Card, web frauds enhance to Rs 155 crore in 3,596 instances

Card and web associated frauds elevated to Rs 155 crore involving 3,596 instances throughout the yr ended March 2022 as in opposition to frauds price Rs 119 crore in 2,545 instances within the earlier yr. Overall, the variety of financial institution frauds elevated whereas the worth concerned in frauds declined.

According to the RBI Annual Report, off-balance sheet frauds have been Rs 1,077 crore in 21 instances as in opposition to Rs 535 crore frauds in 23 instances.

However, the worth of whole frauds reported by banking system declined to Rs 60,414 crore involving 9,103 instances as of March 22, 2022 as in opposition to Rs 138,211 crore in 7,359 instances within the earlier yr. Of this, frauds price Rs 40,282 crore have been reported by PSU banks and Rs 17,588 crore by personal banks

The RBI stated frauds been occurring predominantly within the mortgage portfolio (advances class), each by way of quantity and worth. While the variety of frauds reported by personal sector banks have been primarily on account of small worth card/web frauds, the fraud quantity reported by public sector banks was primarily in mortgage portfolio, it stated.

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An evaluation of the classic of frauds reported throughout 2020-21 and 2021-22 exhibits a big time-lag between the date of prevalence of a fraud and its detection. 93.73 per cent of the frauds in 2021-22 by worth occurred in earlier monetary years as in opposition to 91.71 per cent recorded in 2020-21. “The Reserve Bank continues to remain engaged with the SCBs in implementing system driven NPA identification, with a view to ensuring prompt and error-free recognition of asset impairment,” it stated.