Involvement of Bank Officials in Frauds Cases

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

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