Mumbai: Mumbai: The amount involved in bank frauds reported by the banking sector jumped 46 percent to Rs 48,021 crore in FY26 from Rs 32,803 crore in the previous year, according to the Reserve Bank of India’s Annual Report 2025-26.
However, the number of fraud cases fell sharply to 10,114 from 23,722 a year earlier, indicating that while fewer frauds were reported, the value involved in such cases was significantly higher.
Public Sector Banks Account For Majority
Public sector banks accounted for the largest share of frauds by value, reporting Rs 35,709 crore worth of frauds in FY26 compared with Rs 23,617 crore in the previous year.
Private sector banks reported frauds amounting to Rs 11,399 crore, up from Rs 8,927 crore in FY25.
The RBI noted that the FY26 figures include 314 cases worth Rs 30,199 crore that related to previous years but were classified and reported during the year following re-examination and compliance with a Supreme Court ruling.
Loan Frauds Remain Biggest Concern
Frauds related to bank advances continued to dominate the list.
The amount involved in advances-related frauds rose to Rs 40,774 crore across 8,640 cases, compared with Rs 30,367 crore in 7,924 cases in FY25.
The RBI clarified that frauds reported during a particular year may have actually occurred several years earlier and are often identified after detailed investigations.
Digital Payment Frauds Decline
In contrast, frauds involving cards and digital payment channels declined sharply.
The amount involved in such frauds fell to Rs 29 crore across 293 cases in FY26, compared with Rs 517 crore in FY25 and Rs 1,452 crore in FY24.
The central bank said fraud values over the last three years have remained concentrated in the advances category despite a reduction in the overall number of cases.
RBI Explores Kill Switch
To strengthen customer protection, the RBI is considering a universal “switch on' and “switch off' facility for digital payment modes.
It is also examining the introduction of a 'kill switch' that would allow customers to instantly block all debit transactions from their accounts in case of fraud or security concerns.
The RBI is also exploring additional safeguards against authorised push payment frauds and highlighted its new “.bank.in' domain initiative aimed at enhancing cybersecurity and reducing digital payment frauds.
