Bank Frauds of Rs 1.42 Lakh Crore Reported in Last Five Financial Years: Govt.
Rs 6,389 crore was recovered during the period; 7,173 FIRs filed in these cases
New Delhi: The government on Tuesday said that banks and financial institutions reported fraud of Rs 1.42 lakh crore in the last five financial years and recovery to the tune of Rs 6,389 crore was made during the period. Besides, 7,173 first information reports (FIRs) were also filed in these cases.
In a written reply to Rajya Sabha, minister of state for finance Pankaj Chaudhary said his ministry has been apprised by Reserve Bank of India (RBI) that it is not maintaining information pertaining to the action taken against wilful defaulters.
However, as per data reported by public sector banks, as on March 31, 2026, suits for recovery were filed against 15,577 wilful defaulters and action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act was initiated in 10,894 cases.
“Public sector banks (PSBs), as on March 31, 2026, have recovered an aggregate amount of Rs 52,360 crore from wilful defaulters. The recovery in accounts classified as fraud is an ongoing process and as per RBI data, an aggregate recovery of Rs 6,389 crore was made in such accounts during the last five financial years,” he said.
“As per the RBI inputs, during the last five financial years, an aggregate amount involved in frauds, based on the date of reporting in Commercial Banks and All India Financial Institutions was Rs 1,42,112 crore. Commercial banks include public sector banks, private sector banks, foreign banks, small finance banks, payments banks, local area banks,” Chaudhary said.
In reply to another question, Chaudhary also said that in FY26, 18,021 complaints were received against banks regarding recovery agencies, which was more than double of 8,623 complaints in the previous year.
“To strengthen safeguards and accountability to protect borrowers from coercive recovery practices, RBI has directed banks, vide a notification dated November 28, 2025, that they shall not resort to undue harassment, and have a due diligence process for engagement of recovery agents,” he said.
