Transfin.

Frauds and Economic Crimes Rise As India's Economy Slows, Equity Flows Dip 78% in November

Frauds and economic crimes rise as India’s economy slows. Delayed salary payments main reason for retail loan defaults. Equity flows dip 78% in November.

 

ECONOMY

Frauds and economic crimes rise as India’s economy slows.

Bad News Nobody Asked For: India’s economy is witnessing a worrying trend: that of growing instances of fraud and economic crimes.

 

As per data from the RBI and the NCRB, both bank frauds and general economic offenses are on the rise. The rate of economic offences (as reported under the Indian Penal code) rose to 111.3 crimes per million people in 2017 from 110 in 2014. Forgery, cheating and fraud accounted for 86% of all these offenses.

 

Bank frauds have seen a seven-fold increase in just five years. And the overwhelming majority of these stem from malpractices at PSBs, which account for 90% of the fraud value and 55% of the number of frauds. Livemint

Delayed salary payments main reason for retail loan defaults.

You Are Not A-loan: As per a report by CreditMate, delay in salaries by employers is the top reason for retail loan defaults, accounting for 36% of the same. The report looked at payment patterns of 2 lakh borrowers from fintechs and NBFCs across India. The other top reasons for defaults were business downturns (29%), medical emergencies (13%) and loss of jobs (12%).

 

Delhi, Haryana and Arunachal Pradesh accounted for the highest defaults while the poorest-performing cities were Bhopal, Chennai and Bengaluru. Mumbai was credited as the city with the best repayment history. ToI

Equity flows dip 78% in November.

Eternal Sunset of the Hapless Kind: At INR1,311cr in November, equity mutual funds recorded their worst inflows in three-and-a-half years. This number is 78% lower than the same for the previous month. And despite the drop in equity inflows, the assets under management (AUM) for the industry soared to a record high of INR27Lcr. BS