RBI Annual Report: Bank Frauds Spike 74% In 2018-19, Loan-Related Incidents Top The Chart
The total amount involved in bank frauds rose to Rs 71,543 crore in the fiscal ended June 30, RBI annual report 2018-19 shows.
Bank frauds in India have jumped 74 percent by value, driven by loan-related incidents.
The total amount involved in fraudulent transactions rose to Rs 71,543 crore in the financial year ended June 30, the Reserve Bank of India said in its annual report for 2018-19. Public sector banks accounted for 90 percent of these worth Rs 64,509 crore. Private and foreign banks reported Rs 5,515 crore and Rs 955 crore worth of frauds, respectively.
The total number of bank frauds also rose to 6,801 incidents in 2018-19 from 5,916 a year ago, the RBI annual report shows. The data included transactions worth Rs 1 lakh and above.
The advances-related frauds contributed the most at Rs 64,548 crore, followed by off-balance sheet frauds worth Rs 5,537 crore, according to the RBI annual report.
In terms of the number of frauds too, those related to advances were predominant. Card, internet and deposit-related transactions followed—these contributed only 0.3 percent of the total amount in 2018-19.
The average lag between the occurrence and the detection of frauds by banks was 22 months, the regulator said. Large-value frauds involving Rs 100 crore and more took 55 months to detect. Such frauds contributed Rs 52,200 crore to the total amount.