Shocking Tenfold Increase in Banking Frauds Over the Past Decade: RBI Data
According to a recent analysis of Reserve Bank of India (RBI) data on banking frauds, the total value of fraud cases in India’s banking sector has seen a astonishing increase of tenfold within a decade (Source: RBI).
Key Findings
- Total fraud cases amounted to ₹45,598 crore in 2021-22
- 9,000 cases of fraud were reported last fiscal year
- Advances-related frauds were the largest chunk, valued at ₹43,512 crore
- Deposit-related frauds had a value of ₹493 crore
- Cheque/demand drafts related frauds added up to ₹158 crore
- Value of fraud cases declined in the past two years
A Decade of Banking Frauds: A Comparative Analysis
According to the RBI data, the total fraud amounted to ₹4,497 crore in 2011-12. A break-down of fraud cases from that year reveals:
- Advances-related frauds: ₹3,552 crore
- Deposit-related frauds: ₹219 crore
- Cheque/demand drafts related frauds: ₹40 crore
Trends and Analysis
The significant decline in the value of fraud cases from ₹1,66,576 crore in 2019-2020 to ₹45,598 crore in 2022-23 can be attributed to various factors, including increased awareness, stringent measures taken by RBI and banks, and changes in customer behavior.
Implications for Banking Customers
For any victims of banking frauds, it is essential to:
- Report the case to the bank immediately
- Consult RBI guidelines for liability rules
According to the RBI guidelines, 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.” By reporting the case within a reasonable time frame, the bank can prove that you were not involved in the fraudulent activity.
MintGenie’s Stance on Online Transactions
MintGenie encourages safe and secure online transactions, as all processes should be fully encrypted with no customer data stored during the process. In the rare case of a fraud, the bank is responsible for refunding the entire amount to the customer.