Question : Recapitalisation Plan for State Run Banks

(a) whether the Government have approved a recapitalisation plan for State run banks to the tune of Rs. 2 lakh crore, if so, the details thereof;

(b) whether this massive recapitalisation help to solve the Non-Performing Assets problem faced by the Public Sector Banks, if so, the reasons therefor;

(c) whether this recapitalisation plan will prove critical for revitalising India’s growth momentum, if so, the details thereof;

(d) whether an amount of more than 23 lakh crore have been lost by the banks due to fraud during the year 2016-17, if so, the action taken by the Government thereto;

(e) whether a large number of bank customers are being duped of their money due to cyber crimes, if so, the details thereof; and

(f) whether the Government has decided to take suggestions from cyber expert to stop cyber crime, if so, the details thereof?

The Minister of State in the Ministry of Finance


(a) to (c): With a view to ensure that Public Sector Banks (PSBs) remain adequately capitalised to support economic growth and remain compliant on regulatory parameters, Government has recently announced decision to recapitalise PSBs to the tune of Rs. 2,11,000 crore, through recapitalisation bonds of Rs. 1,35,000 crore and budgetary provision of Rs. 18,139 crore under Indradhanush plan over two financial years, and the balance through capital raising by banks from the market.
(d): The Reserve Bank of India (RBI) has informed that as per Fraud Monitoring Reports submitted by Scheduled Commercial Banks and select financial institutions, the amount lost on account of frauds during 2016-17 was Rs. 16,789 crore.
(e): RBI has apprised that it does not have any information in this regard.
(f): An inter-disciplinary Standing Committee on Cyber Security has been constituted by RBI, comprising, inter alia, of academia, Information Security audit / forensic / cybersecurity experts. The committee reviews, inter alia, threats inherent in the existing or emerging technology, and suggests appropriate policy interventions to strengthen cybersecurity and resilience framework in the banking system.
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