Frauds in the banking system shot up by 74 per cent to Rs.71,543 crore in financial year 2018-19 compared with frauds worth Rs. 41,167 crore committed in the financial year 2017-18, the Reserve Bank of India said in its annual report on Thursday. The average lag between the date of occurrence of frauds and its detection by banks was 22 months, the Reserve Bank's report said.
“Among bank groups, state-run lenders, which constitute (the) largest market share in bank lending, have accounted for the bulk of frauds reported in 2018-19. It was followed by private sector banks and foreign banks,” according to the RBI's report.
Frauds related to loans constituted the dominant share of the total amount involved in frauds in 2018-19, while the share of frauds in off-balance sheet items declined from a year ago. Frauds relating to card/internet banking and deposits constituted only 0.3 per cent of the total value of frauds in 2018-19, the central bank's report added.
72 cheating and forgery cases were the major components, followed by misappropriation and criminal breach of trust. Fraud cases involving an amount of less than Rs. 1 lakh were only 0.1 per cent of the total amount involved in 2018-19, the Reserve Bank of India's annual report concluded.-NDTV