Banks reported frauds involving Rs 48,021 crore in FY26, more than four times the Rs 11,013 crore reported in FY24, even as the number of fraud cases fell 72% over the same period.
The number of fraud cases declined to 10,114 in FY26 from 35,800 in FY24. The amount involved, however, rose from Rs 11,013 crore to Rs 48,021 crore, according to data in the Reserve Bank of India's Annual Report 2025-26.
The divergence reflects a shift in the composition of frauds reported by banks. While card, internet and digital payment frauds accounted for the largest share of cases in FY24 and FY25, frauds linked to advances emerged as the dominant category in FY26.
The RBI said loans accounted for the largest share of frauds in FY26, while frauds by value remained concentrated in the advances category across all three years.
Loan Fraud Concentration
Frauds related to advances stood at 8,640 cases involving Rs 40,774 crore in FY26. They accounted for 85.5% of all fraud cases reported during the year and 84.9% of the total amount involved.
By contrast, card, internet and digital payment frauds fell to 293 cases involving Rs 29 crore in FY26, down from 28,836 cases involving Rs 1,452 crore in FY24.
ALSO READ: UPI Crossed 200 Billion Transactions. So Why Are Indians Using More Cash?
Deposit-related frauds totalled 407 cases involving Rs 377 crore in FY26, while frauds classified under "others" amounted to Rs 6,063 crore across 418 cases.
Public Sector Banks
Public sector banks accounted for the largest share of the fraud amount reported in FY26.
State-owned lenders reported 5,418 fraud cases involving Rs 35,709 crore during the year, compared with 3,956 cases involving Rs 11,399 crore reported by private sector banks.
ALSO READ: 97% Of Transactions Are Digital. So Why Does HDFC Bank Have 9,700 Branches?
Across all bank groups, the total number of fraud cases declined from 35,800 in FY24 to 23,722 in FY25 and further to 10,114 in FY26. Over the same period, the amount involved rose from Rs 11,013 crore to Rs 32,803 crore and then to Rs 48,021 crore.
The RBI's annual report noted that while the number of frauds in public and private sector banks has fallen over the past three years, the amount involved has increased.
ALSO READ: Banks Rake In Rs 19,083 Crore In Minimum Balance Penalties Over 3 Years; HDFC Bank Tops Chart
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
