PC: drealfmgrenada.com

proactive measures in detection and reporting of bank frauds



  • Government has issued instruction that all accounts exceeding Rs. 50 crore, if classified as NPAs, be examined by banks from the angle of possible fraud.
  • In addition, Public Sector Banks (PSBs) have also been advised to seek a report on the borrower from the Central Economic Intelligence Bureau, in case an account turns NPA.
  • Proactive action has been taken against wilful defaulters, with FIRs being registered by PSBs against 2,881 wilful defaulters.
  •  For enforcement of auditing standards and ensuring the quality of audits, Government has established National Financial Reporting Authority as an independent regulator.
  • Fugitive Economic Offenders Act, 2018 has been enacted in order to deter economic offenders from evading the process of Indian law by remaining outside the jurisdiction of Indian courts.
  • Pursuant to Government’s advice to PSBs, they have been obtaining certified copy of passport of the promoters/directors and other authorised signatories of companies availing loan facilities of more than Rs. 50 crore, and are ensuring rotational transfer of officials/employees on sensitive posts.

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