Economy Current Affairs - 2019

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India declines 4 places, ranked 40th in WEF’s financial development index

 India was ranked at 40th position in the World Economic Forum’s Financial imageDevelopment Report 2012, down four spots from last year. The index ranked 62 leading financial systems and capital markets. As per the report weak institutional and business environment in India is the reason behind the fall in ranking.

As per Financial Development Report 2012, the rankings were as follows:

  1. Hong Kong
  2. US
  3. UK
  4. Singapore
  5. Australia
  6. Canada
  7. Japan
  8. Switzerland
  9. Netherlands
  10. Sweden

Month: Categories: InternationalReports & Indices

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Frauds caused Rs 6,600 cr loss to Indian Economy

As per the first edition of Ernst & Young’s Fraud Indicators in India, different types of frauds may have caused Rs 6,600 crore loss to Indian economy in the last fiscal and banks were the most common victim in scamming cases.

As per the report:

  • 61 % of the frauds are insider enabled.
  • Magnitude of frauds in the second half of FY2012 increased by 36 % over the first half, while the number of frauds rose by a mere 8% during the same period.
  • Around 63 % of the total fraud cases in FY12 were reported in the financial services sector
  • Banks were the most common victim of frauds followed by insurance and mutual fund companies.
  • Losses incurred by banks due to fraud increased by 88%  in 2010-11 to exceed Rs 3,790 crore (more than Rs 2,010 crore in 2009-10).
  • 79% of the major fraud cases (majority cases above Rs 100 million) were due to involvement of senior management of the company owing to their authority and direct interference in the company’s decisions.
  • Delhi witnessed the largest number of fraud cases and highest aggregate losses by fraud in 2011-12.
  • Delhi recorded the highest average losses (Rs 0.8 billion) followed by Rs 5 billion for Andhra Pradesh.
  • Around 86 % of the total loss is cause by top 10 frauds amounting to a loss of Rs 5,670 crore
  • The survey noted that a proactive Forensic Data analysis can assist governments, regulatory bodies and corporate to battle the increasingly complex nature of frauds.

Month: Categories: Business, Economy & Banking

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