The Finance Ministry has reported a decrease in the total value of bank frauds over the past three financial years, despite a rise in the number of reported fraud cases. Data presented in the Rajya Sabha shows that the total amount involved in fraud cases of ₹1 lakh and above dropped significantly from ₹9,298 crore in FY 2021-22 to ₹2,715 crore in FY 2023-24.
However, while the total value of frauds decreased, the number of fraud cases increased, especially in private sector banks. Leading private banks, including HDFC Bank, ICICI Bank, and Axis Bank, saw a steady rise in the number of fraud cases. For example, HDFC Bank’s fraud cases surged from 582 in FY 2022 to 5,477 in FY 2024, with the amount involved reaching ₹624.41 crore. Similarly, ICICI Bank recorded 6,588 cases in FY 2024, up from 1,336 in FY 2022, although the total amount involved dropped to ₹322.61 crore.
Below is a summary of the number of fraud cases for selected private sector banks:
| Bank Name | FY 2021-22 | FY 2022-23 | FY 2023-24 |
|---|---|---|---|
| HDFC Bank | 582 | 2,870 | 5,477 |
| ICICI Bank | 1,336 | 1,912 | 6,588 |
| Axis Bank | 817 | 1,988 | 4,521 |
| IndusInd Bank | 1,376 | 1,611 | 2,085 |
| Kotak Mahindra Bank | 923 | 706 | 874 |
In contrast, public sector banks showed better control over frauds, with both the number of cases and the amounts involved declining overall. For instance, State Bank of India (SBI) recorded 2,478 fraud cases in FY 2024, a rise from FY 2022, but the total amount involved decreased to ₹223.92 crore. Punjab National Bank (PNB), which reported ₹2,449.14 crore in frauds in FY 2022, saw a dramatic drop to ₹89.80 crore in FY 2024.
Here is a summary of the number of fraud cases for selected public sector banks:
| Bank Name | FY 2021-22 | FY 2022-23 | FY 2023-24 |
|---|---|---|---|
| State Bank of India | 1,035 | 1,739 | 2,478 |
| Punjab National Bank | 116 | 100 | 364 |
| Bank of Baroda | 124 | 270 | 1,342 |
| Canara Bank | 83 | 83 | 26 |
| Union Bank of India | 126 | 269 | 170 |
In response to the increasing number of fraud cases, the Reserve Bank of India (RBI) introduced revised Master Directions on Fraud Risk Management in July 2024. The new guidelines aim to strengthen governance, improve internal controls, and enhance fraud detection systems. Key measures include:
- Strengthening governance: Enhancing the role of bank boards in overseeing fraud risk management.
- Robust internal controls: Implementing stronger internal audit and control frameworks.
- Early detection systems: Improving frameworks for early warning signals and red-flagging accounts to detect and prevent frauds promptly.
- Data analytics units: Mandating the establishment of dedicated data analytics and market intelligence units in banks to identify potentially fraudulent activities early.
These measures are expected to help banks better manage fraud risks and prevent financial losses.
