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- Bank fraud worth Rs 1.42 lakh crore was revealed in Parliament.
- Only 4.5% (₹6,389 crore) was recovered in these frauds.
- This information is based on RBI data; Recovery is a continuous process.
- Public banks took legal recovery steps against defaulters.
Bank Fraud News: A very shocking revelation has been made in the Parliament regarding the banking sector of the country. According to the data presented by the Finance Ministry in Parliament on Tuesday, in the last five years, cases of fraud worth more than Rs 1.42 lakh crore (Rs 1,42,112 crore) have been reported in the country’s banks. Of these, only 4.5% (Rs 6389) has been recovered.
In a written reply to a question in the Rajya Sabha, Minister of State for Finance Pankaj Chaudhary said that these figures are based on the information received from the Reserve Bank of India (RBI). This data includes commercial banks, public sector banks (PSBs), private sector banks, foreign banks, small finance banks, payment banks, local area banks and all-India financial institutions.
What else did the government say on recovery?
Answering the questions asked about the total amount of bank fraud and the amount recovered, the Minister of State for Finance said that the recovery of money is done continuously from the accounts from which fraud has taken place.
According to RBI data, banks have recovered a total of Rs 6,389 crore from such fraudulent accounts in the last five financial years. Regarding the action taken against willful defaulters, the minister said that RBI does not have information about the action initiated against such borrowers. However, based on information received from public sector banks, important legal and recovery steps have been taken till March 31, 2026.
Banks took strong action
The government said that Public Sector Banks (PSBs) have filed 15,577 recovery cases against willful defaulters. Apart from this, action has been initiated under SARFAESI Act in 10,894 cases, while 7,173 FIRs have been registered against willful defaulters.
Why is the recovery so low?
It usually takes 2-5 years for banks to identify a major fraud and declare it a fraud. Taking advantage of this delay, the accused either transfer the funds to the network of shell companies or send them to foreign banks. Or anonymous properties or cryptocurrencies are purchased with the fraud money. On top of this, lengthy legal processes, lawsuits lasting for years and delay in freezing accounts or sale of properties are also the reasons due to which the pace of recovery remains slow and the full amount is not even recovered.
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