73.8% rise in bank frauds; number of cases up 15%

RBI data also shows a sharp jump in fraud amount in the loan cases. The value of frauds related to advances jumped nearly three times from Rs 22,558 crore in 2017-18 to Rs 64,548 crore.

The average lag between the date of occurrence and its detection by banks was 22 months. The average lag for large frauds — Rs 1 billion and above —amounting to Rs 52,200 crore reported during 2018-19, was 55 months. Among bank groups, PSBs, which constitute largest market share in bank lending, have accounted for the bulk of frauds reported in 2018-19. It was followed by private and foreign banks, the RBI said.

In terms of area of operations, frauds related to advances constituted the preponderant share of the total amount involved in frauds in 2018-19, while the share of frauds in off-balance sheet items declined from a year ago. “In terms of the number of frauds too, those related to advances were predominant followed by card/internet related frauds and deposits related frauds. Frauds relating to card/internet and deposits constituted only 0.3 per cent of the total value of frauds in 2018-19,” it said.

Cheating and forgery was the major component, followed by misappropriation and criminal breach of trust.

Rise in Rs 500, Rs 2000 fake notes

Mumbai: The Reserve Bank of India has reported a rise in counterfeit notes in the new denomination of 500 and 2000 notes during the year 2018-19. Counterfeit notes in the denomination of Rs 500 (new design notes) increased by 121.0 per cent, while in Rs 2,000, it increased by 21.9 per cent during 2018-19, the central bank said.

The RBI has said 21,865 counterfeit notes of Rs 500 valued at Rs 1.09 crore were detected during the year as against 9,892 notes (Rs 49.46 lakh) in the previous year. As many as 21,847 counterfeit notes of Rs 2,000 valued at Rs 4.36 crore were detected in 2018-19 as against 17,929 notes (Rs 3.58 crore) in the previous year. —ENS