Bank frauds fall by 25% in a year: RBI annual report


Frauds reported by banks fell by 25 percent in value terms in just one year to Rs 1.38 lakh crore at the end of fiscal year ended March 2021, data released by the Reserve Bank of India as part of it annual report showed. During the same period last year total frauds reported by lenders was at Rs 1.85 lakh crore. In number terms fraud reporting was down by 15 percent on a year basis to 7363.

Public sector banks contributed to more than 59 percent of the total value of frauds at Rs 81,901 crore while private sector banks contributed 33 percent at Rs 46,335 crore.

“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.

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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.



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