Bank fraud cases fell in FY25, amount rose threefold to ₹36,014 cr: RBI

Most cases in digital payments involved ₹520 crore, says regulator in annual report

Bank frauds reduced in FY25 but the amount involved went up almost three-fold and most cases occurred in digital payments, said the Reserve Bank of India (RBI) on Thursday. Private-sector banks reported more cases but state-owned lenders “contributed maximum” to the fraud amount.

 

As many as 23,953 incidences of fraud involving banks took place, down 34 per cent from FY24, said the regulator’s annual report for FY25. The amount involved in frauds in FY25 was ₹36,014 crore, up almost three times.

 

 

“The increase in the amount involved in the total frauds reported during 2024-25 over 2023-24 was mainly due to removal of fraud classification in 122 cases amounting to ₹18,674 crore reported during previous financial years and reporting afresh during the current financial year after re-examination and ensuring compliance with the judgement of the Supreme Court dated March 27, 2023,” said the report.

 

 

Data reported by the RBI are for frauds of ₹1 lakh and above. Additionally, frauds reported in a year could have occurred several years prior to year of reporting.

 

Private-sector lenders reported the highest number of fraud cases (14,233) in FY25, accounting for 59.4 per cent of all cases in the banking sector. State-owned banks reported 6,935 cases (29 per cent) but the amount involved was higher at ₹25,667 crore (71.3 per cent of the total), compared to ₹10,088 crore reported by private sector lenders.

 

 

 

“An assessment of bank group-wise fraud cases over the last three years indicates that while private-sector banks reported maximum number of frauds, public sector banks continued to contribute maximum to the fraud amount,” said the report.

 

Data shows that there were 13,516 frauds in the digital payments category in FY25, the most in banking. Such frauds comprised 56.5 per cent of total cases and involved ₹520 crore. There were fewer frauds in the advances segment (7,950 cases) but accounted for over 92 per cent of the total amount involved (₹33,148 crore). 

 

According to RBI, frauds mostly occurred in digital payments (card/internet) in terms of number and primarily in the loan portfolio (advances) in terms of value. Card/internet fraud comprised the largest number of cases reported by private-sector banks. Frauds in public sector banks were mainly in loan portfolios.