A very worrying and shocking figure has come to light in Parliament regarding fraud and sinking money in the country’s banking system. Giving information in the Rajya Sabha on Tuesday, the Central Government said that during the last five financial years, bank frauds worth about ₹ 1.42 lakh crore have been registered in commercial banks and financial institutions. The most surprising thing is that out of this huge amount, banks have so far been able to recover only ₹ 6,389 crore, which is only 4.5% of the total fraud amount.
Government released figures in Parliament
According to Reserve Bank of India (RBI) data, a total fraud of ₹1,42,112 crore was reported in commercial banks and All India Financial Institutions in the last five years, the Finance Ministry said in a written reply in the Rajya Sabha. This includes government banks, private banks, foreign banks, small finance banks, payment banks and other financial institutions. The government also clarified that recovery of funds from fraudulent accounts continues, but so far only a total of ₹6,389 crore has been recovered.
Strict action against those who deliberately do not repay loans
The government said that public sector banks have taken legal action on a large scale against willful defaulters who deliberately do not repay loans. As of March 31, 2026, 15,577 recovery cases were filed in courts. At the same time, action was initiated under SARFAESI Act in 10,894 cases. While 7,173 FIRs were lodged. Through these legal and administrative steps, public sector banks have been successful in recovering ₹52,360 crore.
Why is the recovery so low?
In big bank fraud cases, the accused often transfer properties to other names or flee abroad. The pace of recovery remains very slow due to lengthy legal processes, litigation lasting years in courts and delays in the sale of assets. This is the reason why even in scams worth thousands of crores of rupees, the entire amount is not recovered.
Big lesson for banking system
The government says that surveillance is being continuously increased to make the banking system more secure. RBI and other regulatory bodies are implementing new rules to prevent fraud, so that such cases can be reduced in future. However, these figures presented in the Parliament clearly show that bank fraud not only causes economic loss but also has a big impact on the banking system and customer confidence.
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Input- ANI
SK Sharma is a content writer who writes on news, entertainment, and lifestyle topics. She has over four years of experience and is known for conveying information in simple and clear language.
