India’s banking system lost ₹36,014 crore to fraud in FY 2024-25, a 194 % jump over the prior year, even as the number of reported cases slipped to about 24,000.
The Reserve Bank of India’s annual report attributes the spike chiefly to the re-classification of 122 legacy, high-value loan scams (₹18,674 crore) after a Supreme Court directive.
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Public-sector banks absorbed the brunt—₹25,667 crore (71 %)—largely from large-ticket loan frauds.
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Private banks logged the most incidents—over 14,000—driven by card and internet-banking breaches.
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Digital-payment frauds formed 56 % of cases but only a sliver of total value; loan scams caused the heaviest rupee losses.
While banks and police blocked or retrieved roughly ₹5,500 crore before funds left the system, regulators warn that structural gaps remain. The RBI has urged tighter real-time monitoring, stronger cyber-risk frameworks, and faster internal probes to shore up public trust in the banking sector.
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The nature of claims is getting complex – Mainly cyber. The Bankers Indemnity Policy wordings are still meeting the traditional banking process. In view of this challenge, the policy is getting endorsed/ added with Cyber crime and Add-On clauses. This complicates the claim admn. It is recommended to review the policy wordings.