The Reserve Bank of India has decided to set up a Central Fraud Registry to check out the impact of frauds on banks’ financials. The setting up of such a registry will quicken the sharing of information about unscrupulous borrowers and help banks fight bad loans. The Registry will work under the supervision of the Central Bank of the country.

In India, as of now, there is no single database that lenders can access for all relevant details of previously reported frauds. The registry will make sure that all the needed information will be available to banks any time. When a bank is sanctioning a loan, it can make use of the registry by checking the credentials of a borrower.

The good news is that the CBI and the Central Economic Intelligence Bureau (CEIB) have shown interest in sharing their databases with banks. This will pave the way for a centralized searchable database that can be accessed by banks.

Statistics

• According to RBI data, gross NPAs (non-performing assets) of Public Sector banks crossed more than 2.5 lakh crore as of December 2014.
• The top 30 defaulters, sitting on bad loans, amounting to nearly 1 lakh crore, which is more than one-third of the entire NPAs of public sector banks.

GK Questions

• Which ban has recently announced it has lost hope to recover money from Vijay Mallaya’s King Fisher? United Bank of India. 
• The United Bank of India’s Headquarters is in ______? Kolkata.

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