As convenient as digital banking or online banking is, it is also proving to be a cause of trouble. The cases of fraud or fraud related to banking have increased so much that people are always worried that next time a banking fraud may happen to them. The figures released by the Reserve Bank of India on Thursday are shocking. According to PTI news, it said that the first half of the current financial year saw a strong growth in bank fraud cases, which reached 18,461 cases and the amount involved increased more than eight times to Rs 21,367 crore.
Share of internet and card fraud 44.7 percent
The number of frauds during April-September stood at 18,461 involving Rs 21,367 crore, compared to 14,480 involving Rs 2,623 crore in the comparative period of the previous financial year based on the date of reporting, the report said. There were cases. Looking at the entire financial year 2023-24, the central bank said that based on the date of reporting by banks, the amount involved in fraud was the lowest in a decade, while the average value was the lowest in 16 years. Based on date of occurrence of fraud, the share of internet and card fraud in the total in 2023-24 was 44.7 per cent in terms of amount and 85.3 per cent in terms of number of cases.
Fraud presents many challenges
The Reserve Bank of India has released the Report on Trend and Progress of Banking in India 2023-24, which presents the performance of the banking sector, including commercial banks, co-operative banks and non-banking financial institutions, during 2023-24 and 2024-25 . The report said fraud poses multiple challenges to the financial system in the form of reputational risk, operational risk, business risk and a decline in customer confidence with financial stability implications.
Cases related to private sector banks were 67.1 percent
In FY 2023-24, the number of fraud cases reported by private sector banks was 67.1 per cent of the total. However, in terms of amount involved, public sector banks (PSBs) had the highest share of card and internet fraud for all bank groups in 2023-24. The incidence of penalties imposed on regulated entities (REs) has increased across all bank groups except foreign banks and small finance banks during 2023-24. The total penalty amount more than doubled to Rs 86.1 crore in 2023-24, with public and private sector banks leading the way.
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