While the number of bank fraud cases decreased in the fiscal year 2024-25, the amount of money defrauded saw a significant increase. According to the RBI's annual report, the total fraud amount reached ₹36,014 crore, almost three times higher than the previous year. Most of these fraudulent activities occurred through digital channels. Public sector banks accounted for a larger share of the defrauded amount, while private sector banks reported a higher number of cases.
Bank Fraud Cases Decline, but Amount Increases
The RBI's annual report states that a total of 23,953 bank fraud cases were registered in fiscal year 2024-25, a 34% decrease compared to the previous fiscal year. This reduction is positive news, as a decrease in fraud-related incidents is considered a positive sign for the economy.
However, the amount involved is a cause for concern. The total fraud amount reached ₹36,014 crore, almost three times higher than the previous year.
Reasons for the Increased Fraud Amount
The report clarifies that this increase is primarily due to the reclassification of some older cases as fraud. Following a Supreme Court ruling, 122 cases involving ₹18,674 crore were re-examined and reported afresh in the current fiscal year, significantly increasing the total fraud amount.
This figure is based only on fraud cases involving ₹1 lakh or more. Some fraud reports might also reflect the year of reporting rather than the year the fraud occurred.
Difference between Private and Public Sector Banks
In fiscal year 2025, private sector banks registered the highest number of fraud cases at 14,233, representing approximately 59.4% of the total cases. These banks reported fraud amounting to ₹10,088 crore.
Public sector banks, on the other hand, reported fewer cases—only 6,935 (approximately 29%). However, the amount of fraud in public sector banks reached ₹25,667 crore, accounting for 71.3% of the total fraud amount.
This indicates that despite fewer cases, the amount of money lost to fraud in public sector banks is considerably higher.
Digital Payments and Fraud
The report also notes that most fraud cases occurred through digital channels. The rise in digital transactions has led to a rapid increase in cyber fraud and online scams. This poses a significant challenge to the banking sector, necessitating a strengthening of security mechanisms.
