In four such instalments, RBI seeks to buy Rs 40,000 crore of long-dated sovereign papers, selling an equivalent amount of shorter duration securities. Aug 25, 2020, 17:36 PM IST
The mechanism, institutionalised for more than a decade, has contributed to the surge in banks’ retail loan books. Classifying loans as a fraud would mean a jump in provisions and impact the bottom line of banks in the June quarter.
RBI Governor tells banks that regulatory easing cannot be 'permanent' — only meant to deal with COVID-19. This would belie market expectations that bad loan provisions would not spike in the April-June quarter because of the moratorium on repayments allowed because of Covid-19. News. )
RBI said a total of 8,707 frauds involving Rs 1 lakh and above were detected during 2019-20 involving an amount of Rs 185,644 crore. However, what is striking is that while the number of frauds has been relatively decreasing over the years, the amount involved in these frauds has significantly increased.Public sector banks reported 4,413 frauds in FY20 amounting to a whopping Rs 1,48,400 crore, as compared to FY19, where 3,568 frauds involving Rs 63,283 crore was reported.RBI said that frauds have been predominantly occurring in the loan portfolio (advances category), both in terms of number and value.“There was a concentration of large value frauds, with the top fifty credit-related frauds constituting 76% of the total amount reported as frauds during 2019-20. If banks do not classify these loans as a fraud, they risk being pulled up for being lenient. ... latest news … New Delhi: The Reserve Bank's new guidelines on current account have made the foreign banks jittery, as they will not be able to garner nil-interest funds from corporate in the name of providing better services than their domestic counterparts, said a senior banker. Reserve Bank of India (RBI) Governor Shaktikanta Das on Thursday praised the central government’s response to the coronavirus pandemic in the country.
This shows that the amount involved in bank frauds has more than doubled as compared to the previous fiscal. CNN and the CNN logo are registered marks of Cable News Network, LP LLLP, displayed with permission. ) “We have not exhausted our ammunition, whether on rate cuts or other policy actions,” Das said. The ABBF functions as the first level of examination of all large value fraud cases before recommendations/references are made to the investigating agencies by PSBs. RBI observed that the average lag in detection of frauds is still long.