Rajeev Chandrasekhar's official website - Member of Parliament

 

GOVERNMENT OF INDIA
Ministry of Finance
DEPARTMENT OF FINANCIAL SERVICES

RAJYASABHA
UNSTARRED QUESTION N0.5003
TO BE ANSWERED ON THE MAY 22, 2012 / JYAISTHA 1, 1934
(SAKA)
Involvement of Bank Officials in Frauds Cases

 

5003: SHRI RAJEEV CHANDRASEKHAR:

Will the Minister of FINANCE be pleased to state:

(a)   the total number of officials of Public Sector Banks involved in various frauds and embezzlements prosecuted by courts in different parts of the country during the last three years, year-wise, State-wise and UT-wise and bank-wise; and

(b)   what action Government proposed to ensure reduction in involvement of bank officials in fraud cases?

ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI NAMO NARAIN MEENA)

 

(a)   The total number of officials of Public Sector Banks involved in various frauds and embezzlements prosecuted by courts in different parts of the country during the last three years, bank-wise and State-wise and UT-wise are given in Annexure-I & II respectively.

(b)   RBI as a part of its supervisory process alerts the banks about common fraud prone areas, modus operandi of frauds and the measures to be taken by them to prevent/reduce incidence of frauds in banks on an ongoing basis. During 2010-11, the RBI took several measures for strengthening the frauds monitoring mechanism in banks. Based on the recommendations of a Working Group on Information Security, Electronic Banking Technology, Risk Management and Cyber Frauds, and the feedback received from stakeholders, RBI has issued detailed guidelines vide its circular dated 29.4.2011. These guidelines are aimed at enhancing the governance of IT information security measures, cyber frauds, independent assurance about the effectiveness of the IT controls and related issues.

Besides above, based on a study made across banks to ascertain the policy and operating framework in place for detection, reporting and monitoring of frauds, RBI has vide its  circular  dated  02.06.2011  advised  the  banks  to  suitably  modify  their  policies  and streamline the operating framework. In order to ensure close monitoring and tighter controls so as to thwart frauds especially in housing loans, export finance, loans against fixed deposit receipts etc., the banks have been advised to structure their operating framework on three tracks viz. (i) detection and reporting of frauds (ii) corrective action and (iii) preventive and punitive action.

 

Annexure-I as referred to in reply to part (a) of Rajya Sabha Unstarred Question No.5003 for 22.5.2012

BANK-WISE INFORMATION ON INVOLVEMENT OF BANK OFFICIALS IN FRAUD CASES

Sl. No                                      

  Public Sector Banks 

Year 2009-10

Year 2010-11

Year
2011-12
(Till March 31)

1

Allahabad Bank

4

4

5

2

Andhra Bank

17

18

9

3

Bank of Baroda

4

5

7

4

Bank of India

4

Nil

2

5

Bank of Maharashtra

8

1

1

6

Canara Bank

20

14

3

7

Central Bank of India

4

8

5

8

Corporation Bank

Nil

3

1

9

Dena Bank

Nil

Nil

Nil

10

Indian Bank

1

4

2

11

Indian Overseas Bank

12

6

7

12

Oriental Bank of Commerce

1

1

3

13

Punjab National Bank

20

13

10

14

Punjab & Sind Bank

Nil

4

Nil

15

State Bank of India

9

13

20

16

State Bank of Mysore

Nil

4

7

17

State Bank of Patiala

1

2

3

18

State Bank of Bikaner & Jaipur

1

Nil

Nil

19

State Bank of Hyderabad

2

1

2

20

State Bank of Travancore

6

2

3

21

Syndicate Bank

2

8

6

22

Union Bank of India

6

10

15

23

UCO Bank

7

4

11

24

United Bank of India

2

3

2

25

Vijaya Bank

4

10

2

26

IDBI Bank

1

Nil

Nil

Total

136

138

12

Annexure-11 as referred to in reply to part (a) of Rajya Sabha Unstarred Question No. 5003 for 22.5.2012

STATE-WISE INFORMATION ON INVOLVEMENT OF BANK OFFICIIS IN FRAUD CASES

Sl. No.

 

NAME OF THE STATE

YEAR
2009-10

 

YEAR
2010-11

 

YEAR
2011-12
(TILL MARCH 31 ,2012)

1

Andaman & Nicobar

Nil

Nil

Nil

2

Andhra Pradesh

16

28

15

3

Arunachal Pradesh

Nil

Nil

Nil

4

Assam

3

1

2

5

Bihar

5

2

1

6

Chandigarh

6

1

3

7

Chhattisgarh

2

Nil

Nil

8

Dadra & Nagar Haveli

Nil

Nil

Nil

9

Daman and Diu

Nil

Nil

Nil

10

Delhi

12

13

8

11

Goa

Nil

1

12

Gujarat

3

2

3

13

 Haryana

2

3

2

14

Himachal Pradesh

Nil

Nil

Nil

15

J&K

4

Nil

1

16

Jharkhand

1

4

1

17

Karnataka

10

17

15

18

Kerala

13

3

5

19

Madhya Pradesh

8

2

6

20

Maharashtra

18

13

18

21

Manipur

Nil

Nil

Nil

22

Meghalaya

Nil

Nil

Nil

23

Mizoram

Nil

Nil

Nil

24

Nagaland

Nil

Nil

Nil

25

Orissa

Nil

7

6

26

Pondicherry

Nil

Nil

Nil

27

Punjab

2

3

4

28

Rajasthan

2

Nil

Nil

29

Sikkim

Nil

Nil

Nil

30

Tamil Nadu

13

14

19

31

Tripura

Nil

Nil

Nil

32

Uttar Pradesh

7

9

9

33

Uttaranchal

2

8

3

34

West Bengal

7

7

5

TOTAL

136

138

126