Click to play videoMumbai: Banking frauds are not only increasing in number but also getting larger by the day.
The trend and progress report 2005-06 by the Reserve Bank of India states the amount involved in banking frauds have increased by as much as 77 per cent to Rs 1,381 crore from Rs 779 crore last year. The number of cases reported has also risen by 33 per cent to 13,914 from 10,450 cases last year.
The report attributes the sharp rise in frauds to an increase in housing loan frauds. The report says submission of fake documents to procure housing loans is a rampant practice.
The RBI has requested the state governments to help put a system in place, which can detect whether the same property has been mortgaged more than once. But very few states have expressed their enthusiasm yet.
Bill finance and cheque discounting were two other areas of concern. Drawing of Benami or false bills and clandestine removal of stock is a common modus operandi adopted by borrowers.
Laxity in checking documents and visiting the mortgaged property before sanctioning a loan have contributed to a rise in frauds.
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