Jammu Kashmir Bank Sees Decline in Fraud Cases
SRINAGAR: The Jammu and Kashmir Bank has reported a significant reduction in bank fraud cases, reflecting broader trends in the banking sector.
The RBI data shared by the Finance Minister in response to a Lok Sabha question reveals that the number of fraud cases involving the bank has decreased sharply.
The bank reported 13 cases of fraud in 2019-20 involving Rs 69.71 crore. There were 10 cases involving 99.23 crore in 2020-21, 12 cases in 2021-22 involving Rs 14.25 crore, 16 cases in 2022-23 involving Rs 298.75 crore. The numbers went down later. In 2023-24 there were only eight cases involving Rs 8.10 crore and two cases involving Rs 69 lakh in 2024-25, so far, the government said quoting the RBI data.
As part of a nationwide crackdown on bank fraud, the government has implemented a series of measures to tackle financial crimes. These include the establishment of a Central Fraud Registry by the Reserve Bank of India (RBI) for quicker identification and resolution of fraud risks. Furthermore, banks now rely on Early Warning Systems (EWS) and third-party data to monitor borrowing accounts and avoid slippage into non-performing assets (NPAs).
Legislative and procedural tools, such as the Fugitive Economic Offenders Act and the Insolvency and Bankruptcy Code, have been introduced to bolster accountability. The creation of a Cyber Fraud Mitigation Centre and a robust coordination framework between law enforcement agencies has also led to greater vigilance against online fraud.
These steps have resulted in a significant reduction in the amounts involved in banking fraud, with fraud amounts plummeting from Rs 33,757 crore in FY 2019-20 to Rs 837 crore in FY 2024-25, the government said.
