RBI has alerted banks about 8 times increase in bank fraud. Fraud reached Rs 21,367 crore in the first half of FY 2024-25. RBI has asked banks to increase cyber security, report fraud immediately and make customers aware.
RBI Alert: The report released by the Reserve Bank of India (RBI) has highlighted a worrying increase in bank fraud cases. In the first half of FY 2024-25 (April to September), there was an 8-fold increase in fraud incidents in banks, taking the total fraud figure to Rs 21,367 crore. This figure is much higher than the same period last year, in which fraud of Rs 2,623 crore was reported. This increase has raised serious security concerns in the Indian banking sector, and it can prove to be a major threat to customer confidence.
The Reserve Bank said that a large part of these fraud cases have occurred in private and public sector banks. According to the data, private sector banks had a higher number of fraud incidents, while public sector banks had a higher share of fraud amount. In particular, public sector banks have the highest share in card and internet frauds. This shows that with the increasing use of digital banking and online transactions, new methods of fraud have also emerged.
Do not delay in filing a complaint
The Reserve Bank has asked banks not to delay reporting fraud incidents and ensure that every fraud incident is recorded without any delay. For this, banks need to establish a strong reporting system, so that fraud incidents can be detected on time and tracked properly. Also, accountability of bank employees will also be ensured, so that there is no lapse in cases of fraud.
Banks need to enhance cyber security
It is time for banks to further strengthen their security systems. It is also important to make customers aware and increase their vigilance against fraud. Banks need to revisit their cyber security strategies to ensure that frauds on digital platforms can be avoided. Apart from this, customers should be made aware of the security of their personal and financial information. It would be in their interest to report any suspicious activity immediately.
Instructions to banks
The Reserve Bank has asked banks to analyze and study fraud cases and prepare strategies to prevent such incidents. This will not only strengthen the security of banks, but will also restore the trust of customers. Collective efforts are needed to stop this growing fraud crisis, so that security can be ensured in the Indian banking system and people’s trust can be maintained.
