Kolkata: Bank frauds have significantly gone down in FY25 but have risen dramatically in value, the Reserve Bank has stated. While the value jumped by about 300% — from Rs 12,230 in FY24 to Rs 36,014, the number of fraud cases dropped from 36,060 in FY25 to 23,953 last year. Loan-related frauds accounted for as much as Rs 33,148 crore, or more than 92% of the total value.
What’s more, its is the public sector banks that suffered more at the hands of fraudsters — the PSU banks accounted for 71.3% of the total hit in value amounting to Rs 25,667 crore. However, they suffered far fewer fraud cases compared to the private sector banks. PSU banks recorded 6,935 frauds contrasted to 14,233 in private sector banks. Private sector banks suffered a total of Rs 10,088 crore fraud.
It was pointed out that the rise in value of fraud cases could be substantially due to reclassification of 122 fraud cases which were cumulatively worth Rs 18,674 crore which happened in earlier years. This development followed a verdict by the Supreme Court in March 2023.
“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 Hon’ble Supreme Court dated March 27, 2023,” SBI Research wrote in a note.
Digital frauds most frequent
In terms of numbers, digital frauds was the most frequent. These were mostly related to card and internet-based payments. These were numbered at 13,516 cases. However, in terms of the cumulative damage they were relatively small — only Rs 520 crore. In a category mentioned as “Others”, the amount stood at Rs 1,392 crore. Instances that were linked to forex transactions, cash, cheques, clearing accounts etc were relatively fewer.
RBI said in the report its Department of Supervision is adopting a stricter stance and is in the process of strengthening both on-site and off-site oversight mechanisms. RBI is also in the final stages of launching a a controlled environment for simulating and responding to cyber threats in conjunction with Institute for Development and Research in Banking Technology. The Department of Supervision is also setting up an Advanced Supervisory Analytics Group to employ artificial intelligence and machine learning into the oversight mechanism.
While they registered fewer cases of frauds, public sector banks suffered far more at the hands of fraudsters in terms of value, accouting for as much as 71.3% of the total hit in value amounting to Rs 25,667 crore. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
