According to the Reserve Bank of India’s (RBI) latest report, the number of bank frauds during the first half of the current fiscal year saw a significant increase. From April to September 2023, there were 18,461 fraud cases involving a total of Rs 21,367 crore, compared to 14,480 cases and Rs 2,623 crore during the same period in the previous fiscal year.
The RBI’s “Report on Trend and Progress of Banking in India 2023-24” highlights the performance of various financial institutions, including commercial and co-operative banks, as well as non-banking financial companies, for the 2023-24 and 2024-25 periods.
The report notes that frauds pose several challenges to the financial system, including reputational risk, operational risk, business risk, and a decline in customer confidence, all of which have implications for financial stability.
However, for the entire 2023-24 fiscal year, the RBI reported that the total amount involved in frauds was the lowest in a decade, with the average value being the lowest in 16 years.
