Congress seeks govt rationalization on ‘mounting financial institution frauds’

The Congress requested the federal government to elucidate the mounting pattern of financial institution frauds from 2014-15 to 20120-21 as proven within the annual reports of the Reserve Bank of India (RBI) and alleged that this unchecked fraud would solely make “the nation’s journey from the promised $5 trillion economic system to a Rs 5 trillion financial institution fraud”.

These financial institution frauds, the All India Congress Committee (AICC) stated, confirmed how “the Modi government has weakened the banking system by permitting the fraudsters to both proceed functioning within the nation or leave the nation with out making any efforts to get well the fraud quantities”.

Referring to the RBI’s annual report for 2020-21 detailing the info round cases of financial institution frauds, AICC spokesman Gaurav Vallabh stated on Monday: “The cases and quantity of financial institution fraud has been on a speedy rise since 2014-15.

With 2020-21 alone exhibiting a complete quantity of fraud at Rs 1.38 lakh crore.” He stated whereas the RBI and official businesses tried to argue that financial institution fraud numbers for 2020-21 declined from the earlier yr, “one other facet to the story reveals that complete financial institution fraud quantity has been growing since 2014-15, and elevated at a CAGR of 57% between 2014-15 and 2019-20”.

Vallabh identified that the Rs 1.38 lakh crore fraud happened in 2020-21 regardless of a mortgage moratorium which was in impact until August 31, 2020, and restructuring initiatives had been in impact till December 31, 2020. “Even when we give attention to the final three years, the common fraud quantity elevated from Rs 10.5 crore in 2018-19 to Rs 21.3 crore in 2019-20 to Rs 18.8 crore in 2020-21.

The typical fraud quantity was Rs 4.2 crore in 2014-15. Therefore, the common fraud quantity has develop into 4x to 5x below Modi 1.0 and Modi 2.0,” he stated. The RBI information exhibiting an extended common time lag between the date of prevalence of frauds and the date of detection added to the worrisome pattern, he stated.

Vallabh requested the Centre: “Why has the federal government didn’t curb financial institution frauds within the final seven years? What’s the authorities doing to get well the quantity concerned in these financial institution frauds? And, how a lot quantity has been collected from these fraudsters who’re weakening our banking system?”

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