A sum of Rs 36,014 crore was lost to bank frauds in FY25, surging three-fold from the previous year, the Reserve Bank of India's annual report has said, with loan scams dominating the list.
The report released on May 29 said public sector banks (PSBs) accounted for the bulk of the losses, while private sector lenders reported the highest number of cases of fraud.
The RBI acknowledged the growing operational risks in the banking system and said it would enhance its supervisory oversight, especially of private and small finance banks.
“Operational risk in private banks remains elevated, with a surge in reported fraud cases across technology platforms,” the report said.
Public sector banks reported frauds worth Rs 25,667 crore, continuing the trend of high-value loan-related scams. Private banks registered 14,233 fraud cases, the most among all bank groups but the total value of money lost was lower at Rs 10,088 crore.
Most of the private bank cases were linked to digital payment channels such as card and internet-based transactions, highlighting persistent vulnerabilities in tech-driven platforms.
“Digital payments frauds dominated the number of cases reported by private banks,” the RBI said in the report.
The rise in fraud value is particularly notable after a period of decline.
In FY24, the total value of reported frauds across the banking system had dipped to Rs 13,930 crore despite a spike in the number of cases. In FY25, however, the fraud value more than doubled, driven by a resurgence in large-value loan frauds and continued misuse of digital channels.
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