Title: A Decade of Banking Frauds in India: ₹45,598 Crore and Counting
Concerns Raised by RBI Data
The latest Reserve Bank of India (RBI) report on trends and progress of banking in India reveals a tenfold increase in banking frauds, which amounted to a staggering ₹45,598 crore in 2021-22. This represents a huge leap from the ₹4,497 crore in fraud cases reported in 2011-12.
Fraud Cases by Category
The data, focusing on frauds worth ₹one lakh and above, displays that most of these banking frauds involved advances. In fact, frauds related to advances accounted for a whopping ₹43,512 crore of the total ₹45,598 crore in fraud cases in 2021-22.
- Deposit-related frauds amounted to ₹493 crore
- Cheque/demand draft-related frauds accounted for just ₹158 crore
Comparison with the Past
Interestingly, a similar trend was observed a decade ago. In 2011-12, advances-related frauds accounted for ₹3,552 crore out of the total ₹4,497 crore in fraud cases.
However, it’s worth noting that the total value of frauds has declined in the recent past. The value of frauds saw a significant decline from ₹1,66,576 crore in 2019-20 to ₹1,18,417 crore in 2020-21.
Reporting and Protecting Against Frauds
In cases of banking fraud, it is essential for the victim to report the fraud to the bank immediately. The RBI advises that “If you have suffered a loss due to unauthorized electronic transactions, your liability may be limited, but also zero, if you notify your bank immediately.” [!cta] Report Fraud to Your Bank Now [/]
Intermediaries and Transaction Security
During the online transactions process, intermediaries such as payee banks, payer banks, and payment gateways play a crucial role. It’s essential that the entire process is encrypted to ensure the security of customer data. If a fraud occurs during this process, it is the bank’s responsibility to refund the amount to the customer.
Staying Vigilant and Protecting Your Finances
As customers, it’s essential to remain vigilant and proactive in protecting your finances against banking frauds. Being updated on the latest trends and alerting the bank as soon as possible can significantly mitigate potential losses.
- Regularly monitor your account statements for any unauthorized transactions
- Set up alerts for large or unusual transactions
- Use strong, unique passwords and two-factor authentication for your banking and financial accounts
- Keep your personal information secure and avoid sharing it with others unless necessary
Conclusion
The RBI’s data on banking frauds highlights the growing concerns in the Indian banking sector, with a tenfold increase in fraud cases over the past decade, amounting to a staggering ₹45,598 crore in 2021-22. By remaining vigilant, proactive, and reporting frauds to your bank as soon as possible, you can minimize the potential impact of these frauds on your finances.