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
NCST Holds Review Meeting with NHPC
NCST Holds Review Meeting with NHPC on Implementation of Safeguards for Scheduled Tribe Employees
MP CM Collector Award Niti Aayog
Sampurnata Abhiyan: Madhya Pradesh Leads NITI Aayog Campaign; Collectors from 8 Districts Win Gold
Mohan Yadav
MP CM Mohan Yadav Pushes for Sustainable, Community-Driven Rural Water Policy; Targets 100% Tap Coverage by March 2027
Ajay Bhadoo IAS
IAS Ajay Bhadoo Gets Extended Term as DGFT - What It Means & His Career Journey
THDCIL_Receives_ABMS_Certification_for_Integrity_and_Transparency
THDC India (THDCIL) Awarded ISO 37001:2016 Anti-Bribery Certification by BIS - Details Inside
Ministry of Environment
Environment Ministry Clarifies Petrol Vehicle Tender, Cites E-Vehicle Flexibility
Bokaro Steel Plant
PESB Selects Priya Ranjan to Head Bokaro Steel Plant, SAIL’s Key Production Unit
REC Limited wins ‘Best Design Thinking Award’ at 5th Distinguished NBFC (DNA) Awards
REC Limited Bags ‘Best Design Thinking Award’ at 5th Distinguished NBFC Awards
ADVERTISEMENT
ADVERTISEMENT
Videos
Dr
Resisted Flawed Schemes, Transferred Thrice In Three Months, Found Solace In Writing
WhatsApp Image 2025-08-11 at 4.48
IAS SVR Srinivas on Mumbai Trans Harbour Link, Tough Calls, and the Real Power of IAS Officers | Video Interview
WhatsApp Image 2025-08-08 at 5.25
Dharavi Redevelopment: IAS Minds Turning 100-Year-Old Slum into a Modern City | Video Interview
ADVERTISEMENT
UPSC Stories
IAS Minnu P M
“Lazy, Sleepy, Yet Determined”: Minnu P M’s Honest Take on Cracking UPSC
Minnu PM, once a clerk in Kerala Police, cleared UPSC with AIR 150 after five years of struggle. Her...
IPS Ashish Tiwari
From IIT and Investment Banking to Public Service, Meet IPS Ashish Tiwari 
Ashish Tiwari, IIT graduate and former investment banker, chose public service over global finance. As...
WhatsApp Image 2025-08-12 at 7.27
First Attempt IRS, Fourth Attempt IPS: The Relentless Pursuit of Jitendra Kumar Yadav Who Cracked UPSC 3 Times
IPS Yadav is originally from Chhattisgarh. He was first selected for the IRS through UPSC and later for...
Social Media
Masahiro Hara
From Go Board to Global Use, How QR Codes Changed the World: IRAS Officer Ananth Rupanagudi Spotlights Masahiro Hara’s Vision
IRAS officer Ananth Rupanagudi shared a video on Masahiro Hara, the inventor of QR codes, highlighting...
IFS Susanta Nanda Video
A Mother’s Duty: Tigress Watches Over Cubs Splashing in Waterhole — Heartwarming Video Shared By Retd. IFS Officer Susanta Nanda
A tender wildlife video shared by Retd. IFS officer Susanta Nanda shows a tigress keeping watch over...
Mohanmala
Kaziranga Mourns: Beloved Elephant Mohanmala Passes Away After Five Decades of Service
Kaziranga National Park mourns the loss of Mohanmala, a beloved elephant who served over 50 years as...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
NCST Holds Review Meeting with NHPC
NCST Holds Review Meeting with NHPC on Implementation of Safeguards for Scheduled Tribe Employees
MP CM Collector Award Niti Aayog
Sampurnata Abhiyan: Madhya Pradesh Leads NITI Aayog Campaign; Collectors from 8 Districts Win Gold
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
Dr
WhatsApp Image 2025-08-11 at 4.48
WhatsApp Image 2025-08-08 at 5.25
ADVERTISEMENT
ADVERTISEMENT