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Kisan Credit card Frauds

Our Experts

Sanjay Kaushik
Sanjay Kaushik

Managing Director

CFE, CII, FCIISCM, CATS, CCPS, CFAP

Sanjay Kaushik
Col Sanganagouda Dhawalgi

Executive Director-FI

CFE

Sanjay Kaushik
Gaurav Jain

Associate Director

CFE

Kisan Credit Card Fraud

Although KCC was a noble idea to help needy farmers, it has become a tool that has been misused by many. A disturbing trend has been observed that has been causing severe concern to banks and regulators alike where funds borrowed under KCC schemes are often being diverted for non-agriculture activities. These include estate investment, other business activities, purchase of expensive cars and jewellery, higher education of children in foreign countries, indigenous lending, etc.

Revolving cash facility, which entails unlimited withdrawals and repayments as long as it is within the prescribed limits, makes KCC vulnerable to money laundering. KCC could also be potentially used for “nesting” due to lack of proper documentation requirements. A customer can facilitate payments or deposits on behalf of someone else, which could easily be crime proceeds.

 

Our KYC screening services offer the complete range of security measures such as:

  • Customer identification program (CIP)
  • End-user usage monitoring, as well as
  • KCC policies and procedures strengthening

Netrika’s smart use of data analytics along with on field expertise in investigations can help banks/NBFCs detect red flags at an early stage and fight potential money laundering hazards.

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