Big Bank Frauds Are On The Rise

Rbi Red-Flags Slow Detection Time Of 55 Months

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THE number of cases of frauds reported by banks shot up by 15 per cent in 2018-19 over the previous year, with the amount involved leaping by as much as 73.8 per cent in the year, according RBI's annual report.

The banking sector reported 6,801 frauds involving Rs 71,542.93 crore in 2018-19, up from 5,916 cases involving Rs 41,167.04 crore registered in 2017-18. Most of the frauds fell in the big category exceeding Rs 100 crore.

Public sector banks, which also constitute the largest market share in bank lending, have accounted for the bulk of frauds reported in 2018-19.

This was followed by private sector banks and foreign banks. State-run banks reported 3,766 cases of frauds worth Rs 64,509.43 crore in 2018-19 as against 2,885 cases involving Rs 38,260.8 crore in the preceding year.