Report On Top 100 Bank Frauds Shared With CBI, Others, Says Watchdog

The analysis focused on the methods used, amount involved, type of lending and loopholes that led to banking frauds, along with recommendations to plug the gaps

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Report On Top 100 Bank Frauds Shared With CBI, Others, Says Watchdog

The Central Vigilance Commission has shared the bank fraud report with the ED and CBI


New Delhi: 

The anti-corruption body Central Vigilance Commission has completed a first-of-its-kind analysis of the top 100 banking frauds, including those in the jewellery and aviation sectors, and shared its findings with the RBI, the Enforcement Directorate and the CBI, Vigilance Commissioner TM Bhasin said today.

The analysis focused on the methods used, amount involved, type of lending (consortium or individual), anomalies observed and loopholes that led to the frauds, along with recommendations to plug the gaps in the system.

The fraud cases have been classified and analysed for 13 sectors including gem and jewellery, manufacturing and industry, agro, media, aviation and discounting of cheques, among others.

The methods used by the people in these 100 big loan fraud cases have been thoroughly analysed and loopholes have been identified, Mr Bhasin said.

"Based on the findings, various industry specific suggestions for systemic improvement have been given in the final report, which have also been sent to the Department of Financial Services and RBI (Reserve Bank of India), in order to plug the loopholes observed by the Commission," he said.

Mr Bhasin said the findings have been shared the ED and the CBI.

The measures suggested include strengthening of standard operating procedures and the monitoring system, and also highlighting the role of controlling offices, Mr Bhasin said.

The move assumes significance in the wake of high-profile bank fraud cases involving billionaire Nirav Modi and liquor baron Vijay Mallya, among others.

The report, which has also been shared with the Ministry of Corporate Affairs, carries analysis of large-value frauds reported since March 31, 2017.

Mr Bhasin said this analytical study was initiated by the CVC as a preventive measure to minimise loan frauds.

"The RBI has also confirmed to the commission that inputs given by the CVC are very useful and shall be used for systemic improvements to mitigate the risks," he said.

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