Number of frauds in banking sector on the rise, but amount declines

The number of frauds in the banking sector increased over four times in the past 5 years to 36,075, but the amount involved came down significantly to about Rs 14,000 crore in FY24 from over Rs 1.85 trillion in FY20.

RBI in its annual report said over the last three years private sector banks reported maximum number of frauds, public sector banks continued to contribute maximum to the fraud amount.

In terms of the number of frauds, those have predominantly been witnessed through digital payments (card or internet). The number rose to 29,082 in FY24 as compared to 2,677 in FY20.

In terms of value, frauds have been reported primarily in the loan portfolio, which has witnessed a gradual decline to Rs 11,772 crore in FY24 from Rs 1.81 trillion in FY20.

89.2 per cent of the frauds reported in 2023-24 by value occurred in previous financial years.