190 Indian Banks Raided in Fraud Crackdown — Can Bitcoin Be an Alternative?

7 November 2019, 07:06 GMT+0000
Updated by Kyle Baird
7 November 2019, 07:55 GMT+0000
India’s Central Bureau of Investigation (CBI) has performed a targeted raid on about 170 of the country’s banking locations in an attempt to crack down on fraud, which is reportedly rife in the banking sector. This once again leads to thoughts on how Bitcoin could be a financial alternative that avoids this – especially in a country which is anti-cryptocurrency.
It is reported that the fraud cases, of which there are 42 ongoing, amount to nearly $1 billion. As many as 1,000 CBI officers knocked on doors of the accused to collect evidence and question them across 16 states and at 15 nationalized banks. With banking fraud rife in the country, one way in which a population could fight back would be to look towards decentralized cryptocurrencies such as Bitcoin. However, India is one country that has taken a rather hardline stance towards the integration of cryptocurrencies leaving citizens with minimal options or alternatives. India Bitcoin

Hitting Banks Hard

The raid by the CBI has now been labeled one of the largest coordinated searches in India this year, outlining the magnitude of the problem. “Out of these 42 cases, there are 4 cases of more than Rs 1,000 crore ($140 million) and 11 cases of fraud amount of Rs 100 crore to Rs 1,000 crore ($1.4 – 140 million),” a statement issued by the CBI read. “During searches, incriminating documents have been recovered so far.” It is further explained that most of the loan fraud cases were detected at 15 banks, which also includes India’s largest government-owned lender. What’s more, this raid comes less than a month after the former managing director of Punjab and Maharashtra Co-operative (PMC) Bank, Joy Thomas, was jailed in an alleged 43.55 billion rupees ($610 million) fraud case. india bitcoin ban

An Unobtainable Alternative in Bitcoin

As global financial uncertainty continues to permeate the globe, with geopolitical issues affecting Hong Kong; economic collapse striking Venezuela, and even threats of a recession looming in the first world, eyes are turning to Bitcoin, as BeInCrypto has touched on previously. The decentralized financial system offers a monetary structure that is free from political interference, not attached to traditional markets and concerns – and especially poignant for India – un-affected by fraud. The issue is that the Indian government, just behind China, has been one of the hardest on cryptocurrencies, trying to stamp out access to Bitcoin and others. India has been ambiguous in its cryptocurrency regulations, but more than once, rumors of a nationwide ban on Bitcoin have been circulated. This denial of a fundamental financial alternative in the face of a corrupt and poorly-functioning banking system starts to look a lot like Indian citizens could be in for a lot of strife in regards to using and managing their funds in the country.
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