Banking frauds: 4,071 cases involving ₹36,342 cr reported in H1 FY22, shows RBI report

The Reserve Bank of India, in its report on Trend and Progress of Banking in India 2020-21, has said that 4,071 banking frauds were reported from April-September against 3,499 during the same year-ago period. However, the amount involved in these banking frauds declined to Rs 36,342 crore during the first half of the fiscal year from Rs 64,261 crore in the corresponding period of the previous financial year.

"In terms of area of operations, an overwhelming majority of cases reported during 2020-21 in terms of number and amount involved related to advances, while frauds concerning card or internet transactions made up 34.6 per cent of the number of cases," the RBI said.

In 2020-21, there was a marked increase in frauds related to PVBs (private sector banks), both in terms of number as well as the amount involved. During H1:2021-22, private sector banks accounted for more than half of the number of reported fraud cases, the RBI said.

In value terms, the share of PSBs was higher, indicating predominance of high value frauds. "While the major share of loans related cases pertained to PSBs, PVBs accounted for a majority of card/ internet and cash-related cases," the RBI said.

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