Trends and Patterns of Banking Frauds in Private and Government Banks A Comparative Analysis (2020-2025)

In India over the five-year period from 2020 to 2025. Drawing on data from Reserve bank of India (RBI)reports and related literature, the research investigates the incidence, nature, and financial impact of fraud across the two sectors. Findings reveal that private banks report a higher volume of fraud cases, primarily linked to digital payments such as card and internet fraud, which constitute most fraud incidents in terms of frequency. Government banks, however, experience significantly larger fraud amounts, predominantly associated with loan portfolio frauds and advances. The analysis highlights a growing disparity where cases in government banks, though fewer in number, contribute a majority share to the total fraud value. The evolution of fraud typologies indicates an increase in technologically sophisticated schemes in private banks, whereas systemic vulnerabilities in credit appraisal and monitoring largely drive fraud in government banks. The study also evaluates the effectiveness of fraud prevention and detection measures implemented by both sectors, noting a declining trend in fraud cases since 2020 attributed to regulatory reforms, enhanced internal controls, and technology adoption. However, challenges persist, including under-reporting, evolving fraud techniques, and the need for sector-specific frameworks. Policy recommendations emphasize strengthening digital security infrastructure in private banks and improving loan monitoring mechanisms in public banks to curb financial losses. This research contributes empirical insights into the dynamic fraud landscape, supporting bankers, regulators, and policymakers in fortifying fraud resilience and protecting the integrity of the Indian banking system.