“Frauds have been occurring predominantly in the loan portfolio, both in terms of number and value,” the RBI said in its annual report. “Though the value of frauds reported in advances category for 2020- 21, in percentage terms, remained almost same as compared to the last year, the incidence of frauds in advances category, in terms of number, has come down over the previous year.“
99 percent of the total frauds reported in the fiscal year gone by were from the advances category in value terms. The number of frauds in the online space shot up 34.6 percent at the end of March 2021.
Despite fraud reporting seeing a decline, the average time lag between the date of occurrence of frauds and the date of detection was 23 months for the period ended March. However, for large value frauds of more than Rs 100 crore, the lag period in reporting was 57 months.
The banking regulator in its annual report also said that it would streamline the process of data collection from all the banks and their off-site assessment.