Banks have reported a massive 73 percent increase in incidents of fraud worth Rs 71,543 crore in FY19, a senior Reserve Bank official said on Thursday.
Till March 2019, the top five, 10 and 100 cases of frauds cumulatively reported constituted 24 percent, 34 percent and 70 percent of all frauds, respectively, a chief general manager with the RBI, Jayant Dash said.
In FY18, the banks had reported frauds worth Rs 41,167 crore, he added.
"Total value involved in these frauds reported by the RBI-regulated entities during FY19 amounted to Rs 71,543 crore as against Rs 41,167 crore during the previous year, which is a 73 percent jump year-on-year," Dash told a CII event in Mumbai.
He said the distribution of reported frauds by banks follow a high pareto principle also known as 80/20 principle, which means 80 percent of the consequences come from 20 percent of the causes.
The large value frauds worth Rs 50 crore and above, constituted about 1 percent of the fraudulent cases but amounted to three-fourths of the fraud losses, Dash said.
Banks, on an average, report fraud loss of Rs 35,000 crore every year.
"This does not take into account loss to investors and other financial and operational creditors, apart from the intangible losses to the system," he said.
(with news agency inputs)