An astounding 578 cases of frauds with each of it exceeding Rs 1 crore were reported by public sector banks between the whole of 2012-13 and till October of the current fiscal, the Finance Ministry has revealed.
Minister of State for Finance Namo Narain Meena confirmed this in Rajya Sabha on Tuesday while replying to a question on whether crores of rupees were embezzled in state-owned banks. In his written statement in the Rajya Sabha, the minister informed that between 2012-13 and 2013-14 (up to October, 2013), 365 and 213 cases respectively of frauds of more than Rs 1 crore each, including embezzlement, were reported to RBI by PSU banks.
As part of instructions issued by the Central Vigilance Commission (CVC), cases below Rs 3 crore are referred to local or state police while those between Rs 3 crore and Rs 15 crore go to CBI for investigations. To another query regarding frauds by chit fund and ponzi schemes, Meena said 15 states and two Union Territories have passed 'protection of interest of depositors', Act.
These legislations include clauses for taking action against entities collecting money from public through false promises regarding unreasonable rates of interest on deposit.