Mumbai21 minutes ago
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The cases of fraud in the country’s banking system have decreased between April-September, but the amount has increased by ₹16,569 crore by 30% to ₹21,515 crore.
Last year, 18,386 cases were registered. This time it has come down to only 5,092. Loan related frauds have been reported the most in government banks.
The Reserve Bank of India (RBI) released its annual report ‘Trend and Progress of Banking in India 2024-25’ on 29 December 2025. This report gives information about the performance of the banking sector during the first half of 2024-25 and 2025-26.
Fraud amount increased after Supreme Court order
The main reason for this increase in the amount of fraud is a decision of the Supreme Court dated 27 March 2023. According to the report, following the directions of the court, 122 old fraud cases were re-examined and reported fresh. A huge amount of Rs 18,336 crore is involved in these 122 cases alone. This is a major part of the total fraud amount.
Number of digital frauds is high, but more money is lost in loan fraud.
In terms of numbers, 66.8% of the total cases are related to digital fraud. However, when it comes to lost money, loan frauds are at the forefront.
The share of loan related fraud in the total fraud amount was 33.1%. This data is based on fraud cases of Rs 1 lakh and above.
The pattern of fraud was also different in different bank groups:
- Private Bank: The share of private sector banks in the total number of registered cases was 59.3%. Most of the cases here were related to cards and internet banking.
- Public Sector Banks (PSBs): Government banks remained at the forefront in terms of bad money. 70.7% of the total fraud amount was related to these banks. The cases of fraud related to loans (advances) in government banks were the highest both in number and amount.
When a person or company takes a huge loan from the bank by showing false documents and does not repay it, it is called advance fraud. There are often large sums of money involved.
Fraud cases worth about ₹1.28 lakh crore withdrawn
The data also shows that a total of 942 fraud cases have been withdrawn by banks and financial institutions till September 30, 2025. An amount of about Rs 1.28 lakh crore was involved in these cases. After the decision of the Supreme Court, these cases have been withdrawn due to not following the principles of ‘Natural Justice’.
Increased strictness on loan related fraud
Banking experts believe that the increasing graph of loan related fraud is a matter of concern. This is the reason why banks have now increased re-classification and strictness in the category of ‘advance related fraud’.
However, there has been a slight decline in the number of card and internet related frauds across all bank groups as compared to last year, which can be a positive sign towards digital security.
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