The number of fraud cases reported by private banks accounted for 66.2% of the total cases.
Indian banks reported a total of 12,069 card and internet-related digital frauds in the first half of FY24 (April-September), amounting to Rs 630 crore, seven times higher than 87 crore fraud during the corresponding period of the previous financial year, says the report, Banking Sector Trends and Progress 2023 by the Reserve Bank of India (RBI).
Overall, lenders reported a total of 14,483 scams amounting to Rs 2,642 crore, the lowest in six years. “Based on the date of fraud occurrence, the average amount involved decreased during 2022-2023, with the number of incidents concentrated on card or internet related frauds,” the report said.
The number of fraud cases reported by private banks accounted for 66.2% of the total cases, while in terms of numbers, public sector banks accounted for a higher share. The majority of fraud cases in public sector banks were related to advances, while private lenders accounted for the majority of cases related to cards, internet and cash.
Along with the overall decline in frauds, the RBI also fined lenders less in FY23 compared to FY22. For example, the regulator imposed a total fine of 3 .7 crores on seven non-compliance cases in public sector banks in FY23, compared to a fine of Rs 17.6 crore imposed in 13 cases in FY22.
Private banks were fined more than public sector banks in FY23, with the regulator imposing a penalty of Rs 12.2 crore for seven violations by these lenders. The central bank has imposed the highest penalty on cooperative banks, as it has imposed a fine of Rs 14 crore for 176 violations by this category of lenders.
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