In response to an RTI filed by noted economist and activist Prasenjit Bose, Reserve Bank of India (RBI) admits that both the number of frauds and the amount have spiraled in the last 4 years compared to theI 5 years of UPA-II between 2009 & 2014.
The RBI confirmed that the loan frauds have amounted to a whopping 55,000 crore in the last four years of the Modi Government- higher than in the previous five years of UPA-II under former Prime Minister Manmohan Singh.
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Expressing his shock, Bose said, “Where are the investigating agencies? How many fraudsters have been arrested and prosecuted for their crimes? The Union Finance Ministry must be held accountable for this massive loot of money from the banks and undermining the public sector banking system.”
Not only the number of fraud cases increased under Modi regime, the amount involved in loan frauds have also grown more strikingly; it has in fact trebled. It indicates about the systemic corruption in sanctioning loan to large borrowers.
Responding to the RTI, the RBI maintains and highlights the following facts:
There were 9,193 cases of loans frauds across nationalized public sector banks, foreign banks, private sector banks, other financial institutions, small finance banks and local area banks in the last four years (April 2014 to March 2018), involving an amount of 77,521 crore.
There were 10,652 cases in the previous five years (April 2009 to March 2014), involving 22,441 crore.
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Though, the number of loan frauds in the last four years under Modi regime is already edging toward the five-year total under the UPA-II, the amount involved gone up by 55,000 crore.
Cases of loan frauds in PSBs calculated 7,128 in the last four years, with an amount of 68,350 crore. In the previous five years there were 8,331 cases involving 19,113 crore. Loan frauds at PSBs total 1,927 involving 7,774 crore in the last four years. In the previous five years there were 2,005 cases involving 2,670 crore.