and other financial institutions reported frauds worth Rs 1.38 trillion in 2020-21, down 25 per cent compared to the previous year, when the amount involved was Rs 1.85 trillion, according to the Reserve Bank of India’s (RBI’s) annual report released on Thursday.


In terms of number, these entities reported 15 per cent fewer frauds in 2020-21, at 7,363, compared to the previous year’s 8,703 cases.





The RBI data takes into account frauds of Rs 1 lakh and above only. Also, the central bank has changed its accounting year to April-March from July-June, and hence the latest report only covers nine months (July 2020-March 2021).


In 2019-20, the total fraud cases involving Rs 1 lakh and above had shot up by 28 per cent by volume and 159 per cent by value.


The RBI data suggests that the share of public sector in frauds, both in terms of number and value, has fallen, while that of private sector increased in the corresponding period.


Furthermore, most frauds are occurring in the loan portfolio of financial institutions, the report says. In 2020-21, the loan portfolio saw 47.5 per cent of the frauds in terms of number and 99 per cent in terms of the amount involved.

“Though the value of frauds reported in the advances category for 2020- 21, in percentage terms, remained almost the same as compared to the last year, the incidence of frauds in the advances category, in terms of number,…

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