The Reserve Bank of India may soon decide on lifting the weekly withdrawal limit from the ATMs, news agency reported. Economic Affairs Secretary, Shaktikanta Das said that only few people withdraw Rs 24,000 in a week or Rs 96,0000 per month, which is at present the current limit on withdrawing money from ATMs.
Das also said that the remonetisation excercise is nearly completed.
Meanwhile,the Central Bank has detected delays of up to four years by some banks in reporting financial frauds related to bad loans and has warned that bankers indulging in such acts could be charged for abetting the offence.
A senior official confirmed that Reserve Bank Deputy Governor S S Mundra brought up the issue at a recent meeting with bankers.
During the 2015-2016, loan-related frauds constituted nearly 92% of the total frauds reported by all banks. This was more pronounced in case of public sector banks and less in case of private and foreign banks.
Mundra pointed out that in almost all the cases it was observed that the exposure had got seasoned as an NPA for 3 to 4 years before the borrower was declared as fraudulent. As a consequence, the gap between the date of occurrence and detection has been widening. Further, the gap between first bank and the last bank reporting the borrowal account as fraud to RBI is also very long.
He explained that since fraud is a criminal offence any delay on the part of the bankers in initially red flagging an exposure and subsequently declaring it as a fraud will have far reaching implications on the employee conduct and internal governance standard.
"Banks and bankers could be charged for abetting the criminal offence. My call to you therefore, is to identify and declare the account as fraud without wasting time," he said.
The best course of action would be to follow the instructions in letter and spirit and take a responsible and proactive stand while attending consortium meetings.
As a penal measure borrowers who have committed a fraud in the account are debarred from availing bank finance from banks and NBFCs for a period of five years from the date of full payment of the defrauded amount. After this period, it is for individual institutions to take a call on whether to lend to such a borrower.
A senior official said any delay in reporting keeps other banks in the dark and they may also end up giving loans to these fraudsters.
Mundra said that anecdotal evidence and our transaction testing on the ground has suggested that this instruction is not always being followed.