Lok Sabha Question No. 45 (UNSTARRED), answered on 2024-11-25
Subject: Cases of Financial Fraud
Ministry: FINANCE
Asked by: Prof. Sougata Ray

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION NO-45

ANSWERED ON MONDAY, NOVEMBER 25, 2024/AGRAHAYANA 4, 1946 (SAKA)

## CASES OF FINANCIAL FRAUD

## 45. PROF. SOUGATA RAY

Will the Minister of FINANCE be pleased to state:-

- (a) whether the Government has taken note of a large number of cases of financial frauds reported in the country;
- (b) if so, the details of such reported cases during the last three years, State-wise; and
- (c) whether the Government has any proposal to bring new rules  to curb financial  frauds  in  the country and if so, the details thereof?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE

## (SHRI PANKAJ CHAUDHARY)

(a) to (c):  As per Reserve bank of  India (RBI) data on frauds in respect of amount involved of Rs. 1 lakh and above in each case and based on the date of  occurrence, amounts involved in fraud cases in commercial banks and all India financial institutions have declined from Rs. 9,298 crore in FY 202122 to Rs. 3,607 crore in FY 2022-23 to Rs. 2,715 crore in FY 2023-24.

State-wise details of number of cases of frauds and amount involved in these frauds for the last three financial years are at Annex.

Comprehensive steps have been taken to keep a check on the banking frauds and deter fraudsters, which  resulted  in  decline  in  amount  involved  in  frauds  over  the  years.  Further,  based  on  a comprehensive  review  of  the  earlier  Master  Directions,  Circulars  and  emerging  issues,  RBI,  on 15.7.2024 has issued revised Master Directions on Fraud Risk Management in commercial banks and AIFIs. Salient features of the said Master Direction, include, inter alia the following:

- (i) Strengthening  of  the  role  of  the  Board  in  overall  governance  and  oversight  of  fraud  risk management.
- (ii) Emphasis on the need for instituting robust internal audit and controls framework.
- (iii) Framework on Early Warning Signals and Red Flagging of Accounts has been strengthened further for early detection and prevention of frauds and timely reporting to Law Enforcement Agencies and Supervisors.
- (iv) Establishment  of  dedicated  data  analytics  and  market  intelligence  unit  in  banks  have  been mandated for facilitating collection and processing of relevant information to enable an early detection and prevention of potentially fraudulent activities.

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Annex

## Lok Sabha Unstarred question no. 45, regarding Cases of Financial Fraud

## Details of frauds in Commercial Banks and AIFIs, in respect of amount involved of Rs. 1 lakh and above in each case, based on the date of occurrence

Amount in crore Rs.

| FY                                       | 2021-22   | 2021-22         | 2022-23   | 2022-23         | 2023-24   | 2023-24         |
|------------------------------------------|-----------|-----------------|-----------|-----------------|-----------|-----------------|
| State/UT                                 | Number    | Amount Involved | Number    | Amount Involved | Number    | Amount Involved |
| Andaman and Nicobar Islands              | --        | --              | 2         | 0.02            | 6         | 0.17            |
| Andhra Pradesh                           | 186       | 183.96          | 336       | 458.61          | 588       | 140.87          |
| Arunachal Pradesh                        | 3         | 1.57            | 1         | 0.05            | 13        | 0.47            |
| Assam                                    | 68        | 11.11           | 113       | 14.99           | 291       | 15.44           |
| Bihar                                    | 247       | 51.95           | 269       | 28.59           | 591       | 25.85           |
| Chandigarh                               | 83        | 34.98           | 72        | 70.88           | 94        | 4.48            |
| Chhattisgarh                             | 85        | 34.67           | 157       | 76.30           | 204       | 12.12           |
| Dadra and Nagar Haveli and Daman and Diu | 5         | 0.11            | 8         | 0.54            | 17        | 0.48            |
| Goa                                      | 40        | 3.37            | 34        | 6.98            | 61        | 2.83            |
| Gujarat                                  | 401       | 160.52          | 624       | 188.26          | 1,575     | 107.51          |
| Haryana                                  | 554       | 92.91           | 813       | 138.60          | 1,239     | 83.64           |
| Himachal Pradesh                         | 33        | 4.77            | 52        | 6.15            | 117       | 4.19            |
| Jammu and                                | 45        | 19.04           | 49        | 28.51           | 84        | 8.77            |
| Jharkhand                                | 116       | 35.57           | 125       | 10.77           | 240       | 12.84           |
| Karnataka                                | 435       | 119.60          | 987       | 246.07          | 1,499     | 243.43          |
| Kerala                                   | 166       | 103.40          | 373       | 54.42           | 1,256     | 200.61          |
| Ladakh                                   | 3         | 0.57            | --        | --              | 2         | 0.02            |
| Lakshadweep                              | --        | --              | --        | --              | 1         | 0.15            |
| Madhya Pradesh                           | 291       | 50.14           | 467       | 41.36           | 709       | 53.20           |
| Maharashtra                              | 2,233     | 1,257.66        | 3,882     | 441.45          | 7,586     | 391.78          |
| Manipur                                  | 2         | 4.13            | 5         | 0.97            | 12        | 2.26            |
| Meghalaya                                | 6         | 0.12            | 5         | 1.11            | 11        | 0.78            |
| Mizoram                                  | 1         | 0.85            | --        | --              | 2         | 0.93            |
| Nagaland                                 | 7         | 8.88            | 6         | 4.19            | 8         | 0.19            |
| NCT of Delhi                             | 715       | 2,630.77        | 1,743     | 762.26          | 2,370     | 141.63          |
| Odisha                                   | 238       | 75.59           | 568       | 36.74           | 449       | 28.64           |
| Puducherry                               | 5         | 0.33            | 11        | 1.33            | 21        | 0.91            |
| Punjab                                   | 329       | 214.03          | 353       | 58.08           | 646       | 149.34          |
| Rajasthan                                | 324       | 114.06          | 456       | 51.74           | 1,423     | 88.73           |
| Sikkim                                   | --        | --              | 10        | 0.64            | 18        | 0.55            |
| Tamil Nadu                               | 577       | 252.36          | 3,192     | 418.27          | 6,468     | 663.63          |
| Telangana                                | 257       | 265.14          | 513       | 111.48          | 1,009     | 98.76           |
| Tripura                                  | 11        | 0.76            | 29        | 2.79            | 34        | 1.73            |
| Uttar Pradesh                            | 708       | 169.31          | 977       | 177.62          | 1,723     | 100.00          |
| Uttarakhand                              | 41        | 5.13            | 65        | 7.61            | 175       | 10.93           |
| West Bengal                              | 537       | 3,391.04        | 920       | 159.85          | 1,821     | 116.78          |

Source: RBI

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