Frauds in banks perpetrated by rich

Frauds are perpetrated more by the rich,mighty and powerful people than the poor is not a revelation.Further more frauds are under advances of banks are also not new. Some of the nonperforming assets  of banks are because of frauds, are also known and these happen with the connivance of top management  of banks are all established truths.  But the unfortunate part is that the losses on account of frauds are borne by poor depositors and other stake holders of banks is what the Dy Governor  has not revealed.The rich always steal and the poor attempts to steal when his times are bad and survival becomes difficult, is a fact and this is the issue to be dealt with by the authorities. Changing the definition of fraud will not make much sense, but changing the approach of banks to rich and poor in the grant of advances in particular can have some impact in reducing the fraud at least by the poor. The top management knows how the loans to rich turn into npas and finally get written off. Only the loans to poor are being seriously followed up, staff are made accountable and penalized Will the authorities seriously look into the real issues in the background of what has been made public now by none other than the regulator of the banks.

Dr.T.V.Gopalakrishnan

(This is in response to the observation "Fraud on banks , more by the rich,"  made by Dy Governor  k.C.Chakrabarty of the Reserve Bank that appeared in The Hindu Business line dated 27/07/13).