Banks lost over Rs 5,500 crore to fraud in last four fiscals

The banking sector has lost a whooping Rs 5,517 crore due to frauds in the last four fiscals, CBI Director Ashwini Kumar said on Thursday.

The highest loss in the last four fiscals was Rs 1,883 crore in 2008-2009.

"He (Kumar) said as per some estimates the banking sector has lost as much as Rs 1,381 crore, Rs 1,194 crore, Rs 1,059 crore, and Rs 1,883 crore during 2005-2006, 2006-2007, 2007-2008 and 2008-2009 respectively, which involved nearly 733 frauds of Rs one crore and above," CBI Additional Director General (Media and Communication) and spokesperson Harsh Bhal said in a statement.

The CBI Director was speaking at the 2nd Conference of Central Vigilance Officers of public sector banks and financial institutions and CBI officers in New Delhi.

"Besides, the traditional loans and advances and the frauds in electronic payments are also on the increase. The technology-driven payments like Real Time Gross Settlement (RTGS), National Electronic Funds Transfer (NEFT), credit cards, ATM transactions, cell banking and internet banking are also showing glimpses of frauds," the statement said.

Addressing the gathering, Kumar said it was a collective responsibility to adapt to the changing technology and also to update knowledge and skills to develop systems in order to minimise losses due to frauds in the coming years.

- Non Banker.