- According to the data provided by the Finance Ministry,banks have reported 44,016 frauds in the last 11 years since 2008-09.The frauds being considered in the list are those involving ₹1 lakh or more.
- The ministry said that the government had issued a ‘framework for the timely detection,reporting,investigation relating to large value banks frauds’.
- The framework mandates that all bank accounts exceeding ₹50 crore, if classified as Non-performing assets(NPAs) be examined by banks from the angle of a possible fraud.
- NPA is a loan or advance for which the principal or interest payment remained overdue for a period of 90 days.
- Further,Public sector banks have also been advised to obtain a certified copy of the passport of the promoters/directors and other authorised signatories of companies availing loan facilities of more than ₹50 crore.
- Besides,the government has also enacted Fugitive Economic Offenders Act, 2018.The act seeks to confiscate properties and assets of economic offenders that evade prosecution by remaining outside the jurisdiction of Indian courts.
- Economic offences with a value of more than Rs 100 crores which are listed in the schedule of the Fugitive Economic Offenders Act come under the purview of this law.
2 min read