Recent unfolding of financial frauds amounting to billions of rupees have brought the credibility of #publicsectorbanks under the scanner. Unveiling of such frauds one after the other has not only unnerved the government, but the public at large as well. This also brings into focus the politician-bureaucrat nexus in facilitating ‘doing business with ease.’ Interestingly, scams begin under one regime and continue under the changed regime. This scenario does not augur well with the prevalent banking system in the country, especially at a time when the fiscal reforms introduced by the government have made it mandatory for the general public to keep money in banks and accounts are linked to #Aadharnumber.
Recent media reports based on the data mined by #Reuters make it discernible that within a short span of five-year period from 2012 to 2017, there were 8,670 bank fraud cases involving an estimated $9.58 billion. Some experts opine that the Nirav Modi type scam may thus be the tip of the iceberg as far as such rackets are concerned. This situation calls for #reengineering of fiscal #governance of public sector banks under the aegis of the #RBI and the Central government to ensure that systems are completely revamped.