Bank fraud cases involving amounts above ₹1 crore surged to 1,330 in FY 2025-26, according to data from the Reserve Bank of India (RBI) cited by the Ministry of Finance in a written reply to the Rajya Sabha on Tuesday, August 11, 2026. This represents a significant increase from 941 cases in FY 2024-25, marking a sharp reversal after three consecutive years of decline. The data was provided by Minister of State for Finance Pankaj Chaudhary in response to Rajya Sabha Unstarred Question No. 2621, raised by Vivek K. Tankha. As per the latest Finance Ministry data, this 41% jump in large-value fraud cases demonstrates the escalating nature of banking fraud in the current financial year.
The total amount involved in these fraud cases reached ₹46,559.84 crore in FY 26, compared to ₹30,121.98 crore in FY 25, as reported by the Ministry of Finance. Banks recovered ₹2,788.38 crore during FY 26, significantly higher than the ₹1,287.86 crore recovered in FY 25. The recovery rate in FY 26 was 6.0% of the total amount involved, compared to 4.3% in the previous year. Across the six-year period from FY21 to FY26, reported frauds involved a total of ₹2,31,710.12 crore, while recoveries amounted to ₹6,283.14 crore, leaving a gap of about ₹2.25 lakh crore between the amount involved in reported frauds and the amount recovered. The Ministry clarified that the recovery figures represent amounts recovered during the respective periods and should not necessarily be treated as the final losses in the fraud cases.
The data reveals a clear pattern of decline followed by recovery in high-value bank fraud cases. Cases had fallen consistently from 1,066 in FY 21 to 641 in FY 24, before increasing to 941 in FY 25 and 1,330 in FY 26. The amount involved similarly declined from ₹97,508.55 crore in FY 21 to ₹9,080.50 crore in FY 24, before rising to ₹30,121.98 crore in FY 25 and ₹46,559.84 crore in FY 26. The total number of fraud cases across all categories reached 5,607 cases involving ₹2,31,710.12 crore over the six-year period. The figures represent amounts recovered during the periods covered by the data and shouldn't necessarily be interpreted as the final losses from the fraud cases. The sharp rise in FY26 highlights continuing challenges for banks and financial institutions in strengthening monitoring systems, risk management and early detection mechanisms.
Minister of State for Finance Pankaj Chaudhary stated that the details of fraud cases above ₹1 crore reported by Scheduled Commercial Banks, excluding Regional Rural Banks, and All India Financial Institutions (AIFIs) were provided in the annexure. The information was presented in the Rajya Sabha on Tuesday, August 11, 2026, in response to the question on 'Bank Fraud Cases Above ₹1 Crore' raised by Vivek K. Tankha, who sought details on the number of such cases reported nationally during the last five years, the total amount involved, and the amount recovered so far. The data, covering scheduled commercial banks and All India Financial Institutions, showed that the number of large-value fraud cases rose sharply in the latest financial year, with the 41% jump in FY26 representing a significant escalation in banking fraud incidents. The Finance Ministry also shared separate data on foreign portfolio investor activity, according to information obtained from the National Securities Depository Limited (NSDL), showing gross sales by foreign portfolio investors stood at ₹29.8 lakh crore between January 1 and August 5, 2026.
