Summary of this article
Fraud cases fell, but amount involved rose sharply.
Advances category accounted for largest share of frauds.
RBI to strengthen cyber risk monitoring and supervision.
Banks and financial institutions have reported around 10,114 fraud cases involving Rs 48,021 crore in 2025-26, compared to 23,722 cases involving Rs 32,803 crore in the previous financial year, according to the Reserve Bank of India's (RBI) Annual Report for 2025-26. The report has indicated that the trend over the past three years points to fewer fraud incidents being reported by public and private sector banks, even as the monetary impact of such cases has increased.
Loan-Related Frauds Drive Rise In Amount
The advances category emerged as the biggest source of frauds in 2025-26. Banks have reported more than 8,500 cases involving a staggering Rs 40,774 crore under this category, accounting for a substantial portion of the total amount involved during the year.
On the other hand, around 7,924 cases, related to advance frauds involving Rs 30,367 crore were lodged in 2024-25, and 4,105 cases involving Rs 8,917 crore the year before.
The data shows that while digital payment-related frauds previously dominated in terms of volume, frauds linked to loans and advances became the largest contributor in both number and value during the latest financial year.
Public Sector Banks Report Highest Exposure
Public sector banks accounted for the largest share of the amount involved in frauds. These banks have reported more than 5,000 cases in 2025-26.
Even though the number of cases dipped slightly from the previous year (6,916 cases in 2024-25), the amount involved rose to Rs 35,709 crore from Rs 23,617 crore in 2024-25. Private sector banks also saw a similar trend. Fraud cases fell sharply to 3,956 from 14,024 in the previous year, but the amount involved increased to Rs 11,399 crore from Rs 8,927 crore.
Foreign banks reported 210 fraud cases involving Rs 290 crore, while small finance banks (SFBs) reported 467 cases involving Rs 114 crore. Payments banks reported 47 fraud cases amounting to Rs 11 crore.
Digital Payment Frauds Continue To Decline
Frauds involving cards, Netbanking and digital payment channels declined sharply during the year. Only 293 such cases involving Rs 29 crore were reported in 2025-26, compared to 13,332 cases involving Rs 517 crore in the previous year. In 2023-24, banks had reported 28,836 such cases involving Rs 1,452 crore.
RBI has clarified that the fraud figures for FY26 are based on cases reported during the year and not necessarily on when the fraud actually occurred. Some fraud cases included in the FY26 data may have actually occurred in earlier years.
The FY26 data includes 314 such cases, involving Rs 30,199 crore. These cases were reported during FY25-26, after banks re-examined them following the Supreme Court's March 2023 ruling which ruled that borrowers must be given an opportunity to be heard before an account is classified as fraud.
