The share of PSBs in total frauds, both in terms of number and value, decreased while that of private sector banks increased during the period. The share of private sector banks to total value of frauds rose to 33% in FY21 from 18.4% a year ago. Data from RBI also showed that a majority of these frauds are in loan portfolios of banks, both in terms of number and value. “Frauds have been occurring predominantly in the loan portfolio, both in terms of number and value," RBI said in its annual report. The average lag between the date of occurrence of frauds and their detection by banks and other financial institutions was 23 months during 2020-21.

Source: Mint May 27, 2021 12:56 UTC