The Reserve Bank of India said on Thursday that the total amount involved in bank frauds rose nearly threefold in the fiscal 2024-25 even as the number of fraud cases fell sharply, as the increase was largely driven by a reclassification of several fraud cases following a 2023 Supreme Court judgement, alongside a rise in loan-related frauds.
The overall value of bank frauds jumped 194.4% to Rs 36,014 crore in the previous fiscal even as the bank fraud cases declined by 33.5% to 23,953 during the period, according to the annual report published by the country's central bank.
The surge in the fraud amount was mainly due to the removal of fraud classification in 122 cases amounting to Rs 18,674 crore, RBI said, adding that these cases—which were reported in previous financial years—were re-examined and reported afresh after complying with the Supreme Court's judgement dated March 27, 2023.
Bank-Wise Fraud Pattern
While private sector banks reported the highest number of fraud cases, public sector banks continued to account for the largest share of fraud value, with PSU banks accounting for nearly 71% of the total amount.
Surge In Loan Frauds
Loan frauds increased by 230% to Rs 33,148 crore, with the number of such cases nearly doubling to 7,950. In contrast, card and internet frauds fell 63% in value to Rs 520 crore, while their reported cases also dropped by more than half to 13,516.
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