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 totalnumber of frauds decreased to 23,879 cases as comparted with 36,052 cases in the previous year.
However, theamount involved in frauds increased to ₹34,771 crore from ₹11,261 crore in 2023-24.
“This wasmainly due to re-examination and reportingafresh of 122 fraud cases amounting to ₹18,336 crore after ensuring compliance with thejudgement of the Supreme Court ofIndia 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 ofoccurrence of frauds, during 2024-25, the shareof card / internet frauds in the total stood at 66.8% in terms of number of cases. In termsof amount, the share of advances-related fraudswas 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 theamount involved.
WithinPVBs, card/internet-related frauds accountedfor the largest share by number, while fraudsrelated to advances constituted the largestshare by value in 2024-25.
In contrast, PSBsreported the highest share of frauds related toadvances, both in terms of number of cases andthe amount involved. The share of card/internetfrauds declined across all bank groups in bothnumber and amount involved during 2024–25.
“The share of advances-related frauds, both interms of number and amount, increased acrossall bank groups (except for PSBs in terms ofamount), primarily due to a significant portionof reclassified frauds being associated with advances,” the RBI said.
Banks remain resilient
Overall, the Indian commercial banking sectorremained resilient during 2024-25, supported bydouble-digit balance sheet expansion. Depositsand credit of scheduled commercial banksgrew in double digits, albeit with a moderationfrom last year, the report said.
The transmission of policy rateeasing during 2025 to deposit and lending ratescontinued. Profitability of scheduled commercialbanks remained robust with an increase inreturn on assets, it said.
Banks maintained their strongcapital position with capital to risk-weightedassets ratio and leverage ratio remaining wellabove the regulatory requirements.
The consolidated balance sheet of scheduled commercial banks (SCBs) (excludingRRBs) 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 during2024-25, albeit at a slower pace compared to theprevious year. “This partly reflected the impactof 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 continueto face competition from non-bank sourcesin meeting the resource requirements of thecommercial sector.
“Furthermore, rapidlychanging technology and digitalisation couldchange the way people transact with banksfor their savings and credit needs, while alsoexposing the banking system to newer risksincluding cyber risk,” it said.
“Strengthening riskassessment and improving operational efficiencythrough responsible technology adoption remainessential, with continued emphasis on financialinclusion, consumer education and protection.Robust corporate governance with strong riskmanagement practices remains critical forbanks’ long-term success,” it emphasized.
Published – December 29, 2025 08:22 pm IST
