Jammu and Kashmir Bank has disclosed 32 fraud cases amounting to ₹320 crore over the past three financial years, as per data shared by Union Finance Minister Nirmala Sitharaman in the Rajya Sabha.
The financial year 2022-23 emerged as the most concerning, with 13 cases resulting in losses of ₹298 crore. This figure dwarfs the fraud amounts of previous years. In 2021-22, there were 11 fraud cases totaling ₹14.2 crore, while the 2023-24 fiscal year recorded 8 cases involving ₹8 crore.
Minister of State for Finance Pankaj Chaudhary highlighted broader trends based on Reserve Bank of India (RBI) data, showing a national decline in banking frauds. The total value of fraudulent activities fell from ₹9,298 crore in 2021-22 to ₹3,607 crore in 2022-23, and further dropped to ₹2,715 crore in 2023-24.
RBI’s New Fraud Prevention Measures:
To address these challenges, the RBI introduced new fraud risk management guidelines on July 15, 2024. These guidelines require banks to implement advanced governance practices, establish data analytics units, strengthen internal controls, and develop early warning systems to identify and prevent potential frauds.
Experts Weigh In:
While the declining trend in fraud amounts offers some reassurance, the staggering ₹298 crore loss in 2022-23 raises concerns about the evolving tactics of fraudsters. Banking analysts have called for greater oversight, improved technology, and enhanced security protocols to address structural vulnerabilities in the financial system.
Public Trust at Stake:
The implications of these frauds extend beyond financial losses. Experts warn that repeated incidents could erode public trust in the banking sector, deter investments, and add to the economic challenges of Jammu and Kashmir, a region already facing significant financial uncertainty.
Local banking officials declined to comment on the specifics of the fraud cases, but the revelations have ignited discussions about the effectiveness of current fraud detection systems and the need for robust preventive measures.
