New Delhi, May 27: Frauds reported by banks and other financial institutions in value terms more than halved in 2021-22, despite the number of instances of fraud increasing, the Reserve Bank of India’s (RBI) annual report released on Friday showed.
In 2021-22, frauds to the tune of Rs 60,414 crore were reported, down 56.28 per cent from Rs 1.38 trillion in 2020-21. In terms of number of frauds, these entities reported 23.69 per cent higher frauds at 9,103 in 2021-22 as against 7,359 frauds in 2020-21. The RBI data considers frauds of Rs 1 lakh and above only.
“An assessment of bank group-wise fraud cases over the last three years indicates that while private sector banks reported maximum number of frauds, public sector banks contributed maximum to the fraud amount”, the RBI annual report showed.
“While the number of frauds reported by private sector banks were mainly on account of small value card/internet frauds, the fraud amount reported by public sector banks was mainly in loan portfolio”, the report added.
Also, frauds have occurred in the loan portfolio, both in terms of number and value. In the number of frauds, advances constituted 42.2 per cent and in value terms it was almost 97 per cent at Rs 58,328 crore. Cards/internet constituted 39.5 per cent of the number of frauds but in value terms it was just 0.2 per cent.
An analysis of the vintage of frauds reported during 2020-21 and 2021-22 shows a significant time-lag between the date of occurrence of a fraud and its detection. Around 93.73 per cent of the frauds in 2021-22 by value occurred in previous fiscal years as against 91.71 per cent recorded in 2020-21, the RBI said.
