Bank Report 30% Rise in Fraud Amount in H1FY26

Mumbai: Even as the total number of bank frauds decreased, the amount involved in frauds rose 30 per cent during April to September 2025 said the Reserve Bank of India (RBI) report released on Monday. According to the central bank’s Trends and Progress of Banking in India report, Indian banks reported 5,092 frauds amounting to Rs 21,515 crore in H1FY26, mostly pertaining to advances fraud. During H1FY25, banks had reported a total of 18,386 frauds amounting to Rs 16,569 crore.

“Frauds present multiple challenges by exposing financial institutions to reputational, operational and business risks, while also weakening customer trust. During 2024-25, based on date of reporting by banks, the total number of frauds decreased. However, the amount involved in frauds increased. 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 Hon’ble Supreme Court of India dated March 27, 2023,” said the RBI.

The share of card/internet frauds declined across all bank groups in both number and amount involved during 2024–25. Based on the date of occurrence of frauds, during 2024-25, the share of card / internet frauds in the total stood at 66.8 per cent in terms of number of cases. In terms of amount, the share of advances-related frauds was 33.1 per cent said the RBI.

In FY25, private banks accounted for 59.3 per cent of the total number of frauds reported, while public sector banks (PSBs) accounted for 70.7 per cent of the amount involved. Within private banks, card/internet-related frauds accounted for the largest share by number, while frauds related to advances constituted the largest share by value in FY25. In contrast, PSBs reported the highest share of frauds related to advances, both in terms of number of cases and the amount involved.