India bank frauds triple to 360 billion rupees as credit scams swell
[MUMBAI] Bank frauds in India jumped threefold last year, with loans contributing to bulk of the cases, while discrepancies in digital payments declined.
The amount of frauds climbed to 360 billion rupees (S$5.4 billion) at the end of March this year, compared with 122.3 billion rupees a year ago, according to the Reserve Bank of India's latest annual report, which looked at cases above 100,000 rupees.
The jump was exacerbated by an addition of 122 cases amounting to a fraud of 186.74 billion rupees. These cases were removed from classification as fraud in previous years, but added back in the latest year after a court ruling.
The rise in cases underscores the challenges being faced by the banking regulator in the world's fastest growing major economy even as credit growth slows. This comes in the wake of a suspected fraud reported by IndusInd Bank earlier this month, which led to an upheaval at the lender, including top-level exits to rating cuts.
Frauds in private banks rose 270 per cent, while their state-owned peers, which accounted for bulk of the discrepancies, showed a 177 per cent growth in such cases.
Digital payment frauds fell to 5.2 billion rupees last fiscal year from 14.6 billion rupees in the previous year even as transactions through mobile applications and cards gain popularity. The central bank said it is planning a Digital Payments Intelligence Platform to curb payment related frauds.
Transactions using Unified Payments Interface – that allows users to transfer money instantly using their mobile phones – rose 30 per cent from a year ago to 260 trillion rupees. BLOOMBERG
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
11 hours ago
- Straits Times
Japan says no easy concession on US tariffs, seeks another round in June
Mr Ryosei Akazawa (third from right) briefing members of the media at the Japanese embassy in Washington on May 30, after his talks with US Treasury Secretary Scott Bessent and US Commerce Secretary Howard Lutnick. PHOTO: BLOOMBERG Japan says no easy concession on US tariffs, seeks another round in June WASHINGTON - Japan and the US on May 30 agreed to hold another round of trade talks ahead of the Group of 7 (G-7) summit in June, Japan's top tariff negotiator said, stressing that no deal would be without concessions on all Washington's tariffs, including on autos. Japan's Economy Minister Ryosei Akazawa met US Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick in Washington for 130 minutes in a fourth round of the trade negotiations. "We agreed to accelerate the talks and hold another round ahead of the G-7 summit in June, where the leaders from Japan and the United States are set to meet," Mr Akazawa told Japanese media gathered at the Japanese embassy in Washington. Japan faces a 24 per cent tariff rate starting in July unless it can negotiate a deal with the US. It is also scrambling to find ways to get Washington to exempt its automakers from 25 per cent tariffs on automobiles, Japan's biggest industry. Mr Akazawa said Japan's position has not changed that the tariffs are not acceptable and he is "strongly urging" the US to immediately reconsider and drop all the tariffs, including those levied on automobiles, auto parts, aluminium and steel. "If our requests to do that are met, we may be able to come to an agreement," Mr Akazawa told Japanese media gathered at the Japanese embassy in Washington. "But if that is not possible, then it will be difficult for us to agree to a deal." Japanese government sources said before the latest meeting that an immediate deal was unlikely, as they would never hastily seal a deal that would not benefit Japan, particularly the automobile sector. Mr Akazawa declined to give details of the latest discussions, but said trade expansion, non-tariff barriers and cooperation in economic security have been on the agenda at every meeting. Semiconductor supply chains and rare earths are among economic security topics, he added. He also said, while he was closely monitoring Nippon Steel's possible deal for US Steel, he could not yet comment on it due to a lack of any official announcement from the US government. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Business Times
a day ago
- Business Times
US asks judge to dismiss criminal charge over Boeing 737 Max crashes
THE US Justice Department asked a federal judge in Texas to dismiss its criminal case against Boeing over two fatal crashes of its 737 Max jets more than six years ago, despite objections of family members of some crash victims. The move disclosed on Thursday in a court filing is part of a proposed settlement prosecutors reached with the planemaker last week. The case had been set to go to trial on June 23. The government's agreement calls for the company to pay more than US$1.1 billion in fees and fines, while taking steps to strengthen internal quality and safety measures. In return, the company will avoid criminal prosecution. It is a notable reversal in the long-running criminal case against Boeing over two fatal crashes of its 737 Max jet in 2018 and 2019 that killed 346 people. Just last year, Boeing had agreed to plead guilty to the pending criminal conspiracy charge under a deal that was ultimately rejected by US District Judge Reed O'Connor, who has been overseeing the case since it was filed in 2021. BLOOMBERG
Straits Times
2 days ago
- Straits Times
Ex-Goldman banker Tim Leissner sentenced to two years in prison in 1MDB case
Former Goldman Sachs banker Tim Leissner leaving the court hearing in New York on May 29. PHOTO: BLOOMBERG Ex-Goldman banker Tim Leissner sentenced to two years in prison in 1MDB case NEW YORK - Former Goldman Sachs banker Tim Leissner was sentenced to two years in prison by a judge in a New York court on May 29, after he pleaded guilty in 2018 to his involvement in a multi-billion dollar scandal involving Malaysia's sovereign fund, 1MDB. Leissner's conduct was 'brazen and audacious,' judge Margo Brodie said during sentencing. While his cooperation with the government was taken into account, it did not make up for the harm caused by the corruption at the highest levels in several countries, the judge said. 'First and foremost, I offer my sincere apology to the people of Malaysia,' Leissner, 55, told the hearing, his voice breaking as he read a statement. 'I deeply regret my actions.' Goldman helped sell US$6.5 billion in bonds for 1MDB, which former Malaysian prime minister Najib Razak set up with the help of Malaysian financier Jho Low to promote economic development. US and Malaysian authorities have said US$4.5 billion was siphoned away, with some diverted to offshore bank accounts and shell companies linked to Low, who is now a fugitive. Leissner, former South-east Asia chairman for Goldman, became a US government witness in the case after his arrest in 2018. He pleaded guilty to a conspiracy to violate the Foreign Corrupt Practices Act and participating in a money laundering conspiracy, all tied to his role in the 1MDB scheme. He was allowed to remain free after he agreed to help the government in the investigation and testified against former banking colleague Roger Ng. Leissner met with the government on dozens of occasions, reviewing countless documents and communications he received related to the 1MDB scheme and other matters, according to a filing by prosecutors. Prosecutors requested the court impose a sentence below the applicable guidelines range due to Leissner's cooperation in the probe. Leissner told the court that he had lost his freedom, family and financial independence in the wake of the scandal. The former executive said his health also suffered, and that he took pills and lost the will to live. Goldman said in a letter to the court on May 21 that Leissner deceived his colleagues for years, culminating in the only criminal case filed against Goldman in its 156-year history. Goldman in 2020 paid a nearly US$3 billion fine and arranged for its Malaysian unit to plead guilty in US court. It also clawed back US$174 million in executive compensation. Malaysia's top court in 2022 upheld a guilty verdict against Najib for corruption and money laundering, sentencing him to 12 years in prison. The sentence was later halved by a pardons board chaired by Malaysia's former king. Ng has pleaded not guilty to charges of conspiring to launder money and violate an anti-bribery law. The former head of investment banking for Goldman in Malaysia was convicted in Brooklyn and sentenced to 10 years in prison, but transported to Malaysia in 2023 to assist probes there. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
