With the increase in digital payments in the country, cases of banking fraud have also increased rapidly. In the financial year 2023-24 (FY24), cases of fraud related to banks increased by 166% year-on-year to 36,075. This number was earlier 13,564 in the financial year 2022-23 (FY23). However, the amount involved in fraud in FY24 came down by 46.7% to Rs 13,930 crore from Rs 26,127 crore in FY23. The Reserve Bank of India (RBI) gave information about this while releasing its Annual Report 2023-2024 today i.e. on 30 May. Private banks reported the highest number of fraud cases An assessment of fraud cases in the last three years indicates that while private sector banks reported the highest number of fraud cases, the contribution of public sector banks in terms of the amount involved in fraud remained the highest as before. Private banks have mostly reported fraud in small amount card and internet transactions. Whereas, frauds in public sector banks were mainly related to the loan portfolio. Efforts will be made to prevent fraud and improve payment experience According to the report, efforts will be made to prevent fraud and improve the payment experience under compliance with the ‘Digital Personal Information Protection Act 2023’. Along with this, the possibility of verifying the name of the payment receiver in real time before physical fund transfer will be explored.
