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TMI BlogLoans to Good Tax PayersX X X X Extracts X X X X X X X X Extracts X X X X ..... Loans to Good Tax Payers - News and Press Release Dated:- 23-7-2019 - News - The Government has taken comprehensive steps to reduce the incidence of frauds in banks. The steps taken include, inter-alia, the following: Government has issued Framework for timely detection, reporting, investigation relating to large value bank frauds to Public Sector Banks (PSBs), for systemic and comprehensive checking of legacy stock of their non-performing assets (NPAs), which provides, inter-alia , that- all accounts exceeding ₹ 50 crore, if classified as NPAs, be examined by banks from the angle of possible fraud, and a report placed before the bank s Committee for Review of NPAs on the findings of this investigation; examination be initiated for wilful default immediately upon reporting fraud to RBI; and report on the borrower be sought from the Central Economic Intelligence Bureau in case an account turns NPA. Fugitive Economic Offenders Act, 2018 has been enacted to deter economic offenders from evading the process of Indian law by remaining outside the jurisdiction of Indian courts. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... act provides for attachment of property of a fugitive economic offender, confiscation of such offender s property and disentitlement of the offender from defending any civil claim. PSBs have been advised to obtain certified copy of the passport of the promoters/directors and other authorised signatories of companies availing loan facilities of more than ₹ 50 crore and, decide on publishing photographs of wilful defaulters, in terms of Reserve Bank of India (RBI) s instructions and as per their Board-approved policy and to strictly ensure rotational transfer of officials/employees. The heads of PSBs have also been empowered to issue requests for issue of Look Out Circulars. For enforcement of auditing standards and ensuring the quality of audits, Government has established the National Financial Reporting Authority as an independent regulator. Instructions/advisories have been issued by Government to PSBs to decide on publishing photographs of wilful defaulters, in terms of RBI s instructions and as per their Board-approved policy, and to obtain certified copy of the passport of the promoters/directors and other authorised si ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gnatories of companies availing loan facilities of more than ₹ 50 crore. In order to bring transparency and accountability in the larger financial system, bank accounts of 3.38 lakh inoperative companies were frozen over the last two financial years. The impact of the above steps is reflected in RBI s Financial Stability Report (FSR) of June 2019. As per FSR, systemic and comprehensive checking of legacy stock of NPAs of PSBs for frauds has helped unearth frauds perpetrated over a number of years. Details of the number of cases and amount involved in frauds of ₹ 1 lakh and above that occurred during the last three financial years (FYs), reported by Scheduled Commercial Banks (SCBs), as per inputs received from RBI, are as under: FY of occurrence Number of cases Amount involved (in crore Rs.) 2016-17 3,927 25,884 2017-18 4,228 9,866 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2018-19 2,836 6,735 While repayment capacity and applicant s liabilities, including tax liabilities, are relevant for such appraisal and assessment, processing of applications for appraisal, assessment, sanction and disbursement is also dependent upon availability of requisite details and documents to enable the bank to arrive at a decision in its commercial judgement with due regard to the technical feasibility and economic viability of the proposal and the creditworthiness of the applicant, in accordance with the bank s Board-approved loan policy. Upon receipt of loan applications with requisite details and documents in support of technical feasibility and economic viability of the proposal and creditworthiness and repayment capacity of the applicant, banks appraise and assess the same for a decision regarding sanction and disbursement. This was stated by Shri Anurag Singh Thakur, Minister of State for Finance Corporate Affairs in a written reply to a question in Rajya Sabha today. ***** Annex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Details of frauds as reported by Scheduled Commercial Banks and select Financial Institutions based on date of occurrence (amount involved ₹ 1 lakh and above), primarily in loan accounts sanctioned during previous years Amounts in crore Rs. Bank Category FY 2016-17 FY 2017-18 FY 2018-19 Number of Frauds Amount Involved Number of Frauds Amount Involved Number of Frauds Amount Involved Aditya Birla Idea Payments Bank Limited Payments Bank - - - - 24 1.45 Comprehensive measures have been taken to p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... revent frauds including directions to banks to examine all NPA accounts above ₹ 50 crore from the angle of possible fraud, initiation of criminal proceedings, enactment of Fugitive Economic Offenders Act 2018, creation of Central Fraud Registry, empowering heads of Public Sector Banks to request for issue of Look Out Circular, establishment of the National Financial Reporting Authority, straight-through processing between Core Banking System and SWIFT and instituting in PSBs the system of obtaining certified copies of passport of promoters/directors of companies availing of loans exceeding ₹ 50 crore. Comprehensive measures have been taken to prevent frauds including directions to banks to examine all NPA accounts above ₹ 50 crore from the angle of possible fraud, initiation of criminal proceedings, enactment of Fugitive Economic Offenders Act 2018, creation of Central Fraud Registry, empowering heads of Public Sector Banks to request for issue of Look Out Circular, establishment of the National Financial Reporting Authority, straight-through processing between Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re Banking System and SWIFT and instituting in PSBs the system of obtaining certified copies of passport of promoters/directors of companies availing of loans exceeding ₹ 50 crore. Comprehensive measures have been taken to prevent frauds including directions to banks to examine all NPA accounts above ₹ 50 crore from the angle of possible fraud, initiation of criminal proceedings, enactment of Fugitive Economic Offenders Act 2018, creation of Central Fraud Registry, empowering heads of Public Sector Banks to request for issue of Look Out Circular, establishment of the National Financial Reporting Authority, straight-through processing between Core Banking System and SWIFT and instituting in PSBs the system of obtaining certified copies of passport of promoters/directors of companies availing of loans exceeding ₹ 50 crore. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Allahabad Bank Public Sector Bank 63 1,398.19 11 40.77 12 509.67 American Express Banking Corporation Foreign Bank 167 7.07 332 9.56 190 6.30 Andhra Bank Public Sector Bank 36 75.82 37 880.11 11 193.51 AU Small Finance Bank Limited Scheduled Small Finance Bank 1 1.45 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 0.25 5 0.35 Axis Bank Limited Private Sector Bank 217 666.34 231 691.78 195 670.40 Bandhan Bank Limited Private Sector Bank 24 1.51 21 1.22 6 0.91 Bank of America, National Association Foreign Bank 1 0.01 16 0.36 9 0.23 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bank of Bahrain and Kuwait B.S.C. Foreign Bank 2 0.23 - - - - Bank of Baroda Public Sector Bank 140 1,723.83 84 695.29 32 797.12 Bank of India Public Sector Bank 95 978.54 99 1,247.63 52 43.64 Bank of Maharashtra Public Sector Bank 34 391.29 32 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1,004.86 38 791.31 Bank of Nova Scotia Foreign Bank 1 0.13 - - - - Canara Bank Public Sector Bank 48 229.95 50 97.85 24 2.48 Catholic Syrian Bank Limited Private Sector Bank 9 7.88 25 118.02 8 0.70 Central Bank of India Public Sector Bank ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 59 153.85 56 11.08 45 2.53 Citibank N.A. Foreign Bank 189 8.79 203 8.81 168 4.88 City Union Bank Limited Private Sector Bank 3 4.38 10 48.30 1 0.25 Cooperatieve Rabobank U.A. Foreign Bank - - 2 61.53 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - Corporation Bank Public Sector Bank 52 123.46 12 97.13 5 0.05 DBS Bank Ltd. Foreign Bank 2 116.82 - - 3 0.13 DCB Bank Limited Private Sector Bank 2 0.11 8 1.51 7 33.17 Dena Bank Public Sector Bank 24 40.25 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11 232.57 3 2.71 Deutsche Bank AG Foreign Bank - - 8 0.13 3 0.04 Doha Bank QSC Foreign Bank 1 2.76 - - - - Equitas Small Finance Bank Limited Scheduled Small Finance Bank 4 0.19 17 2.18 7 0.35 ESAF Small Finance Bank Limited Non-Scheduled ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Small Finance Bank - - 4 0.18 2 0.05 Export Import Bank of India National Financial Institution 2 183.98 1 81.91 - - Federal Bank Limited Private Sector Bank 15 12.36 28 3.09 9 26.46 Fincare Small Finance Bank Limited Non-Scheduled Small Finance Bank - - 2 0.05 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 13 0.48 Fino Payments Bank Limited Payments Bank - - 3 0.90 13 0.64 Firstrand Bank Limited Foreign Bank 1 0.02 - - - - HDFC Bank Limited Private Sector Bank 312 42.21 330 54.39 273 425.20 Hongkong and Shanghai Banking Corporation Limited Foreign Bank 45 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0.94 298 6.51 178 3.26 ICICI Bank Limited Private Sector Bank 528 35.13 530 851.44 374 25.84 IDBI Bank Limited Private Sector Bank 91 989.98 94 99.84 99 59.22 IDFC Bank Limited Private Sector Bank 3 0.39 1 0.02 10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 41.90 Indian Bank Public Sector Bank 70 59.45 47 133.66 20 2.92 Indian Overseas Bank Public Sector Bank 53 1,115.98 34 372.08 30 2,272.89 IndusInd Bank Limited Private Sector Bank 16 1.68 36 109.59 51 9.40 Jammu and Kashmir Bank Limited Private Sector Bank 9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2.69 3 176.17 - - Jana Small Finance Bank Limited Non-Scheduled Small Finance Bank 13 1.16 14 0.98 19 0.74 Karnataka Bank Limited Private Sector Bank 4 87.26 11 21.55 2 0.03 Karur Vysya Bank Limited Private Sector Bank 20 24.26 22 30.84 7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2.66 KEB Hana Bank Foreign Bank 2 0.02 - - - - Kotak Mahindra Bank Limited Private Sector Bank 125 51.11 275 12.44 338 9.19 Krishna Bhima Samruddhi Lab Limited Non Scheduled Local Area Bank 1 0.02 - - - - Lakshmi Vilas Bank Limited Private Sector Bank 52 95.34 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 38 116.94 43 127.27 Nainital Bank Limited Private Sector Bank 6 0.48 1 0.31 - - North East Small Finance Bank Limited Non-Scheduled Small Finance Bank - - - - 1 0.18 Oriental Bank of Commerce Public Sector Bank 42 301.96 24 36.82 8 24.89 Paytm Payments Bank ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Limited Payments Bank - - - - 2 0.02 PT Bank Maybank Indonesia TBK Foreign Bank 1 17.78 - - - - Punjab and Sind Bank Public Sector Bank 22 117.07 3 2.19 - - Punjab National Bank Public Sector Bank 101 14,734.52 108 324.83 33 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 264.79 RBL Bank Limited Private Sector Bank 14 1.66 18 8.67 12 2.12 SBM Bank (Mauritius) Limited Foreign Bank - - 2 72.53 1 144.95 Small Industries Development Bank of India National Financial Institution 5 16.11 8 62.31 1 5.08 South Indian Bank Limited Private Sector Bank ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8 62.83 16 20.28 19 5.32 Standard Chartered Bank Foreign Bank 314 8.31 86 58.09 48 2.91 State Bank of Bikaner and Jaipur Public Sector Bank 5 0.24 - - - - State Bank of Hyderabad Public Sector Bank 6 7.65 - - - - St ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate Bank of India Public Sector Bank 469 444.28 618 294.56 236 59.69 State Bank of Mysore Public Sector Bank 12 4.24 - - - - State Bank of Patiala Public Sector Bank 6 0.45 - - - - State Bank of Travancore Public Sector Bank 15 0.67 - - - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - Subhadra Local Area Bank Limited Non Scheduled Local Area Bank 1 0.01 - - - - Suryodaya Small Finance Bank Limited Scheduled Small Finance Bank 5 0.25 7 0.13 - - Syndicate Bank Public Sector Bank 127 133.81 78 613.42 27 84.24 Tamilnad Mercantile Bank Limited Private Sector Bank 18 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 63.41 31 78.27 14 25.60 The Bank of Tokyo-Mitsubishi UFJ Limited Foreign Bank 1 1.24 1 0.19 1 0.03 The Dhanalakshmi Bank Limited Private Sector Bank 3 0.20 6 68.81 3 4.59 The Industrial Finance Corporation of India Limited National Financial Institution 1 23.92 - - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - - UCO Bank Public Sector Bank 31 233.77 41 103.25 27 2.89 Ujjivan Small Finance Bank Limited Scheduled Small Finance Bank 15 0.31 11 0.23 7 0.33 Union Bank of India Public Sector Bank 83 612.74 69 480.03 15 29.08 United Bank of India Public Sector Bank ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 29 402.85 15 2.22 20 4.60 Utkarsh Small Finance Bank Limited Scheduled Small Finance Bank 5 0.22 8 0.31 4 0.06 Vijaya Bank Public Sector Bank 32 16.58 22 145.96 2 0.94 Yes Bank Limited Private Sector Bank 14 39.61 15 169.30 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 26 2.01 Source: RBI ***** - News - Press release - PIB Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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