The Reserve Bank of India (RBI) has unveiled a concerning trend in its latest annual report: while the number of reported banking frauds has seen a dramatic decline, the total monetary value involved has surged significantly. The data paints a picture of fewer but far more costly incidents plaguing the financial system.
A Surge in Value Amid Falling Numbers
According to the RBI's 'Trend and Progress of Banking in India 2024-25' report, the total amount of money involved in banking frauds jumped by 30 per cent to Rs 21,515 crore in the first half of the current fiscal year (April-September 2025). This is a sharp increase from the Rs 16,569 crore reported in the same period last year.
However, in a contrasting trend, the total number of fraud cases reported by banks based on the date of reporting plummeted to 5,092 in H1 FY26. This figure is drastically lower than the 18,386 cases recorded in the corresponding six months of the previous financial year.
Annual Picture and the Supreme Court Impact
The full financial year 2024-25 (FY25) reveals an even starker escalation in value. The RBI stated that the amount involved in frauds based on reporting date tripled to Rs 34,771 crore in FY25, up from Rs 11,261 crore in FY24. The number of frauds annually did decline from 36,052 to 23,879.
A significant driver behind this massive yearly jump was identified by the central bank. The report attributed it to the "re-examination and reporting afresh of 122 fraud cases amounting to Rs 18,336 crore." This reassessment was undertaken by banks to ensure compliance with a Supreme Court judgement dated March 27, 2023.
Where and How Frauds Are Occurring
Breaking down the frauds by their nature and the banks involved provides crucial insights:
By Type of Fraud:
- Based on the date of occurrence in FY25, card and internet frauds dominated in volume, accounting for 66.8% of all cases by number.
- However, in terms of monetary impact, advances-related frauds (like loan scams) were the most significant, constituting 33.1% of the total amount involved.
By Bank Group:
- Private sector banks reported 59.3% of the total number of fraud cases in FY25.
- Conversely, public sector banks (PSBs) shouldered 70.7% of the total amount involved, indicating they were hit by far larger individual frauds.
- For private banks, card/internet frauds were most common by count, while advances-related frauds had the highest value.
- For PSBs, advances-related frauds led both in number and value.
A Silver Lining in Digital Fraud
The report did highlight one positive trend. During 2024-25, the share of card and internet frauds declined across all bank groups, both in the number of cases (falling to 7,756 from 27,663) and the amount involved (dropping to Rs 252 crore from Rs 1,192 crore). This suggests improved security measures and customer awareness in digital transactions.
The overall increase in advances-related frauds across most bank groups was partly due to the reclassification of the large, legacy fraud cases following the Supreme Court order. The RBI's detailed report underscores the evolving nature of financial fraud, where vigilance must now focus on high-value institutional scams even as smaller digital frauds see containment.
