According to the Reserve Bank of India (RBI) Annual Report 2021-22, private sector banks witnessed the highest number of frauds in 2021-22, while public sector banks contributed the most in terms of fraudulent value. It also showed that although the number of fraud cases reported by banks and other financial institutions increased during 2021-22, the amount involved was half of the amount involved a year ago.
“Bank group-wise assessment of fraud cases in the last three years indicates that private sector banks reported maximum number of frauds, while public sector banks contributed maximum amount of frauds. The frauds have been occurring mainly in the loan portfolio (advance category) both in terms of number and value,” the report said.
In terms of number of frauds, private sector banks reported the highest number of cases at 5,334 in 2021-22, followed by public sector banks (3,078), foreign banks (494), small finance banks (155), payments banks ( 30), financial institutions (10) and local area banks (2), according to the report.
In terms of fraudulent value, public sector banks reported the highest amount of Rs 40,282 crore during 2021-22, followed by private sector banks (Rs 17,588 crore), financial institutions (Rs 1,305 crore), foreign banks (Rs 1,206 crore). Rs), small finance banks (Rs 30 crore), local area banks (Rs 2 crore) and payments banks (Rs 1 crore).
The total number of frauds during 2021-22 was 9,103 as against 7,359 in the previous year. However, the total amount involved in all frauds during 2021-22 stood at Rs 60,414 crore, which is less than half of the Rs 1,38,211 crore recorded in the previous financial year, as per the annual report.
The RBI’s annual report said, “While the number of frauds reported by private sector banks was mainly on account of small value card/internet frauds, the amount of frauds reported by public sector banks was mainly due to loan frauds.” portfolio.”
There has been fraud in the loan portfolio, both in terms of number and value. In the number of frauds, advances were 42.2 per cent and in value terms it was around 97 per cent at Rs 58,328 crore. Card/Internet frauds accounted for 39.5 per cent of the number, but in value terms it was only 0.2 per cent.
It said that analysis of the vintage of frauds reported during 2020-21 and 2021-22 shows a significant time lag between the occurrence of fraud and its detection – accounting for 93.73 per cent of frauds by value in 2021-22 . In the previous financial years 2020-21, 91.71 per cent was registered.
Steps to combat fraud
RBI launched its first global hackathon ‘Harbinger 2021 – Innovation for Transformation’ in November 2021, with the following four problem statements: (a) Innovative, easy-to-use, non-mobile digital to convert small-ticket cash Payment Solutions Transactions in digital mode; (b) context-based retail payments to remove the physical act of payment from the payment experience; (c) alternative authentication mechanisms for digital payments; and (d) social media analytics monitoring tools to detect digital payment fraud and disruption.
According to the annual report, the Technology Vision Document for Cyber Security, which was released for UCBs on September 24, 2020, envisages achieving its objective through a five-pillar strategic approach called Guard, ie Governance Oversight, util. technology Investment, appropriate regulation and supervision, strong collaboration, and developing the necessary IT and cyber security skills.
read all breaking news , today’s fresh news And IPL 2022 Live Updates Here.