Banking frauds doubled in 2005 | india | Hindustan Times
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Banking frauds doubled in 2005

So far 528 incidents of frauds had surfaced till March 31, 2006, which involved an amount of Rs 225.7 crore.

india Updated: May 19, 2006 15:05 IST

Frauds in the Indian banking system more than doubled in value terms during 2005, touching Rs 1,134.3 crore as against Rs 451 crore in the previous year, Lok Sabha was informed on Friday.

Finance Minister P Chidambaram said in a written reply in the lower house that a total of 2,658 instances of frauds were detected in the Indian banking system in 2005 against 2,520 instances in 2004.

He said in 2003, the amount involved in frauds was Rs 623.6 crore on total 2,193 incidents.

Giving out figures for the current year, he said so far 528 incidents of frauds had surfaced till March 31, 2006, which involved an amount of Rs 225.7 crore.

Chidambaram said the Government had taken several measures to prevent frauds in the Indian banking industry. "Banks have been advised from time to time to strengthen the vigilance set up and introduce preventive and prohibitive measures," he said.

He said this included introduction of concurrent audit, monitoring of working of internal inspection and audit machinery at the top-most levels, demarcation of duties and responsibilities, prompt disciplinary action and setting up of the Board for Financial Supervision and Serious Fraud Investigation Office.

He said the Mitra Committee recommendations, which were submitted to the RBI in 2001, were also being implemented. While those suggesting preventive action had been implemented by almost all the banks, other recommendations requiring legislative changes were not being carried forward in view of existing legal provisions.