Bank frauds up by 45% in 10 years, show data

October 09, 2019 02:48 pm | Updated 02:48 pm IST

Photo for representation

Photo for representation

A look at the data on banking frauds detected indicates that the number has exponentially risen in the past decade. Loan frauds constituted the highest percentage of frauds in FY 2019, according to RBI data.

More frauds under lens

While the number of bank frauds detected rose by 45% in FY '19 compared to FY '09, the amount of money involved spiked 35 times in the same period. The average quantum of a fraud has increased over the past decade, from ₹0.4 crore in FY ‘09 to ₹10 crore in FY '19.


Loan quandary

Loans (advances) constituted the highest number and quantum of frauds in FY '19 among all categories of fraud. While card/ Internet frauds constituted 27% of the total number of frauds, they accounted for just 0.3% of the total amount, indicating a lower amount involved per fraud in these cases.

image/svg+xmlCard/InternetDepositsCashOthers0200040006000No. of fraudsAdvancesOff-balance sheet*Others0200000400000600000Amount (₹ mn)Advances

*Off-balance sheet transactions are those which are not recorded on balance sheets.

PSBs in a pickle

Public Sector Banks accounted for the highest number of frauds and quantum (90.2%). In the chart on the right, each circle represents a type of banking institution, while the size indicates average amount per fraudulent transaction in FY '19.

image/svg+xmlNo. of fraudsAmount (cr)100002000050001000200501020.50.10.022105020010005000Public Sector BanksPrivate Sector BanksForeignBanksFinancial institutionsSmall Finance banksPaymentBanks

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