NEW DELHI: Banking sector witnessed a rise in cases of fraud in the first six months of current financial year. The number of cases during April- September period of this year have gone up to 5,406 from 4,069 in the same period in financial year 2021-22, according to a report released by the Reserve Bank of India (RBI).
However, the amount involved in banking frauds has fallen. The total value of frauds stood at Rs 19,485 crore during April- September this year, which was significantly less than Rs 36,316 crore reported by banks in the same period in 2021-22, as per the ‘Report on Trend and Progress of Banking in India 2021-22’.
“The number of fraud cases reported by private sector banks outnumbered those by public sector banks for the second consecutive year in 2021-22. In terms of the amount involved, however, the share of PSBs was 66.7% in 2021-22, compared with 59.4% in the previous year,” noted the report. The maximum number of frauds were witnessed in online banking.
Banks reported 2,321 cases of frauds in the cards or internet-based transactions involving nearly Rs 87 crore during the first six months of the current financial year, which was much higher than last year. Banks had reported 1,532 cases of frauds in cards/internet category involving Rs 60 crore in the first six month of FY 2021-22. While cards or internet-based transactions were in top in terms of number of transactions, ‘advances-related frauds’ topped in terms of money involved.
Banks reported 2,006 cases of frauds involving Rs 18,746 crore in first six month of current financial year, while in the same period in 2021-22 the banks had reported 1,800 cases of frauds, which involved Rs 35,034 crore. “Based on the date of occurrence of frauds, advances-related frauds formed the biggest category prior to 2019-20. Subsequently, however, in terms of number of frauds, the modus operandi shifted to card or internet-based transactions.
Additionally, cash frauds are also on the rise,” noted the report. As per RBI’s Annual Report released earlier this year, the banking sector saw 9,103 cases of frauds involving Rs 60,414 crore. In the total cases, private bans had a share of 58.6 percent while public lenders accounted for 33.8 percent share.
Frauds in banking sector
5,406: Number of fraud cases in April-Sept 2022
4,069: Number of fraud cases in April-Sept 2021
L19,485 crore: Value of frauds in April-Sept- 2022
L36,316 crore: Value of frauds in April-Sept- 2021
2,321: Number of fraud cases in ‘cards/ internet’ category in April- Sept 2022
1,532: Number of fraud cases in ‘cards/ internet’ in April- Sept 2021