PSU banks more prone to frauds, says RBI's financial stability report

Frauds in the Indian banking system are on the rise, with public sector banks (PSBs) being the favourite hunting ground for scamsters, observed the Reserve Bank of India’s (RBI’s) financial stability report (FSR).

“In recent years, frauds reported (for amount = Rs 100,000) in the banking sector show an increasing trend both in terms of number and quantum,” the FSR said.

More than 85 per cent of the frauds happened with public sector banks, which significantly exceeded their relative business share in credit of around 65 per cent. The FSB observation on frauds holds significance after it was found that celebrated jeweller