Credit card default rose to Rs 4,072 crore or 1.94 percent at the end of March 2023, Parliament was informed on Tuesday. “As per the inputs received from RBI, in respect of defaults in credit cards, the gross non-performing assets (GNPAs) in credit cards was Rs 3,122 crore in March-2022 and Rs 4,072 crore in March-2023, while credit cards outstanding in March-2022 and March-2023 was Rs 1.64 lakh crore and Rs 2.10 lakh crore, respectively,” Minister of State for Finance Bhagwat Karad said in a written reply in Rajya Sabha.

GNPAs in credit cards have declined from 3.56 percent in March 2021 to 1.91 percent in March 2022, and stand at 1.94 percent in March 2023 against the scheduled commercial banks’ GNPA of 3.87 percent in March 2023, he said.

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Karad replying to another question, said, the total number of frauds as reported by the cooperative banks during FY23 was 964 with the amount involved to the tune of Rs 791.40 crore.

During FY22, the total number of frauds was 729 and the amount involved was Rs 536.59 crore as against 438 frauds involving Rs 1,985.79 crore in FY21, he said.

All cooperative banks are required to comply with the guidelines issued by the Reserve Bank of India (RBI) from time to time, he said.

Compliance to RBI guidelines issued to banks is examined on a sample basis during the supervisory assessment of the banks and any non-compliance observed is taken up with the banks for rectification apart from initiating supervisory/ enforcement action against the bank, as deemed fit, he said.

RBI and NABARD have informed that they undertake measures for strengthening fraud risk management in banks, including issuing caution advice, advising banks for rotation and mandatory leave of staff, compliance monitoring, cyber security advisories, etc., he said.

In a separate reply, Karad said, as per inputs received from public sector banks, several steps have been taken to ensure ethical debt collection practices.

Banks conduct an auction of the properties through online portals, as per their board-approved policy framed under the guidance of the fair practices code issued by the Reserve Bank of India, and applicable laws and regulations of the SARFAESI Act, 2002, he said.

Banks also issue public auction notices of properties in two newspapers, i.e. in English as well as in vernacular local language, he said.

Further, he said, multiple valuations are obtained from impaneled registered valuers to calculate the reserve price of the auction and the same is fixed with the approval of the competent authority.

Besides, he said, RBI as part of its supervisory assessment, reviews adherence to its guidelines, and non-compliance observed are taken up with banks for rectification apart from initiating supervisory/enforcement action, as deemed fit.

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