Rs.82000 crore bank frauds reported last year, maximum in SBI & PNB: says RBI

Rs.82000 crore bank frauds reported: As per RBI data, 12 PSBs (Public Sector Banks) had reported frauds worth Rs 81,921.54 crore (approximately Rs.82,000 crore) in preceding fiscal 2020-21. This data was revealed on the basis of the Right to Information (RTI) Act.

However, the number of fraud cases didn’t fall at the same pace as a total of 7,940 frauds reported by the PSBs in 2021-22, against 9,933 incidents reported in FY21.

Highest amount of frauds in PNB

According to the RBI data on frauds reported by PSBs in all categories during FY22, the highest amount of Rs 9,528.95 crore was reported by the city based Punjab National Bank (PNB), involving 431 such incidents.

Maximum frauds in SBI

The country’s largest lender State Bank of India reported frauds worth Rs 6,932.37 crore in as many as 4,192 cases.

Frauds in other Banks

Bank of India reported frauds worth Rs 5,923.99 crore (209 incidents), followed by Bank of Baroda at Rs 3,989.36 crore (280). Union Bank of India reported frauds of Rs 3,939 crore (627), while Canara Bank reported frauds worth Rs 3,230.18 crore in 90 cases.

Indian Bank customers faced frauds amounting to Rs 2,038.28 crore in 211 cases; Indian Overseas Bank relorted frauds worth Rs 1,733.80 crore (312). Bank of Maharashtra report3d frauds worth Rs 1,139.36 crore (72 cases); Central Bank of India reported fraud of Rs 773.37 crore; UCO Bank reporter fraud of Rs 611.54 crore (114 crore) and Punjab & Sind Bank reported frauds of Rs 455.04 crore in 159 incidents.

RBI said that the data may change subject to rectification/update made subsequent to first reporting of banks (in respect of individual frauds). As per the RBI reply, the amount of frauds worth less than Rs 1 lakh has been recorded from April 1, 2017.

India loses Rs 100 crore to banking fraud every day

India lost at least Rs 100 crore every day to bank fraud or scams over the past seven years, although there was a year-on-year reduction in the total amount involved, according to RBI data.

Maharashtra was ranked first in terms of fraud. It accounted for 50% of the money involved, followed by Delhi, Telangana, Gujarat and Tamil Nadu. These five states together accounted for more than Rs 2 lakh crore, or 83%, of the quantum of money lost to financial fraud.

Between April 1, 2015 and December 31 last year, banking fraud worth Rs 2. 5 lakh crore was detected across states.

Type of Bank Frauds

RBI classifies frauds under following categories:

  1. misappropriation and criminal breach of trust
  2. fraudulent encashment through forged instruments
  3. manipulation of books of account or through fictitious accounts and conversion of property
  4. unauthorised credit facilities extended for reward or for illegal gratification
  5. negligence and cash shortages
  6. cheating and forgery
  7. irregularities in foreign exchange transactions
  8. any other type of fraud not coming under the specific heads as above.

From Rs 67,760 crore in 2015-16, the quantum of money lost to fraud dipped to Rs 59,966.4 crore in 2016-17. The two years that followed reported under Rs 45,000 crore. In 2019-20, the number further dropped to Rs 27,698.4 crore and then to Rs 10,699.9 crore in 2020-21. The amount in the first nine months of this fiscal stands at Rs 647.9 crore.