top of page

Bank Fraud regulation?


RBI Annual Report:

  • It revealed that the total number of cases of fraud with a minimum size of ₹1 lakh at banks and other financial institutions increased by 28% by volume. 

  • It surged 159%, or more than 2.5 times, by value to ₹1.85-lakh crore in the financial year 2019-2020. They declined during the COVID-19 Pandemic.

  • Worrying factor of the Frauds:

    • Concentration of frauds: In the report, RBI found a concentration of large value frauds with the top 50 credit-related frauds constituting 76% of the total amount. 

    • Delayed reporting of the frauds: 

      • RBI has already created a framework to facilitate the prevention, early detection and prompt reporting of such frauds. 

      • Despite these frameworks, the average lag in detecting these transactions was 24 months during 2019-20. 

      • In the frauds with sum involved is more than ₹100 crore, the average lag was more than five years.

    • More concentration of frauds in the Public sector Banks as they accounted for around 80% share in 2019-20. However the speed of increasing fraud in the private sector is more than in the public sector banks with an increase of 34% as compared to 24% in public sector banks.

Bank Fraud regulation?: News
bottom of page