{"id":4598,"date":"2020-10-07T03:04:49","date_gmt":"2020-10-07T03:04:49","guid":{"rendered":"https:\/\/signdesk.com\/in\/?p=4598"},"modified":"2025-09-17T07:07:40","modified_gmt":"2025-09-17T12:37:40","slug":"banking-fraud-in-india-and-how-banks-can-combat-it","status":"publish","type":"post","link":"https:\/\/melento.ai\/en-in\/blog\/banking-fraud-in-india-and-how-banks-can-combat-it","title":{"rendered":"Banking Fraud in India And How Banks Can Combat it"},"content":{"rendered":"

Rising Banking Fraud in India<\/strong><\/span><\/h2>\n

According to RBI\u2019s Annual Report for 2019-20, the number of reported fraud cases involving\u00a0 \u20b91 lakh and above have increased by 28% in volume and a whopping 159% in value in 2019-20.\u00a0<\/span><\/p>\n

Public sector banks experienced a 234% yearly increase in the number of reported frauds and private sector banks saw a rise of around 500%!\u00a0<\/span><\/p>\n

With rapid digitizations occurring in the financial sector, along with frequent cyber-attacks from within and outside the country, banks are now scrambling to put adequate measures in place to combat fraud and related theft.\u00a0<\/span><\/p>\n

Before examining the ideal counter-measures against banking fraud, let\u2019s first look at how the various types of fraud are classified, which types are most frequent, and the measures already in place to prevent banking fraud.<\/span><\/p>\n

\"KYC-verification\"<\/p>\n

Types of Banking Fraud<\/strong><\/span><\/h2>\n

RBI issued a Master Circular in 2016, classifying frauds on the basis of the Indian Penal Code (1986). These classifications are –\u00a0<\/span><\/p>\n