The number of bank fraud cases in India has nearly doubled during the fiscal year 2022-2023, reaching a staggering 13,530 cases. Meanwhile, economic offenders involved in the country’s largest loan frauds continue evading justice. One prominent case was the Punjab National Bank (PNB) scandal, where Nirav Modi had illicitly diverted Rs 14,000 crore from the bank before fleeing the country.
As part of their investigation into scams involving PNB for amounts as high as Rs100 crores, CBI recently undertook search operations at sites owned and operated by one particular Delhi-based firm.
Despite an alarming increase over recent months surrounding fraudulent activity within banks across India, especially during times when financial relief packages are being rolled out, reports show evidence pointing towards a nearly half reduction in damages caused; this significant drop saw only around Rupees 30,252 Crores stolen from lenders in the most recent case.
The rise in bank fraud cases highlights the ongoing challenges faced by the Indian banking sector in combating financial crimes. Despite efforts to strengthen security measures and tighten regulations, economic offenders involved in major loan frauds remain at large, posing a persistent threat to the financial system.
The CBI’s search operation targeting the Delhi-based firm signals the authorities’ commitment to investigating and cracking down on banking industry fraud. It serves as a reminder of the ongoing need for robust measures to prevent and detect such scams, safeguarding the interests of financial institutions and their customers.