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This marked an eightfold jump in the amount compared to ₹2,623 crore across 14,480 cases during the same period last year, based on the date of reporting.
The report highlighted significant risks posed by frauds, including reputational, operational, and business risks, as well as a potential erosion of customer confidence. For the 2023-24 fiscal as a whole, however, the RBI noted that the amount involved in frauds was the lowest in a decade, and the average value was the lowest in 16 years.
Digital frauds accounted for a significant share, with internet and card frauds making up 44.7% of the amount and 85.3% of the cases reported in FY24. Private sector banks accounted for 67.1% of the total cases, while public sector banks had the highest share in terms of the amount involved.
The RBI also observed a rise in penalties imposed on regulated entities across most bank groups in 2023-24, with the total penalty amount more than doubling to ₹86.1 crore, led by public and private sector banks. In contrast, penalties on co-operative banks declined.
Also read: Banks’ bad loan ratio hits 13-year low as financial health improves: RBI report
Unscrupulous players in the digital lending space remain a concern, with the RBI working on creating a public repository of digital lending apps (DLAs) associated with regulated entities to assist customers in verifying claims.
Highlighting the rise in digital frauds involving social engineering attacks and mule accounts, the RBI stressed the need for banks to strengthen customer onboarding and transaction monitoring systems.
Effective coordination with law enforcement agencies is also essential to address systemic risks and curb fraudulent activities, the report said.
(Edited by : Shoma Bhattacharjee)
