Number of cases of Bank frauds declined in FY21: RBI – The Hindu BusinessLine

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The amount involved in frauds in various banking operations based on the date of occurrence declined to ₹1,38,422 crore in FY21 against ₹1,85,468 crore in FY20, according to the Reserve Bank of India’s Report on Trend and Progress of Banking in India 2020-21. The number of cases of fraud too declined to 7,363 in FY21 against 8,703 in FY20.

In terms of area of operations, an overwhelming majority of cases were reported during FY21 in terms of number and amount involved related to advances, while frauds concerning card or internet transactions made up 34.6 per cent of the number of cases, the Report said.

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In 2020-21, there was a marked increase in frauds related to private sector banks (PVBs), both in terms of number as well as the amount involved.

During H1 2021-22, PVBs accounted for more than half of the number of reported fraud cases. In value terms, however, the share of PSBs was higher, indicating predominance of high value frauds, RBI said. While the major share of loans-related cases pertained to public sector banks, PVBs accounted for a majority of card/ internet and cash-related cases.

RBI observed that apart from eroding customer confidence, frauds present multiple challenges for the financial system in the form of reputational risk, operational risk and business risk. Meanwhile, in the first half of FY22, the amount involved in Bank frauds declined to ₹36,342 crore against ₹64,261 crore in the year ago period.

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