Bank fraud cases rise in FY22, private banks report most incidents: RBI Data

The RBI Annual Report 2021-22 pointed out that the private sector banks in India recorded the highest number of frauds in the financial year 2021-22.

New Delhi: The Reserve Bank of India’s (RBI) Annual Report 2021-22, which was released on Friday (May 27), pointed out that the private sector banks in India recorded the highest number of frauds in the financial year 2021-22. According to the latest data released by the RBI, private sector banks reported the highest number of cases at 5,334, followed by public sector banks at 3,078. On the other hand, foreign banks and small finance banks reported 494 and 155 cases of bank fraud in the financial year 2021-22. 

The data showed that the number of bank fraud cases increased in FY21 than last year. However, the amount involved in the cases came down to half the amount involved a year ago. 

“While the number of frauds reported by private sector banks were mainly on account of small value card/internet frauds, the fraud amount reported by public sector banks was mainly in the loan portfolio," RBI said in its annual report.

The total number of fraud cases in FY22 stood at 9,103. In comparison, the count stood at 7,359 last year. The total fraud amount stood at Rs 60,414 crore in FY22 while the amount was Rs 1,38,211 crore a year ago. 

“An assessment of bank group-wise fraud cases over the last three years indicates that while private sector banks reported a maximum number of frauds, public sector banks contributed maximum to the fraud amount. Frauds have been occurring predominantly in the loan portfolio (advances category), both in terms of number and value," the report said. Also Read: iPhone 14 Pro renders reveal new colour options, ‘i-shaped’ notch: Deets here

Bank customers should note that 90% of the money lost in a bank fraud case can be retracted back in 10 days if they take the right steps at the right time. By sharing immediate information about any unauthorized transaction, bank customers can avoid losses in fraud cases. Also Read: Markets join global rally, Sensex zooms 632 points