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Public sector banks account for 85% of over 6,500 bank fraud cases: RBI

Of the the nearly 6,500 bank fraud cases, it is public sector banks that account for an astounding 85 percent of them resulting in an over Rs 30,000 crore, according to the Reserve Bank of India’s (RBI) Financial Stability Report, according to a Economic Times report.

The top 10 banking frauds in 2018 lead to a financial loss of Rs 10,000 crore, the ET report said. Banks had reported nearly 5,000 frauds amounting to Rs 20,000 crore in fiscal year 2017.

Representational image.

Representational image.

“In recent years, frauds reported (For more than Rs 1 lakh) in the Indian banking sector show an increasing trend both in terms of number and quantum. In terms of the relative share of frauds, PSBs have a disproportionate share (more than 85 per cent) significantly exceeding their relative business share,” the RBI report said.

Majority of the banking frauds was loan-related. This was seen in the sharp rise in card and internet banking related scams, a report in the Mint said. According to RBI data, the share and size of PSU bank frauds was higher than credit share at 65 percent and deposit share at 75 percent.

The frauds were on account of poor credit screening and deficiency in oversight of the account by the lead bank have led to huge rise in frauds in state-owned banks, the Mint report added.

Updated Date: Jun 27, 2018 08:15 AM

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