The Reserve Bank of India (RBI) has revealed a significant rise in bank fraud cases, with an almost 300% increase over the past two years. According to RBI's annual report for FY24, the number of reported fraud cases soared from 9,046 in FY22 to 36,075 in FY24. Despite this surge in cases, the total amount involved in these frauds has decreased from Rs 45,358 crore to Rs 13,930 crore.
The report noted a 46.7% drop in the total value of frauds in FY24 compared to the previous year. Private sector banks reported the highest number of frauds, while public sector banks accounted for the largest portion of the fraud amounts.
Digital payments, including card and internet transactions, were the most common types of fraud in terms of numbers. However, loan portfolio frauds accounted for the highest value. Small value card and internet frauds were prevalent among private sector banks, whereas public sector banks mainly faced frauds in their loan portfolios.
The number of frauds related to card and internet payments increased dramatically from 3,596 in FY22 to 29,082 in FY24. In terms of value, these frauds rose from Rs 155 crore in FY22 to Rs 1,457 crore in FY24.
A study conducted by the RBI on fraud cases reported in FY23 and FY24 highlighted a significant delay between the occurrence and detection of frauds. The report indicated that 94% of the frauds reported in FY23 and 89% in FY24 by value actually occurred in previous financial years.
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