New Delhi, June 27: Reserve Bank of India on Thursday made a staggering revelation stating that Indian banks have been under-reporting frauds and revealed that 90.6 percent of the frauds were reported in 2018-19 that occurred between 2000 to 2018.

The RBI, in its latest edition of Financial Stability Report, suggested that nearly 40 percent of the under-reported frauds actually took place in the duration of three years between 2013 and 2016. Union Budget 2019 Predictions: Finance Minister Nirmala Sitharaman to Open Pandora Box on July 5; Here's What to Expect

It said, as reported by Economic Times, "The time-lag between the date of occurrence of fraud and the date of its detection is significant. It was observed that in many cases frauds being reported now were perpetrated during the earlier year."

Adding on, the apex money regulatory body mentioned, "As a fallout of this, the RBI is now reviewing its master direction on frauds and considering additional measures for timely recognition of frauds and enforcement action against violations."

Taking a tough note on the current situation, RBI was of the view that as on December 31, around 204 borrowers were not classified as defaulters by other banks, though being declared fraudulent by one or more banks. RBI Tells Banks to Accept Coins of All Denominations, Orders Message To Be Sent To All Branches Immediately

Explaining the checking procedure, RBI stated that they undertook a comprehensive study of the legacy stock of non-performing loans across state-run banks during 2018-19. This helped the RBI unearth those frauds perpetrated over several years and led to the increase in the number of frauds in recent years.

(The above story first appeared on LatestLY on Jun 27, 2019 11:04 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).