Banks Report Fewer Frauds So Far This Fiscal, Says RBI Report
After rising twofold last year, fewer bank frauds were reported in the first half of the ongoing financial year.
Fewer bank frauds were reported in the first half of the ongoing fiscal than a year earlier.
Bank frauds worth more than Rs 64,681 crore were reported during April-September 2020 compared with Rs 1.13 lakh crore during the same period a year ago, according to the Reserve Bank of India’s report on Trend and Progress of Banking in India for 2019-20. Bank frauds had jumped more than two-fold on delayed detection in the previous financial year.
While 98% of frauds in terms of value were related to loans, their occurrence was spread over several previous years, according to the report. For instance, the majority of frauds reported till September 2020—both in terms of number and amount—had occurred in years prior to 2017-18, the report said.
Based on the date of occurrence, 1,182 frauds were reported between April- September 2020 compared to 21,990 in 2019-20.
Private Bank Frauds On The Rise
Although 73.93% of all banking frauds were reported in state-run banks, their share declined during April-September 2020 compared to the same duration last year. Private lenders, on the other hand, saw a rise in their share to account for 24.05% of all banking frauds from 18.4% in the same duration a year ago.