Banking scam in China: Financial scam in four rural banks of China, police arrested 234 people
The investigation revealed that the rural banks are being dominated by criminal gangs, due to which the gangs bring the money deposited in the bank to their personal use to indulge in their criminal activities.
Abhilasha 
Zhengzhou Agency: China is currently whipping up financial scammers in the country. On Monday, Chinese media reports that Chinese authorities have announced that 234 people involved in financial scams at several rural banks in Henan province have been arrested. China Daily reported that Shu chang City Police claimed to have achieved great success in recovering damages and capital in the scam.
According to news agency ANI, before July 10, thousands of depositors had gathered outside the branch of the Chinese Central Bank and People's Bank of China in Zhengzhou for the biggest protest ever. After this it came to light that the Bank of China's Henan branch has declared that the depositors' savings deposited in the bank are 'investment products', they cannot be withdrawn.
Banks being controlled by criminal gangs
An investigation by Shuchang's Public Security Bureau found that four rural banks, including Yuzhou Jinminsheng Rural Bank, were suspected to have been controlled by Liu's criminal gang, and the gang is suspected to have committed a serious crime.
According to the report of China Daily, the police said that this gang had illegally siphoned off their capital by luring depositors to get 13 to 18 percent annual profit in excess of the interest received from the bank. Layer by layer brokers were involved in getting the capital. Police said that the investigation of the case is going on as per the law.
Banks had stopped services for closed customers
Significantly, after April 18, four of Henan's rural banks had suspended their online services for customers and access to their capital. Since then the outrage has grown. Public outcry over the past few months due to this financial scandal has escalated, when customers complained that the rules had changed for them at the bank. At the end of June, five people, including four officers, were punished for changing rules by abusing power in Henan.
Also police in Shuchang have revealed that the group led by Liu was allegedly using several rural banks to engage in illegal activities and various crimes since 2011.
