Gold Silver Reports – Bank Fraud Prompts India to Set Up Panel to Prevent Scams — India’s central bank set up a panel to study and recommend ways to prevent the increasing incidents of frauds in the banking system after the nation’s second-largest state lender alleged that a diamond merchant had fraudulently obtained $2 billion in loans.
Bank Fraud Prompts India
The Reserve Bank of India panel, to be headed by Y. H. Malegam, will look into factors that have led to a jump in such incidents in banks as well as suggest measures needed to curb and prevent them. It will also study the effectiveness of various types of bank audits, the central said in a statement. Separately, Finance Minister Arun Jaitley, said the supervisory agency needs to ensure that such stray incidents don’t become a practice.
Read More: Indian State Banks Continue Dropping as Fraud Impact Widens
India’s biggest banking fraud is expanding as more lenders disclose exposure to the allegedly illegal transactions by Nirav Modi. Punjab National Bank last week said it detected a $1.8 billion fraud at a single branch in the nation’s financial hub. A few days later UCO Bank said about $411 million was at risk from the transaction.
Read More: PNB-Nirav Modi Fraud: Understanding The Deceptively Low Risk World Of Buyer’s Credit
RBI on Tuesday reiterated its confidential instructions and mandated the banks to implement measures to strengthen the SWIFT operating environment in banks within its stipulated deadlines. – Goldman Neal Bhai Reports India
