Value Of Bank Frauds Jumps Sharply Despite Fewer Cases: RBI Report

New Delhi, Dec 30 (KNN) Despite multiple safeguards and technology-led interventions, fraudsters exploit gaps in the banking system, leading to a sharp rise in the value of bank frauds even as the number of cases declined, according to the Reserve Bank of India’s (RBI) Report on Trend and Progress of Banking in India 2024-25 released on Monday.

Bank Fraud Cases Decline, Amount Surges

During 2024-25, based on the date of reporting by banks, the total number of fraud cases fell to 23,879 from 36,052 cases in the previous year. However, the amount involved in these frauds jumped sharply from Rs 11,261 crore to Rs 34,771 crore.

The RBI said the spike in the fraud amount was largely due to the re-examination and fresh reporting of 122 fraud cases amounting to Rs 18,336 crore, in compliance with the Supreme Court judgment dated March 27, 2023.

In the April–September period of 2025-26, the number of fraud cases declined further to 5,092 from 18,386 cases in the corresponding period of 2024-25.

However, the amount involved increased to Rs 21,515 crore from Rs 16,569 crore in the first half of the previous year.

Nature of Frauds

Card and internet frauds made up 66.8 percent of cases in 2024-25, while advances-related frauds accounted for 33.1 percent of the total amount involved, with their share rising across most bank groups.

Private sector banks accounted for 59.3 percent of the total number of fraud cases reported during 2024-25, while public sector banks accounted for 70.7 percent of the total fraud amount.

In private banks, card and internet frauds dominated by number, while advances-related frauds were highest by value. Public sector banks, recorded advances-related frauds as the largest category both in number and value.

Banking Sector Remains Resilient

Despite higher fraud values, Indian commercial banks remained resilient in 2024-25, supported by double-digit balance sheet growth. 

Profitability stayed strong with improved returns, though net profit growth slowed due to weaker net interest income, while asset quality improved to a multi-decade low gross non-performing assets of 2.1 percent by end-September 2025.

Outlook and Emerging Risks

The RBI said banks will face growing competition from non-bank lenders in financing the commercial sector, while rapid digitalisation, despite efficiency gains, is increasing exposure to cyber risks. 

It added that banks must strengthen risk assessment, responsibly adopt technology, uphold strong corporate governance, and continue prioritising financial inclusion, consumer education and protection.

(KNN Bureau)