Fraud amount jumps 3 times to Rs 36,014 cr in FY 2024-25, public sector banks hit more
Mumbai: The total value of bank frauds reported in the financial year 2024-25 surged to Rs 36,014 crore, three times higher than the Rs 12,230 crore reported in the previous year, the Reserve Bank of India (RBI) said in its annual report released on Thursday. This sharp increase was attributed mainly to the reclassification of 122 past cases, following a Supreme Court ruling in March 2023.
Despite the jump in value, the number of fraud cases fell to 23,953 in FY25 from 36,060 in FY24. “The increase in the amount involved in the total frauds reported during 2024-25 over 2023-24 was mainly due to removal of fraud classification in 122 cases amounting to Rs 18,674 crore reported during previous financial years and reporting afresh during the current financial year after re-examination and ensuring compliance with the judgement of the Hon’ble Supreme Court dated March 27, 2023,” the report noted.
The RBI clarified that the reported figures include frauds of Rs 1 lakh and above and may be updated as reporting entities revise data. “Amounts involved reported do not reflect the amount of loss incurred. Depending on recoveries, the loss incurred gets reduced. Further, the entire amount involved is not necessarily diverted,” it added.
Frauds in digital payments—particularly through cards and internet platforms—accounted for the largest share by number. As of end-FY25, there were 13,516 such cases, making up 56.5 per cent of total reported frauds. In terms of value, however, frauds related to advances or loans dominated, contributing over 92 per cent of the total fraud amount and over 33 per cent of the cases. Private sector banks were responsible for nearly 60% of the fraud cases by number. “While card/internet frauds contributed maximum to the number of frauds reported by private sector banks, frauds in public sector banks were mainly in loan portfolio,” the RBI report stated. Public sector banks accounted for over 71 per cent of the fraud value. To improve security in digital financial transactions, the RBI has proposed the creation of exclusive internet domains—‘bank.in’ for banks and ‘fin.in’ for non-bank financial institutions. “These exclusive domains will help in identifying cyber threats and mitigating risks such as phishing attacks,” the report said.
The Institute for Development and Research in Banking Technology (IDRBT) will serve as the registrar for this initiative, with domain registrations set to begin in FY26.with agency inputs
