Banking frauds witness 43.4% rise in 2012

NEW DELHI:  According to the Reserve Bank of India, the total money involved in bank-related scams has gone up from Rs 36.72 crore in 2011 to Rs 52.66 crore in calendar last year. This is a rise of 43.4 per cent in banking scams. However, the total number of cases was lower in 2012 at 8,322 (it was 9,588 in 2011). These cases relate to scheduled commercial banks and frauds related to ATMs/Debit Cards/Internet Banking and Credit Cards.

 

 

 

In that regard,the RBI has made plans required to improve security arrangements provided by banks. According to Namo Narain Meena, Minister of State for Finance, “On receipt of fraud reports from banks, various aspects related to the frauds are examined and concerned banks are advised to report the case to CBI/police/SFIO, examine staff accountability, complete proceedings against the erring expeditiously, take steps to recover the amount involved in the fraud, claim insurance...and streamline the system as also procedures so that frauds do not recur.”

 

 

 

The banks have also been asked to set up internal control systems that would help combat and control frauds. They have also been asked to set up enforcement measures that would ensure safety of credit card operations.