Lok Sabha Question No. 2516 (UNSTARRED), answered on 2016-03-11
Subject: Online Frauds
Ministry: FINANCE
Asked by: S. RAJENDRAN, RAMACHANDRAN MULLAPPALLY, KAPIL MORESHWAR PATIL, TAMRADHWAJ SAHU

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION NO 2516

TO BE ANSWERED ON THE 11 th  MARCH, 2016 / PHALGUNA 21, 1937 (SAKA)

## ONLINE FRAUDS

## 2516 . SHRI S.RAJENDRAN:

SHRI MULLAPPALLY RAMACHANDRAN:

SHRI KAPIL MORESHWAR PATIL:

SHRI TAMRADHWAJ SAHU:

Will the Minister of FINANCE be pleased to state:

- (a) whether  several  incidents  of  banking/ATM  frauds  and  other  irregularities  have  been reported in Public Sector Banks(PSBs) in the recent past;
- (b) if so, the details of such incidents/cases reported along with the amount involved therein during the last three years and the current year, bank and State/UT-wise;
- (c) whether  the  Government  has  conducted  any  inquiry  in  this  regard,  if  so,  the  details thereof  along  with  the  number  of  bank  officials  involved  and  the  action  taken  against them during the said period;
- (d) the details of the amount of Public Sector Banks which has turned into non-performing assets due to the said frauds/irregularities during the said period; and
- (e) the  remedial  steps  taken/being  taken  by  the  Government  to  check  such  incidents  in future?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI JAYANT SINHA)

(a) & (b): Cyber  Frauds  (Automated  Teller  Machine/Debit  Card,  Credit  Card  &  Net banking frauds) cases of Rs. 1 lakh and above reported by PSBs for the last three years and current year is given in Annex-1 .

(c)  to  (e): Cyber  Frauds  cases  of  Rs.  1  lakh  and  above  reported  by  PSBs  where  staff  is involved is given in Annex-2 .

Banks initiate/probe staff accountability and staff involvement in all the fraud cases and on completion  of  investigation,  commensurate  punishment  is  awarded  to  the  delinquent employees based on the seriousness of the wrongdoings as per Bank's disciplinary rules which includes censuring, administrative warning, suspension of the employees, reduction in scales of pay, monetary penalty and recovery of losses, compulsory retirement, termination from service, dismissal with disqualification from future employment etc.

RBI does not have information regarding the amount turned into NPA due to such frauds / irregularities. RBI has issued Master Circular on 'Frauds - Classification and reporting' vide RBI. DBS.CFMC.BC.No.1  /  23.04.001/2015  -16  dated  July  01,  2015 containing  all  the details/aspects  relating  to  frauds.  On  receipt  of  fraud  reports  from  banks,  various  aspects related to the frauds are examined and concerned banks are advised to report the case to CBI/  Police/  SFIO,  examine  staff  accountability,  complete  proceedings  against  the  erring staff expeditiously, take steps to recover the amount involved in the fraud, claim insurance wherever applicable  and  streamline  the  system  as  also  procedures  so  that  frauds  do  not recur.

*****

ANNEX-1

| Cyber frauds of Rs1 lakh and above reported by PSBs   | Cyber frauds of Rs1 lakh and above reported by PSBs   | Cyber frauds of Rs1 lakh and above reported by PSBs   | Cyber frauds of Rs1 lakh and above reported by PSBs   | Cyber frauds of Rs1 lakh and above reported by PSBs   | Cyber frauds of Rs1 lakh and above reported by PSBs   | Cyber frauds of Rs1 lakh and above reported by PSBs   | Cyber frauds of Rs1 lakh and above reported by PSBs   | Cyber frauds of Rs1 lakh and above reported by PSBs   |
|-------------------------------------------------------|-------------------------------------------------------|-------------------------------------------------------|-------------------------------------------------------|-------------------------------------------------------|-------------------------------------------------------|-------------------------------------------------------|-------------------------------------------------------|-------------------------------------------------------|
| Bank wise                                             | 2012-13                                               | 2012-13                                               | 2013-14                                               | 2013-14                                               | 2014-15                                               | 2014-15                                               | Rs in lakh April 15 - Dec 15                          | Rs in lakh April 15 - Dec 15                          |
|                                                       | No of cases                                           | Amount involved                                       | No of cases                                           | Amount involved                                       | No of cases                                           | Amount involved                                       | No of cases                                           | Amount involved                                       |
| Allahabad Bank                                        | 0                                                     | 0.00                                                  | 1                                                     | 3.14                                                  | 0                                                     | 0.00                                                  | 0                                                     | 0.00                                                  |
| Andhra Bank                                           | 1                                                     | 1.25                                                  | 0                                                     | 0.00                                                  | 1                                                     | 1.79                                                  | 0                                                     | 0.00                                                  |
| Bank of Baroda                                        | 1                                                     | 60.32                                                 | 0                                                     | 0.00                                                  | 4                                                     | 1840.98                                               | 11                                                    | 56.86                                                 |
| Bank of India                                         | 4                                                     | 16.49                                                 | 2                                                     | 5.14                                                  | 1                                                     | 3.36                                                  | 4                                                     | 37.10                                                 |
| Bank of Maharashtra                                   | 1                                                     | 105.00                                                | 4                                                     | 24.93                                                 | 1                                                     | 1.15                                                  | 1                                                     | 3.57                                                  |
| Canara Bank                                           | 2                                                     | 27.24                                                 | 1                                                     | 150.54                                                | 2                                                     | 62.72                                                 | 1                                                     | 1.12                                                  |
| Central Bank of India                                 | 1                                                     | 18.54                                                 | 20                                                    | 230.81                                                | 6                                                     | 72.19                                                 | 8                                                     | 51.54                                                 |
| Corporation Bank                                      | 7                                                     | 11.94                                                 | 14                                                    | 27.24                                                 | 3                                                     | 126.27                                                | 8                                                     | 57.98                                                 |
| Dena Bank                                             | 0                                                     | 0.00                                                  | 0                                                     | 0.00                                                  | 1                                                     | 2.00                                                  | 0                                                     | 0.00                                                  |
| IDBI Bank Limited                                     | 17                                                    | 187.52                                                | 2                                                     | 4.38                                                  | 3                                                     | 17.22                                                 | 14                                                    | 19.38                                                 |
| Indian Bank                                           | 3                                                     | 34.17                                                 | 0                                                     | 0.00                                                  | 6                                                     | 50.62                                                 | 3                                                     | 6.96                                                  |
| Indian Overseas Bank                                  | 0                                                     | 0.00                                                  | 0                                                     | 0.00                                                  | 1                                                     | 2.02                                                  | 0                                                     | 0.00                                                  |
| Oriental Bank of Commerce                             | 0                                                     | 0.00                                                  | 0                                                     | 0.00                                                  | 0                                                     | 0.00                                                  | 5                                                     | 9.34                                                  |
| Punjab National Bank                                  | 3                                                     | 39.78                                                 | 11                                                    | 94.23                                                 | 0                                                     | 0.00                                                  | 3                                                     | 10.16                                                 |
| State Bank of Bikaner & Jaipur                        | 1                                                     | 49.32                                                 | 0                                                     | 0.00                                                  | 0                                                     | 0.00                                                  | 0                                                     | 0.00                                                  |
| State Bank of Hyderabad                               | 8                                                     | 40.70                                                 | 0                                                     | 0.00                                                  | 0                                                     | 0.00                                                  | 0                                                     | 0.00                                                  |
| State Bank of India                                   | 0                                                     | 0.00                                                  | 1                                                     | 1.03                                                  | 2                                                     | 82.41                                                 | 3                                                     | 15.43                                                 |
| State Bank of Patiala                                 | 2                                                     | 34.36                                                 | 0                                                     | 0.00                                                  | 0                                                     | 0.00                                                  | 0                                                     | 0.00                                                  |
| State Bank of Travancore                              | 1                                                     | 1.49                                                  | 0                                                     | 0.00                                                  | 1                                                     | 1.34                                                  | 0                                                     | 0.00                                                  |
| Syndicate Bank                                        | 1                                                     | 7.60                                                  | 0                                                     | 0.00                                                  | 0                                                     | 0.00                                                  | 9                                                     | 34.85                                                 |
| UCO Bank                                              | 2                                                     | 29.28                                                 | 0                                                     | 0.00                                                  | 0                                                     | 0.00                                                  | 0                                                     | 0.00                                                  |
| Union Bank of India                                   | 5                                                     | 75.63                                                 | 2                                                     | 18.28                                                 | 4                                                     | 249.28                                                | 5                                                     | 28.34                                                 |
| United Bank of India                                  | 4                                                     | 203.03                                                | 0                                                     | 0.00                                                  | 0                                                     | 0.00                                                  | 0                                                     | 0.00                                                  |
| Vijaya Bank                                           | 1                                                     | 8.40                                                  | 0                                                     | 0.00                                                  | 2                                                     | 40.47                                                 | 0                                                     | 0.00                                                  |
| Grand Total                                           | 65                                                    | 952.06                                                | 58                                                    | 559.72                                                | 38                                                    | 2553.82                                               | 75                                                    | 332.63                                                |

| Cyber Fraud cases of Rs1 lakh and above reported by PSBs from April 2012 to December 2015 - Where Staff is involved   | Cyber Fraud cases of Rs1 lakh and above reported by PSBs from April 2012 to December 2015 - Where Staff is involved   | Cyber Fraud cases of Rs1 lakh and above reported by PSBs from April 2012 to December 2015 - Where Staff is involved   |
|-----------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------|
| Bank Name                                                                                                             | No of cases                                                                                                           | Amount involved in lakh                                                                                               |
| Allahabad Bank                                                                                                        | 1                                                                                                                     | 3.14                                                                                                                  |
| Andhra Bank                                                                                                           | 1                                                                                                                     | 1.79                                                                                                                  |
| UCO Bank                                                                                                              | 1                                                                                                                     | 17.38                                                                                                                 |
| United Bank of India                                                                                                  | 1                                                                                                                     | 19.57                                                                                                                 |
| Vijaya Bank                                                                                                           | 1                                                                                                                     | 1.25                                                                                                                  |
| Grand Total                                                                                                           | 5                                                                                                                     | 43.13                                                                                                                 |

ANNEX-2