Archive · 21 Jul 2026
Rs 1.42 Lakh Crore Frauds Reported in Banks
The Indian government reported that banks and financial institutions faced frauds worth Rs 1.42 lakh crore over the last five years.
They recovered Rs 6,389 crore from these frauds.
The government also took action against wilful defaulters, filing suits against 15,577 people and initiating legal actions in 10,894 cases.
Additionally, borrowers complained about banks' recovery practices, leading the RBI to issue guidelines to protect borrowers from harassment.
In FY26, there were 18,021 complaints against banks, which was more than double the previous year.
Banks reported Rs 1.42 lakh crore in frauds over five years.
Rs 6,389 crore recovered from fraud cases.
7,173 FIRs filed in these fraud cases.
Suits filed against 15,577 wilful defaulters.
SARFAESI Act actions initiated in 10,894 cases.
- Who
- Government of India, Reserve Bank of India (RBI), Public Sector Banks, Borrowers
- What
- Reporting of Rs 1.42 lakh crore in bank frauds and recovery actions
- When
- Last five financial years, with specific data as of March 31, 2026
- Where
- India
- Why
- To report frauds, recover amounts, and address borrower complaints
Government and Regulatory Actions
Borrower Complaints and Protections
Fraud Reporting and Recovery
Government and Regulatory Actions
The government reported Rs 1.42 lakh crore in bank frauds over five years with Rs 6,389 crore recovered.
Borrower Complaints and Protections
Borrowers filed 18,021 complaints against banks in FY26, more than double the previous year.
Actions Against Wilful Defaulters
Government and Regulatory Actions
Suits were filed against 15,577 wilful defaulters, and SARFAESI Act actions were initiated in 10,894 cases.
Borrower Complaints and Protections
RBI directed banks to avoid undue harassment and implement due diligence for recovery agents.
- Total Fraud Amount
- Rs 1,42,112 crore
- Recovery Amount
- Rs 6,389 crore
- FIRs Filed
- 7,173
- Wilful Defaulters Suits
- 15,577
- SARFAESI Act Actions
- 10,894
- Recovery from Wilful Defaulters
- Rs 52,360 crore
- Complaints Against Banks (FY26)
- 18,021