Bank Frauds Rose 416% Under PM Modi-led BJP Govt: Congress’ Kharge
The Congress party has launched a scathing attack on the PM Narendra Modi-led BJP government, accusing it of being responsible for the rising number of bank frauds in the country. Congress President Mallikarjun Kharge made the remarks while addressing a press conference in New Delhi, where he claimed that bank frauds have increased by a whopping 416% under the current government.
Kharge pointed out that the BJP government has been in power for the last 11 years, and during this period, bank frauds worth ₹6,36,992 crore have been reported. He went on to say that this is a staggering increase, and it reflects the “fraud and fakery” that runs in the veins of the current government.
The Congress leader also drew attention to the fact that after demonetization, the number of fake ₹500 notes has risen by 291%. This, he said, is a clear indication of the government’s inability to tackle the menace of counterfeiting and corruption.
Kharge’s remarks come at a time when the country is reeling under the impact of a series of high-profile bank frauds. The most recent one involves a ₹35,000 crore scam at the Punjab National Bank (PNB), which has been linked to a few high-ranking officials of the bank.
The Congress leader’s attack on the government has been seen as a clever move to deflect attention from the party’s own corruption scandals. However, it remains to be seen whether the BJP government will take any concrete steps to address the issue of bank frauds and corruption.
Rise in Bank Frauds: A Growing Concern
The increasing number of bank frauds in the country is a growing concern for the government, banks, and depositors. The recent scams at the PNB and other banks have raised questions about the effectiveness of the banking system and the regulatory framework.
The Reserve Bank of India (RBI) has been taking steps to improve the governance and risk management practices of banks. However, the scale of the frauds suggests that more needs to be done to prevent such incidents in the future.
The government has also set up a Special Investigation Team (SIT) to investigate the PNB scam and other bank frauds. The SIT has been given a free hand to probe the cases and take action against the guilty individuals.
What’s Behind the Rise in Bank Frauds?
Experts have identified several factors that have contributed to the rise in bank frauds. These include:
- Lack of effective regulation: The regulatory framework in place is criticized for being weak and inadequate. This has enabled fraudsters to exploit loopholes and perpetrate large-scale scams.
- Poor governance: Many banks have been accused of poor governance, which has led to a lack of transparency and accountability. This has created an environment where fraudsters can operate with impunity.
- Lack of data sharing: Banks have been slow to share data and information, which has made it difficult to track and prevent fraud.
- Technological advancements: The increasing use of technology has made it easier for fraudsters to carry out banking transactions and launder money.
- Corruption: Corruption is a major factor that has contributed to the rise in bank frauds. Many officials and employees of banks have been accused of being complicit in the scams.
The Way Forward
The government and the banking sector need to take a comprehensive approach to tackle the issue of bank frauds. This includes:
- Strengthening regulation: The regulatory framework needs to be strengthened to prevent frauds and ensure that banks comply with the regulations.
- Improving governance: Banks need to improve their governance practices and ensure transparency and accountability.
- Enhancing data sharing: Banks need to share data and information to track and prevent fraud.
- Implementing technology: The banking sector needs to adopt technology to prevent fraud and improve security.
- Taking action against corruption: The government and the banking sector need to take action against corruption and ensure that those found guilty are punished.
In conclusion, the rise in bank frauds is a serious concern that needs to be addressed urgently. The government and the banking sector need to work together to strengthen regulation, improve governance, and implement technology to prevent fraud and protect depositors’ interest.
Source: https://repository.inshorts.com/articles/en/PTI/a60a22f5-075c-4342-b8b1-9e15a57d6975
