Bank frauds worth Rs 5.66 lakh cr in 20 yrs: RBI data

A recent RTI disclosure reveals a systemic fragility in India’s banking sector, highlighting over eight lakh fraud cases totaling nearly six lakh crore rupees over two decades. Despite the massive scale of financial loss, recoveries remain negligible, exposing severe regulatory gaps and enforcement deficiencies. This data underscores a critical disconnect between the scale of fraudulent activities and the banking system’s ability to detect, prevent, and recover losses effectively. The analysis indicates that fraud trends are escalating across both public and private institutions, with significant spikes in small finance and payment banks. Even technologically advanced private banks report persistent exposures, suggesting that digital infrastructure alone cannot mitigate internal risk framework failures. The absence of conviction data further emphasizes a lack of judicial accountability, creating an environment where fraudulent practices may continue with minimal deterrents. This report is vital to open data advocacy as it demonstrates the power of transparency mechanisms like the RTI Act in exposing hidden institutional failures. It highlights how accessible, granular data can drive public scrutiny and hold financial institutions accountable for operational negligence. By making these metrics public, citizens and watchdogs can demand stricter governance, reinforcing the principle that open data is essential for maintaining trust and integrity in public finance systems.

Source: thehitavada.com
Published on 2025-07-10

Bank frauds worth Rs 5.66 lakh cr in 20 yrs: RBI data

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