At An Average, 1 Bank Staff Held For Fraud In Every 4 Hour
As per the data analysis revealed by the RBI (Reserve Bank of India), there is minimum 1 staff of the bank held or caught for the frauds in the bank at the average of every 4 hours and is being punished for the crime.
There were nearly 5,200 officers from the bank of the public sector who has been punished for bank fraud cases from the tenure between January 1, 2015, and March 31, 2017. The Reserve Bank of India document further mentions that these officials have been dismissed from their services, convicted and awarded penalties. The process is still on for such cases’ data compiling from April 2017 by the Central Bank.
The State Bank of India topped the chart of banks being involved in frauds with nearly 1,538 officials while the Central Bank of India and Indian Overseas Bank are ranked as second and third with 406 and 449 insiders found guilty of the crime. During the same time period, 184 officers were found guilty of the crime at PNB (Punjab National Bank).
Sanjay Kaushik, the Netrika Consulting Managing Director, the clients include major banks mentions that banks have ignored to introduce network-wide risk framework as they have been wasting their time in searching for frauds outside their walls.
Concerning on the issue, the Reserve Bank of India has been circulating the ways to report cases to banks while putting in place the system to curb the problem effectively. The latest series of circular, July 2016 states that an effective framework for preventing and tackling loan frauds has been implemented while compressing the long hours to detect the fraud.
The senior manager with the Multi-national bank, Bikash Gangadharan states that there should be multi-level authentication for the operation in the bank but unfortunately Indian banking system run on a hierarchical system where the senior authority’s order is not reviewed which makes the operations risky while making the bank vulnerable for frauds.
Tobby Simon of Synergia Foundation, a multi-disciplinary think-tank states that banks have failed to identify the loops and hasn’t taken any initiative to reduce the known harms or risks while making it difficult to point out the person involved in the process. He further stated that the top-most authority is at a greater fault.