Frauds fall nearly 50% at banks: RBI Data
Dec 27, 2022
Synopsis
“Based on the date of occurrence of frauds, advances-related frauds formed the biggest category prior to 2019-2020,” the RBI said. “In terms of number of frauds, the modus operandi shifted to card or internet based transactions. Additionally, cash frauds are also on the rise.”
Instances of financial frauds is falling in the banking system as institutions have become more aware of the cyber threats, said the RBI report. According to data shared by the regulator, the quantum of frauds fell 46% to Rs 19,485 crore between April to September 2022. Frauds reported were at Rs 36,316 crore during the same period a year ago.
“Based on the date of occurrence of frauds, advances-related frauds formed the biggest category prior to 2019-2020,” the RBI said. “In terms of number of frauds, the modus operandi shifted to card or internet based transactions. Additionally, cash frauds are also on the rise.”
Also, the RBI said that the number of fraud cases reported by private sector banks outnumbered those by public sector banks for the second consecutive year in 2021-2022. Data showed that in terms of the amount involved, however, the share of public sector banks was 66.7 per cent in 2021-22, as compared with 59.4 per cent in the previous year.
RBI also pointed out that the executive-worker compensation remained elevated in private sector banks at 78 times the average, compared to about just 3 times in state-run banks.
“At end-March 2021, for private banks on an average, CEOs earned 73 times the average employee remuneration, while in small finance banks, CEOs earned 76 times the average employee,” the central banks said. “This was much higher than any of the state-run banks, where on an average, CEOs earned 2.2 times the average employee remuneration.”
The report also highlighted that after declining for two consecutive years, new bank branches opened by banks increased by 4.6 per cent during 2021-22. The growth was led by new branches opened in Tier 4, Tier 5 and Tier 6 centres.
[The Economic Times]
