The number of frauds has risen significantly in 2018-2019 compared to what was ever recorded. Fraud cases reported by lenders reached 6801 as against 5,916 cases in 2017-2018, private sector lenders took 30.7% and foreign banks accounted for 11.2% of the total fraud. Public Sector Banks (PSBs’) share in the fraud was at 91.6%. According to a report by the Reserve Bank of India, there was a total fraud of Rs 71,543 crore in 2018-2019, a 74% rise from 2017-2018 Rs41, 167.
90.2% of the amount involved was a result of inadequacies of internal operations, people and systems to tackle operational risks. The report has attributed the significant jump in percentage to the framework issued by the government in 2018, aimed to facilitate early detection and investigation of frauds in PSBs especially evaluating accounts exceeding Rs 50 crore.
