RBI is prohibited from disclosing borrower-wise credit information

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
LOK SABHA
UNSTARRED QUESTION NO-3473
ANSWERED ON- 08/08/2022

BANK LOAN FRAUDS

3473. SHRI RITESH PANDEY

Will the Minister of FINANCE be pleased to state:-

(a) the details of the top companies of the country which have taken loans fraudulently from public and private sector banks during the period of 2014-22;

(b) the details of the major companies which have taken loans of more than Rs. 100 crores which have been declared Non Performing Assets (NPAs) afterwards in the year 2014;

(c) whether action has been taken by the Central Bureau of Investigation for recovery of loans from the said companies and if so, the details thereof;

(d) the number of companies whose assets have been seized to recover the loans; and

(e) the details of the amount recovered from them and the details of the outcome thereof?

ANSWER

THE MINISTER OF STATE IN THE MINISTRY OF FINANCE

(DR. BHAGWAT KARAD)

(a) to (e): The Reserve Bank of India (RBI) has apprised that specific information on ‘top Companies who have defrauded the banks’ is not maintained by it. However, year-wise details of aggregate amount involved in frauds in respect of top 100 accounts, in public and private sector banks, based on the date of occurrence of frauds, are at Annex-1.

Under the provisions of section 45E of the RBI Act, 1934, RBI is prohibited from disclosing borrower-wise credit information, since the credit information submitted by a bank is treated as confidential and is not to be published or otherwise disclosed. However, year-wise details of gross non-performing assets pertaining to borrowers (which are companies) and having funded amount outstanding of Rs. 100 crore and above, in the public and private sector banks are at Annex-2.

Central Bureau of Investigation has apprised that recovery of loan is not within its purview. However, as per the inputs received from the Directorate of Enforcement (ED), it has recorded around 515 cases pertaining to bank frauds in public and private sector banks, under the provisions of Prevention of Money Laundering Act, 2002 (PMLA) during 2014 to 2022. Further, it has attached properties worth Rs. 47,099 crore (approx.) in bank fraud cases and has filed prosecution complaints before the special courts in 115 cases. Also, out of the aforementioned 515 cases, 137 cases pertain to the bank frauds, wherein amount involved is more than 100 crores in each case. In certain cases of loan fugitives, ED has also attached assets worth Rs. 19,312 crore, up to 29.7.2022, under the provisions of PMLA which is 85.50% of the defrauded amount of Rs. 22,586 crore in these cases.

As per RBI data, public and private sector banks have recovered Rs. 839,452 crore during the financial years 2014-15 to 2021-22 in NPA accounts, including those reported as frauds.

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Annex-1

Lok Sabha Unstarred question no. 3473, regarding “Banking Loan Frauds” Details of amount involved in frauds in respect of top 100 accounts, in public and private sector banks, based on the date of occurrence of frauds

(amount in crore Rs.)

Source: Reserve Bank of India

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