Bengaluru police arrested four individuals from Gujarat for defrauding ₹12.5 crore from CRED by forging documents to access corporate banking credentials. The mastermind, an Axis Bank employee, exploited inactive accounts, involving others to impersonate CRED’s MD and create fake transactions. The fraud was discovered during account reconciliation, leading to swift action and arrests. Efforts to recover the stolen amount are ongoing.
The RBI’s Financial Stability Report warns of rising bad loans and declining capital buffers under stress scenarios, particularly in microfinance and consumer credit. It highlights risks from unhedged external borrowings, equity overvaluations, and retail loan slippages, while projecting 6.6% GDP growth in FY25, aided by rural consumption and government investments. Concerns persist over write-offs masking private banks’ asset quality and small finance banks facing higher retail impairments.
