TL;DR India reported fewer banking fraud cases in 2024–25 than in the previous year, but the total money involved rose sharply. The number of frauds fell from about 36,000 in 2023–24 to nearly 24,000 in 2024–25, a decline of around 34%. In contrast, the amount involved jumped from about ₹11,300 crore to nearly ₹34,800 crore, more than three times higher. This unusual trend was largely driven by the fresh reporting of high-value loan frauds, especially related to advances. In simple terms, everyday fraud has reduced, but a few large cases have pushed losses up sharply.
Context
Fraud is one of those risks most bank customers worry about, even if they never experience it directly. A missed OTP alert, an unexpected debit card charge, or news of a large corporate loan turning fraudulent can quickly dent confidence in the banking system.
For banks, fraud is not just about money lost. They lead to reputational damage, legal costs, and operational stress. The Report on Trend and Progress of Banking in India 2024–25 offers a detailed view of how banking frauds have changed over time. One clear message from the data is that fraud trends do not move in a straight line. Some years see many small frauds, while others see fewer cases but much larger amounts involved.
Who Compiles This Data?
The data on banking frauds is compiled by the Reserve Bank of India (RBI) and published annually in the Report on Trend and Progress of Banking in India. Banks and financial institutions are required to report frauds of ₹1 lakh and above to the RBI.
Importantly, these figures are based on the date of reporting, not the year in which the fraud actually occurred. A fraud committed years earlier may be detected, investigated, and officially reported much later. As a result, sudden spikes or drops in a given year may reflect reporting practices rather than real-time changes in criminal activity.
Where can I download Clean & Structured Data on Banking Frauds?
Clean, structured, and ready-to-use datasets on year-wise banking frauds by type of operation, number of cases, and amount involved can be downloaded from Dataful.
Key Insights
Fewer fraud cases, but a sharp jump in money involved
The year-wise trend clearly shows a disconnect between the number of frauds and the value involved.
- In 2021–22, banks reported about 8,900 frauds, involving nearly ₹36,600 crore.
- In 2022–23, cases increased to around 13,500, with the amount involved falling to about ₹16,500 crore.
- In 2023–24, the number of frauds peaked at roughly 36,000, but the amount involved dropped further to about ₹11,300 crore.
- In 2024–25, fraud cases fell sharply to about 23,900, but the amount involved surged to nearly ₹34,800 crore.
In percentage terms, the number of frauds declined by about 34% between 2023–24 and 2024–25, while the amount involved rose by over 200%. This reversal is one of the most striking features of the latest data.
Advances continue to dominate high-value frauds
A breakdown by area of operation shows that frauds related to advances account for the bulk of losses. In 2024–25, advance-related frauds numbered under 8,000 cases, but involved nearly ₹32,000 crore. This alone made up over 90% of the total amount involved in banking fraud that year.
This pattern is consistent over time. When large corporate or consortium loans turn fraudulent, they tend to involve thousands of crores in a single case, unlike retail frauds that usually involve smaller amounts per incident.
Card and internet frauds are many, but usually small in value
Digital payments are now part of daily life, from groceries to utility bills. It is therefore not surprising that card and internet frauds account for a large share of reported cases.
In 2023–24, card and internet frauds crossed 29,000 cases, forming the majority of all fraud incidents. However, the amount involved was about ₹1,457 crore, far lower than losses linked to advances.
In 2024–25, both the number and value of card and internet fraud declined. This could reflect better real-time alerts, transaction limits, and growing customer awareness, even as digital transactions continue to rise.
A reporting-driven anomaly explains the 2024–25 spike
The sharp rise in the amount involved in 2024–25, despite fewer cases, appears anomalous at first glance. The RBI has provided a clear explanation.
During the year, banks re-examined and freshly reported 122 fraud cases amounting to about ₹18,336 crore. These cases belonged to earlier financial years but were reclassified to comply with a Supreme Court judgment dated 27 March 2023, which stressed adherence to principles of natural justice in fraud classification.
In effect, these were not new frauds, but older cases that were formally recognised after review, inflating the value reported for the year.
Why Does It Matter?
For individuals, banking fraud is personal. A blocked card or disputed transaction can disrupt daily life. At the system level, the data reveals a deeper pattern.
- Frauds are declining in number but becoming more concentrated in value, increasing exposure to a small number of large cases.
- Loan-related frauds remain the biggest risk to bank balance sheets, far outweighing retail digital frauds in monetary terms.
- Legal and regulatory changes can significantly alter year-wise figures, reminding us that fraud data reflects not only crime, but also compliance and reporting standards.
For policymakers, this underlines the need to strengthen early detection and monitoring of large loans, alongside customer-level digital safeguards. For customers, the picture is mixed. Everyday fraud risks may be easing, but large banking frauds still have the potential to strain the financial system, with indirect consequences for everyone.
Key Numbers (2021–22 to 2025–26*)
Data for 2025–26 is up to September 2025.
- Number of Frauds (in absolute number):
2021-22: 8,941 → 2023-24: 36,052 → 2025-26: 5,092 - Amount Involved (in crore):
2021-22: ₹36,618 → 2023-24: ₹11,261 → 2025-26: ₹21,515
