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Decline in Banking Frauds

Decline in Banking Frauds

Minister of State for Finance, Bhagwat Karad, informed Parliament about several initiatives to fight bank fraud. He laid emphasis on promoting digital payments in the country. He announced the launch of a National Cyber Crime Reporting Portal by the Ministry of Home Affairs. Allowing the public to report all types of cybercrimes. Additionally, a toll-free number is now available to provide assistance for lodging online complaints.

In the past ten years, the Directorate of Enforcement (ED) has handled 757 cases.  And 36 cases in the current year. In 10 cases, 14 individuals have fled the country. The number of Fugitive Economic Offenders is 6 out of 14. Whereas Proclaimed Offenders are 7. Confiscated assets worth Rs 15,805.91 crore have been recovered. Rs 15,113.02 crore amount has been restituted to public sector banks in such cases.

Regarding loan frauds, banks start recovery actions through various mechanisms like civil suits, Debts Recovery Tribunals, the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, and filing cases in the National Company Law Tribunal under the Insolvency and Bankruptcy Code. The ministry is also pursuing Negotiated settlements and compromises.

Karad mentioned that the number of loans approved under the Pradhan Mantri Mudra Yojana increased from 5.37 crore in FY22 to 6.23 crore in FY23.

The government is promoting digital payments across the country. With a special focus on remote areas. Offline digital payment solutions play a vital role in areas with limited connectivity.  Offline transactions do not require an additional factor of authentication. They are subject to a limit of Rs 200 per transaction, with an overall limit of Rs 2,000. This limit is applicable until the account balance is replenished. Limit Replenishment is allowed only in online mode with authentication.

Overall, these measures demonstrate the government’s dedication to strengthening fraud prevention, facilitating digital payments, and ensuring financial security for the public.

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