Financial frauds declined by 46.7 per cent during 2023-24: RBI annual report
May 30, 2024
New Delhi [India], May 30 : The Reserve Bank of India (RBI) in its annual report released on Thursday has noted a 46.7 per cent decline in the amount (value) of frauds reported in 2023-24 compared to the previous year.
The report analyzing fraud cases by bank groups over the last three years reveals that private-sector banks have reported the highest number of frauds, whereas public-sector banks have accounted for the highest value of frauds.
The report says that the majority of frauds in terms of the number have occurred in the digital payments category (card/internet), while in terms of value, they have primarily been reported in the loan portfolio.
The report further adds that while private-sector banks have seen numerous small-value card/internet frauds, public-sector banks have mainly faced fraud in their loan portfolios.
It highlighted that the amount involved in frauds that occurred in previous financial years formed 94.0 per cent of the frauds reported in 2022-23 in terms of value.
RBI in the report also mentions that the agenda for 2024-25 and says it focuses on regulation, supervision, and financial stability.
The key initiatives of RBI in the year include establishing a cyber range to enhance the cyber incident response capabilities of Scheduled Commercial Banks (SCBs) and leveraging artificial intelligence (AI) and machine learning to prevent fraud.
Additionally, the RBI also aims to implement a risk-based supervision approach for Urban Cooperative Banks.
In the 284-page report, RBI said the government's continued thrust on capital expenditure while pursuing fiscal consolidation, and consumer and business optimism augur well for investment and consumption demand.
The report says that Indian economy is exhibiting strength and stability with robust macroeconomic fundamentals and financial stability. The country has emerged as the fastest-growing major economy in the world and a leading contributor to global growth.
For 2024-25, the government is set to spend on capital expenditure at Rs 11 trillion, or about 3.4 per cent of GDP. This is almost 4.5x from a decade before.
The prospects for agriculture and rural activity appear favourable due to the ebbing El Nino and the expected above normal southwest monsoon. El Nino is a climate pattern that describes the unusual warming of surface waters in the eastern Pacific Ocean.
The extension of Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) scheme for a period of five more years with effect from January 1, 2024 will strengthen national food security, the central bank's report noted.
