According to a report released by the Reserve Bank of India (RBI), total bank frauds during 2018-19 FY increased to Rs 71, 543 crores from Rs 41, 167 crores in the previous FY – a whopping 74% increase. Number of fraud cases reported by lenders also went up to 6801 from 5916 in 17-18 FY.
Share of fraud cases by bank type:
- PSBs – 55.4%
- Private banks – 30.7%
- Foreign banks – 11.2%
- Others – 2.7%
Share of fraud loss amount by bank type :
- PSBs – 90.2%
- Private banks – 7.7%
- Foreign banks – 1.3%
- Others – 0.8%
One possible explanation for the sharp jump in reported frauds is implementation of a GoI framework for timely detection, reporting and investigation of frauds in public sector banks (PSBs) issued in Feb’18. RBI in the report has stated that the PSBs are still lacking adequate internal processes, people and systems to effectively tackle bank fraud.