Despite several safeguarded and technology interventions, fraudsters continued to game the banking system and duped both lenders and depositors as indicated in a statutory report by the Reserve Bank of India (RBI).
The amount involved in bank frauds was seen rising though the number of cases were on a decline as reported in the latest Report on Trend and Progress of Banking in India 2024-25, released by the Reserve Bank of India (RBI) on Monday.
During 2024-25, based on date of reporting by banks, the total number of frauds decreased to 23,879 cases as comparted with 36,052 cases in the previous year.
However, the amount involved in frauds increased to ₹34,771 crore from ₹11,261 crore in 2023-24.
“This was mainly due to re-examination and reporting afresh of 122 fraud cases amounting to ₹18,336 crore after ensuring compliance with the judgement of the Supreme Court of India dated March 27, 2023,” the RBI said in the report.
In the April-September period of 2025-26, the number of fraud cases declined to 5,092 from 18,386 cases in April-September 2024-25. However the amount increased to ₹21,515 crore from ₹16,569 crore in the first half of the previous year.
Based on the date of occurrence of frauds, during 2024-25, the share of card / internet frauds in the total stood at 66.8% in terms of number of cases. In terms of amount, the share of advances-related frauds was 33.1%.
In 2024-25, Private Sector Banks (PVBs) accounted for 59.3% of the total number of frauds reported, while Public Sector Banks (PSBs) accounted for 70.7% of the amount involved.
Within PVBs, card/internet-related frauds accounted for the largest share by number, while frauds related to advances constituted the largest share by value in 2024-25.
In contrast, PSBs reported the highest share of frauds related to advances, both in terms of number of cases and the amount involved. The share of card/internet frauds declined across all bank groups in both number and amount involved during 2024–25.
“The share of advances-related frauds, both in terms of number and amount, increased across all bank groups (except for PSBs in terms of amount), primarily due to a significant portion of reclassified frauds being associated with advances,” the RBI said.
Banks remain resilient
Overall, the Indian commercial banking sector remained resilient during 2024-25, supported by double-digit balance sheet expansion. Deposits and credit of scheduled commercial banks grew in double digits, albeit with a moderation from last year, the report said.
The transmission of policy rate easing during 2025 to deposit and lending rates continued. Profitability of scheduled commercial banks remained robust with an increase in return on assets, it said.
Banks maintained their strong capital position with capital to risk-weighted assets ratio and leverage ratio remaining well above the regulatory requirements.
The consolidated balance sheet of scheduled commercial banks (SCBs) (excluding RRBs) increased by 11.2% during 2024- 25 as compared with 15.5% during 2023-24.
On the assets side, bank credit and investments increased by 11.5% and 9.2%, respectively, in 2024-25. On the liabilities side, deposits increased by 11.1% in 2024-25.
Net profits of SCBs increased during 2024-25, albeit at a slower pace compared to the previous year. “This partly reflected the impact of moderation in growth of net interest income,” the RBI said.
The capital to risk weighted assets ratio of SCBs was 17.4% at end-March 2025 and 17.2% at end-September 2025.
Asset quality strengthened further, with the gross non-performing assets (GNPA) ratio declining to a multi-decadal low of 2.2% at end-March 2025 and 2.1% at end-September 2025.
The consolidated balance sheet of urban co-operative banks recorded higher growth in 2024-25 than that in the previous year. Their asset quality improved for the fourth consecutive year, alongside strengthening of their capital buffers and profitability.
The non-banking financial companies continued to record double digit credit growth along with robust capital buffers. Their asset quality also improved during the year.
Non-banks to intensify competition
Going forward, the RBI in the report said banks would continue to face competition from non-bank sources in meeting the resource requirements of the commercial sector.
“Furthermore, rapidly changing technology and digitalisation could change the way people transact with banks for their savings and credit needs, while also exposing the banking system to newer risks including cyber risk,” it said.
“Strengthening risk assessment and improving operational efficiency through responsible technology adoption remain essential, with continued emphasis on financial inclusion, consumer education and protection. Robust corporate governance with strong risk management practices remains critical for banks’ long-term success,” it emphasized.
Published – December 29, 2025 08:22 pm IST
