In response to an RTI application filed by economist and activist Prasenjit Bose, the Reserve Bank of India has now confirmed that in the last four years of the Modi Government, loan frauds have amounted to a whopping ₹55,000 crore more than in the previous five years of UPA-II under former Prime Minister Manmohan Singh.
Expressing his shock and dismay, Bose said, “Where are the investigating agencies? How many fraudsters have been arrested and prosecuted for their crimes? The Union Finance Ministry must be held accountable for this massive loot of money from the banks and undermining the public sector banking system.”
Not only have the number of fraud cases increased under the present regime, the amount involved in loan frauds have also grown more strikingly; it has in fact trebled. This points towards systemic corruption in sanctioning loans to large borrowers.
The PSBs account for 88% of the amount involved in Loan frauds.
The reply from the RBI, he maintains, highlights the following: