20 July 2026

CBI bank fraud case investigation

This is a routine criminal investigation into bank fraud that serves as a practical example of corporate malfeasance and the challenges of financial oversight, but it lacks the policy or legislative significance to be a direct exam question.

Questions

1. Discuss the systemic risks posed by the 'evergreening' of loan accounts in the Indian banking sector and evaluate the role of investigative agencies in maintaining financial discipline. 150 words
   Attempt this — 150 words in 8 min

   0 / 150 words 8:00 Reset
2. Corporate financial fraud undermines the stability of the banking system and hampers credit flow to genuine borrowers. In light of recent instances of financial manipulation by corporate entities, examine the efficacy of existing regulatory frameworks in detecting and preventing the diversion of funds. 250 words
   Attempt this — 250 words in 11 min

   0 / 250 words 11:00 Reset

Prelims

1. In the context of banking operations, what does the term 'evergreening of accounts' typically refer to?

   1. A Extending new loans to borrowers to enable them to repay interest on existing non-performing assets
   2. B The practice of maintaining high liquidity ratios to ensure environmental sustainability
   3. C The process of converting short-term debt into long-term equity
   4. D A strategy to increase the green energy portfolio of a bank's lending assets