant argued that no new evidence had been found against the accused and therefore no custody should be granted.

During an earlier hearing, the two had told the court, "We are not Maoists. We are CPI (M) activists. The Chief Minister, who says we are Maoists, should bring proof of whom we killed and where we bombed. In the last election, we have served as CPI (M), booth agents. We are the ones who went out to vote and pasted posters for the party."

The two were charged under Sections 20 (punishment for being a member of terrorist gang or organisation), 38 (offence relating to membership of a terrorist organisation) and 39 (offence relating to support given to a terrorist organisation) of the UAPA.

Allen and Thaha, students of law and journalism respectively of Kannur University, were taken into custody by the police from Pantheerankavu in Kozhikode on November 1 last year.

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News Network
May 28,2020

New Delhi, May 28: The Crime Branch of the Delhi Police will file 12 chargesheets against 536 Tablighi Jamaat members from three countries, officials said on Thursday.

Till now, the police has already filed chargesheets against 374 foreigners from 32 countries.

The officials said the charges against the Tablighi Jamaat members pertain to violation of visa rules, government guidelines regarding the Epidemic Disease Act and acting negligently in a way that was likely to spread infection of disease dangerous to life.

The Tablighi Jamaat, a religious organisation in Nizamuddin in South Delhi, had allegedly organised a congregation in March in violation of mass gatherings.

The Tablighi Jamaat’s Nizamuddin Markaz (centre) had become a coroavirus hotspot in the national capital.

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