As companies become more aware of cyber threats, the incidence of financial fraud in the banking system is decreasing. RBI Report. According to data shared by the regulator, the volume of frauds has declined by 46% to Rs 19,485 crore from April to September 2022. During the same period a year ago, frauds were reported at Rs 36,316 crore.
“In terms of date of occurrence of frauds, frauds related to advances formed the largest category before 2019-2020,” RBI said. “Given the number of frauds, the modus operandi has shifted to card or web-based transactions. Additionally, money frauds are also on the rise.
Also, RBI reported that the number of fraud cases in private sector banks is higher than that of private sector banks Public sector banks For the second consecutive year in 2021-2022. However, in terms of amount involved, the share of public sector banks was 66.7 per cent in 2021-22, as against 59.4 per cent in the previous year.
The Reserve Bank also pointed out that executive-employee compensation in private sector banks is 78 times higher than the average, compared to just 3 times in state-run banks.
“At the end of March 2021, on average for private banks, CEOs earned 73 times the average employee pay. Finance Bank CEOs earn 76 times more than the average worker,” the central bank said. “This was higher than any other state-run bank, where, on average, CEOs earned 2.2 times the average employee pay.”
The report also highlighted the new, after two years of consecutive declines Bank Branches opened by banks increased by 4.6 per cent in 2021-22. Growth was led by new branches opened in Tier 4, Tier 5 and Tier 6 centres.