https://indianmasterminds.com

ADVERTISEMENT
ADVERTISEMENT

Bank Frauds Triple in FY25 Due to Reclassification: RBI Report

The report highlighted that digital payment channels—especially those involving cards and internet transactions—accounted for the majority of frauds in terms of number. However, when it came to the total amount involved, most frauds were linked to loans and advances.
Indian Masterminds Stories

The Reserve Bank of India (RBI) has revealed that the total value of banking frauds surged nearly threefold to ₹36,014 crore in the financial year 2024–25 (FY25), compared to ₹12,230 crore in FY24. This significant rise is primarily attributed to the reclassification of 122 earlier cases following a Supreme Court ruling dated March 27, 2023.

Despite the spike in fraud value, the number of reported fraud cases actually declined to 23,953 in FY25 from 36,060 the previous year. The RBI clarified that the rise in fraud value stems from the fresh reporting of previously excluded cases worth ₹18,674 crore, which were reviewed and reclassified in compliance with the court judgment.

The report highlighted that digital payment channels—especially those involving cards and internet transactions—accounted for the majority of frauds in terms of number. However, when it came to the total amount involved, most frauds were linked to loans and advances.

Private sector banks were found to be more prone to digital payment-related frauds, contributing to nearly 60% of the total fraud cases. On the other hand, public sector banks bore the brunt in terms of the financial impact, with over 71% of the total fraud value and a concentration in the loan segment.

Overall, over 33% of the fraud cases were related to advances, and they represented a massive 92% of the total value. Notably, frauds involving cards and online payments accounted for 13,516 cases, or 56.5% of all incidents reported in FY25.

The RBI noted that the figures only include cases involving amounts of ₹1 lakh or more and may be revised as institutions update their data. It also clarified that the total fraud amount does not equate to actual losses, as some of the funds may be recovered or were not fully diverted.

To tackle the growing threat of digital fraud, the RBI announced plans to launch dedicated internet domains—’bank.in’ for banks and ‘fin.in’ for non-bank financial entities. This initiative, to be managed by the Institute for Development and Research in Banking Technology (IDRBT), aims to bolster cybersecurity, reduce phishing threats, and enhance public trust in digital banking platforms. Domain registrations for financial institutions are expected to begin in FY26.


Indian Masterminds Stories
ADVERTISEMENT
ADVERTISEMENT
Related Stories
ADVERTISEMENT
ADVERTISEMENT
NEWS
IAF MRFA project
114 Fighters, One Mission — MoD Pushes for 100% Indian Involvement in IAF MRFA Project
Ias sam rizvi
Hyderabad: Principal Secretary IAS SAM Rizvi Opts for Voluntary Retirement Amid Dispute with Telangana Excise Minister Jupally Krishna Rao
MP-Police-
Madhya Pradesh IPS Transfers: 7 Senior Officers Shifted in Midnight Reshuffle; Rajababu Singh, Irshad Wali Among Key Names
Powergrid
POWERGRID Strengthens National Grid Connectivity with Acquisition of 2 Key TBCB Projects Worth ₹3,375 Crore
CM Nitish Kumar
Bihar’s Bold Leap: CM Nitish Kumar Pledges 1 Crore Jobs and Women’s Empowerment Boost
8th pay commission
Big Breaking! 8th Pay Commission May Merge DA With Basic Pay: A Historic Salary Reform Set to Reshape Government Pay Structure
ONGC_resized
ONGC Launches 2025 Apprenticeship Program with 2,623 Vacancies — Empowering India’s Youth for Energy Sector Careers
PNB-resized
PNB Unlocks Rs 1,007 Crore by Selling 10% Stake in Canara HSBC Life Ahead of IPO — Strategic Move to Strengthen Core Operations
ADVERTISEMENT
ADVERTISEMENT
Videos
WhatsApp Image 2025-10-19 at 12.23
UPSC Journey Should Be Enjoyable, Not Cumbersome
WhatsApp Image 2025-10-16 at 15.16
The Many Facets of Former IRS Officer and Author, Giselle Mehta | Video Interview
IDES Saquib Alam
Beyond IAS and IPS: The Inspiring Work of an IDES officer | Video Interview 
ADVERTISEMENT
UPSC Stories
IAS Rupal Rana UPSC
How Rupal Rana Cracked UPSC CSE 2023 with AIR 26 After Four Attempts
UPSC Topper Rupal Rana secured AIR 26 in 2023 after four attempts. Learn her preparation strategy, booklist,...
Ankita Parashar RAS 2023
4 Attempts, 1 Dream, 0 Excuses: Meet RAS Topper Ankita Parashar, Who Fulfilled a Daughter’s Promise & Secured Rank 2 | Exclusive Interview
Ankita Parashar, a teacher-turned-officer from Pushkar, fulfilled her late father’s dream by securing...
Kushal Chaudhary RAS
From Lab Assistant’s Grit to Rajasthan Topper: How Kushal Chaudhary Topped RAS 2023 with Self-Study | Preparation, Strategy & Interview
Kushal Chaudhary, a farmer’s son and lab assistant from Ajmer, topped RAS 2023 through self-study, overcoming...
Social Media
IFS Parveen Kaswan
Heartbreak by the River: 15-Day-Old Elephant Calf Rejected by Mother, Rescued by IFS Parveen Kaswan and His Team
Jaldapra, West Bengal: In a moving incident that tugs at the heart, a 15-day-old elephant calf was rescued...
Ashwini Bhide IAS and Anand Mahindra
Who Is IAS Ashwini Bhide, Hailed as a Role Model for Mumbai Metro Transformation by Anand Mahindra?
From heritage to high-tech: Bhide’s leadership in Metro Line 3 earns public praise and admiration
World Rhino Day India
On World Rhino Day, IFS Officer Parveen Kaswan Shares Rare Insights - India Now Hosts 80% of the World’s One-Horned Rhinos
September 22 Marks Global Call for Rhino Conservation; India Holds 80% of World’s Greater One-Horned...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
IAF MRFA project
114 Fighters, One Mission — MoD Pushes for 100% Indian Involvement in IAF MRFA Project
Ias sam rizvi
Hyderabad: Principal Secretary IAS SAM Rizvi Opts for Voluntary Retirement Amid Dispute with Telangana Excise Minister Jupally Krishna Rao
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
WhatsApp Image 2025-10-19 at 12.23
WhatsApp Image 2025-10-16 at 15.16
IDES Saquib Alam
ADVERTISEMENT
ADVERTISEMENT