Value of bank fraud cases rises 74% to 71,543 cr in FY19: RBI Annual Report

  • The average lag between the date of occurrence and its detection for large frauds, i.e. 100 crore and above, was 55 months
  • Among bank groups, PSU banks have accounted for the bulk of frauds reported in 2018-19

New Delhi: Value of bank fraud cases increased 74%, from 41,167 cr in FY18 to 71,543 cr in FY19, said the RBI annual report 2019.

Number of bank fraud cases rise from 5,900 in FY18 to 6,800 in FY19.

The number of cases of frauds reported by banks increased by 15% in 2018-19 on a year-on-year basis, with the amount involved rising by 73.8%, though mostly related to occurrences in earlier years.

The average lag between the date of occurrence and its detection by banks was 22 months. The average lag for large frauds, i.e. 100 crore and above, amounting to 52,200 crore reported during 2018-19, was 55 months.

Among bank groups, public sector banks, which constitute largest market share in bank lending, have accounted for the bulk of frauds reported in 2018-19. Value of frauds at PSU banks rose from 38,260 crore in FY18 to 64,509 crore in FY19.

It was followed by private sector banks and foreign banks. Value of frauds at private banks rose from 2,478 crore in FY18 to 5,515 crore in FY19.

In terms of area of operations, frauds related to advances constituted the preponderant share of the total amount involved in frauds in 2018-19, while the share of frauds in off-balance sheet items declined from a year ago.

In terms of the number of frauds too, those related to advances were predominant followed by card/internet related frauds and deposits related frauds. Frauds relating to card/internet and deposits constituted only 0.3% of the total value of frauds in 2018-19.

Cheating and forgery was the major component, followed by misappropriation and criminal breach of trust. Fraud cases involving an amount of less than 1 lakh (i.e., small value frauds) were only 0.1% of the total amount involved in 2018-19.

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