Bank frauds up almost 300% in last two years, digital frauds up 708%: RBI - Hindustan Times
close_game
close_game

Bank frauds up almost 300% in last two years, digital frauds up 708%: RBI

PTI |
May 30, 2024 03:01 PM IST

During 2023-24, the amount involved in frauds was ₹13,930 crore, down from ₹26,127 crore a year ago.

The number of frauds in the banking sector went up to 36,075 in 2023-24 year-on-year, but the amount involved reduced by 46.7 per cent to 13,930 crore, according to the Reserve Bank's annual report released on Thursday.

A police officer walks past the Reserve Bank of India (RBI) logo inside its headquarters in Mumbai, India.(Reuters)
A police officer walks past the Reserve Bank of India (RBI) logo inside its headquarters in Mumbai, India.(Reuters)

The RBI report also said that with an aim to curb frauds and enhance the payment experience further, the introduction of real-time payee name validation before the actual fund transfer will be explored in compliance with newly enacted ‘The Digital Personal Data Protection Act, 2023’.

Now catch your favourite game on Crickit. Anytime Anywhere. Find out how

During 2023-24, the amount involved in frauds was 13,930 crore, down from 26,127 crore a year ago. The number of frauds increased to 36,075 during 2023-24 from 13,564 in the preceding financial year.

An assessment of bank group-wise fraud cases over the last three years indicates that while private sector banks reported maximum number of frauds, public sector banks continued to contribute maximum to the fraud amount, said the Annual Report for 2023-24.

Read more: How Open-sourcing AI made Mark Zuckerberg a Silicon Valley darling, again

"Frauds have occurred predominantly in the category of digital payments (card/internet), in terms of number. In terms of value, frauds have been reported primarily in the loan portfolio (advances category)," the report said.

While small value card/internet frauds contributed maximum to the number of frauds reported by the private sector banks, the frauds in public sector banks were mainly in loan portfolio.

Further, an analysis of the vintage of frauds reported during 2022-23 and 2023-24 shows a significant time-lag between the date of occurrence of a fraud and its detection.

"The amount involved in frauds that occurred in previous financial years formed 94 per cent of the frauds reported in 2022-23 in terms of value," the report said.

Similarly, 89.2 per cent of the frauds reported in 2023-24 by value occurred in previous financial years.

Elevate your career with VIT’s MBA programme that has been designed by its acclaimed faculty & stands out as a beacon for working professionals. Explore now!

See more

Get latest updates on Petrol Price along with Gold Rate , Today Weather and Budget 2024 at Hindustan Times.

SHARE THIS ARTICLE ON
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Monday, June 24, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On