India's Banking Crisis: ₹1.1 Lakh Crore Stolen, Only 5% Recovered - Is Your Money Safe?
A dismal recovery rate, below 5%, exposes systemic flaws and lax oversight.
India’s banking sector is reeling from a colossal scandal, with 693,124 fraud cases reported between FY 2021–22 and December 2024, totaling ₹1,10,923.75 crore in losses. Shockingly, only ₹5,048.28 crore—less than 5%—has been recovered, leaving ₹1,05,875.47 crore untraced. This crisis, driven by cybercriminals, shell companies, fraudulent borrowers, and insider collusion, reveals a deep-rooted systemic failure in accountability and enforcement.
Major banks like State Bank of India (SBI) reported 34,491 cases involving ₹19,774.23 crore, recovering just ₹114.30 crore. Punjab National Bank (PNB) faced 10,676 cases worth ₹13,279.94 crore, with only ₹1,130.75 crore recovered. ICICI Bank led with 42,372 cases amounting to ₹9,312.81 crore but recovered a mere ₹6.52 crore.
Axis Bank reported 65,932 cases involving ₹2,434.14 crore, recovering only ₹97.75 crore. HDFC Bank, with 52,190 cases, lost ₹1,460.90 crore, recovering ₹186.26 crore. Smaller institutions like Export Import Bank of India and SIDBI reported zero recovery on frauds worth ₹623.51 crore and ₹49.41 crore, respectively.
Also Read: Maharashtra’s Shocking New Law: 7-Year Jail, ₹5 Lakh Fine for Left-Wing Extremists!
Sanjay Thul, a retired official and transparency advocate, obtained this data via RTI, highlighting the Reserve Bank of India’s (RBI) failure to track convictions, calling it a “serious concern” for accountability. The RBI’s admission that fraud reporting often lags due to delayed detection underscores systemic inefficiencies, hindering timely legal action and recovery.
The surge in fraud, especially in digital payments and loan portfolios, has hit public sector banks hardest, with private banks like Axis and ICICI reporting high case volumes. Small finance banks like Airtel Payments Bank saw cases skyrocket from 10 in FY 2021–22 to 19,642 in FY 2024–25.
Thul demands a national fraud recovery commission and real-time coordination between RBI, banks, and investigative agencies to address this “silent hemorrhage” threatening India’s financial stability.
Also Read: NASA's Shocking Exodus: Thousands of Top Experts Flee, Threatening Moon and Mars Missions!
