Archive · 22 Jul 2026
Banks Report Rs 1.42 Lakh Crore Frauds
Banks in India have reported a huge amount of money lost to fraud over the last five years, totaling Rs 1.42 lakh crore.
They have also recovered some of this money, amounting to Rs 6,389 crore.
The government has taken action against people who did not pay back their loans, but there are concerns about how well these actions are being tracked.
Banks have filed legal cases and started processes to get their money back, but the central bank does not keep records of all the actions taken against these defaulters.
Banks reported frauds worth Rs 1.42 lakh crore over the last five financial years.
Recovery of Rs 6,389 crore was made in fraud accounts during the same period.
As of March 31, 2026, suits were filed against 15,577 wilful defaulters.
Action under the SARFAESI Act was initiated in 10,894 cases.
FIRs were filed in 7,173 cases, and Rs 52,360 crore was recovered from wilful defaulters.
- Who
- Banks and financial institutions in India
- What
- Reported frauds worth Rs 1.42 lakh crore and recovery of Rs 6,389 crore
- When
- Over the last five financial years
- Where
- India
- Why
- To inform Parliament about the extent of frauds and recovery efforts
Banks' Efforts
Regulatory Gaps
Recovery Actions
Banks' Efforts
Banks have taken significant actions including filing suits and initiating SARFAESI Act proceedings against wilful defaulters.
Regulatory Gaps
The RBI does not maintain information on actions taken against wilful defaulters, indicating potential regulatory gaps.
- Total Fraud Amount
- Rs 1,42,112 crore
- Recovery Amount
- Rs 6,389 crore
- Wilful Defaulters Suits
- 15,577
- SARFAESI Act Cases
- 10,894
- FIRs Filed
- 7,173
- Recovery from Wilful Defaulters
- Rs 52,360 crore