Cases of bank fraud involving staff have witnessed a significant decline in recent years, the government informed the Rajya Sabha on Tuesday.
In a written reply, Minister of State for Finance Pankaj Chaudhary said that as per data provided by the Reserve Bank of India, the number of fraud cases involving bank staff has reduced from 2,624 in FY 2020–21 to 1,935 in FY 2024–25, and further dropped to 400 cases in FY 2025–26 (till September 2025).
The minister said the decline follows a series of regulatory measures aimed at strengthening operational risk management and preventing internal frauds in banks.
According to RBI guidelines, banks have been directed to implement safeguards such as mandatory leave for staff, periodic staff rotation, and stronger operational risk management and resilience frameworks.
Banks and other regulated entities have also been asked to develop and strengthen Early Warning Signal (EWS) systems to detect suspicious transactions at an early stage. These systems use specific indicators and parameters to monitor transactions and flag potential irregularities.
The RBI has further advised institutions to regularly upgrade and periodically test the effectiveness of their EWS systems to ensure robust monitoring and prevention of fraudulent activities within the banking system.
