Frauds in the Indian banking system more than doubled in value during 2005, touching Rs 1,134.3 crore (11.34 billion) as against Rs 451 crore (Rs 4.51 billion) in the previous year, Lok Sabha was informed on Friday.
Finance minister P Chidambaram said in a written reply in the Lower House that 2,658 instances of banking frauds were detected in 2005 against 2,520 instances in 2004.
He said in 2003, the amount involved in frauds was Rs 623.6 crore (Rs 6.23 billion) on 2,193 incidents.
So far, 528 incidents of frauds had surfaced till March 31, which involved Rs 225.7 crore (Rs 2.25 billion), he said.
Chidambaram said the government had taken measures to prevent banking industry frauds.
"Banks have been advised from time to time to strengthen the vigilance and introduce preventive and prohibitive measures," he said.
He said this included introduction of concurrent audit, monitoring of working of internal inspection and audit machinery at the top-most levels, demarcation of duties and responsibilities, prompt disciplinary action and setting up of the Board for Financial Supervision and Serious Fraud Investigation Office.
He said the Mitra Committee recommendations, which were submitted to the RBI in 2001, were being implemented.
While those suggesting preventive action had been implemented by almost all the banks, other recommendations requiring legislative changes were not being carried forward in view of the existing legal provisions.
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