Agencies | New Delhi:
Jammu and Kashmir recorded 103 financial fraud cases involving Rs 193.49 crore during 2025–26, even as the number of reported incidents declined significantly over the past three years, according to data placed before the Lok Sabha on Monday.
The figures, furnished by the Reserve Bank of India (RBI) in response to Unstarred Question No. 2460, indicate that reported fraud cases in the Union Territory fell from 467 in 2023–24 to 298 in 2024–25, before dropping further to 103 in 2025–26. However, the value of the frauds rose sharply during the same period, increasing from Rs 47.55 crore in 2023–24 to Rs 81.27 crore in 2024–25 and reaching Rs 193.49 crore in 2025–26.
According to the data, banks recovered Rs 3.23 crore in 2023–24, Rs 2.65 crore in 2024–25 and Rs 6.92 crore in 2025–26.
In neighbouring Ladakh, the RBI recorded 18 fraud cases involving Rs 0.07 crore in 2023–24, 13 cases involving Rs 0.03 crore in 2024–25 and eight cases in 2025–26. The RBI table showed no amount involved or recovered for the frauds reported in 2025–26.
The Ministry of Finance clarified that the RBI’s data covers frauds reported by Scheduled Commercial Banks (excluding Regional Rural Banks) and All India Financial Institutions. It also stated that the RBI does not maintain records of the amounts frozen or refunded to victims of financial fraud.
The government informed Parliament that banks are required, under the RBI’s Master Directions on Fraud Risk Management, to promptly report fraud cases to the appropriate law enforcement agencies, including State and Union Territory police, the Serious Fraud Investigation Office (SFIO) and the Central Bureau of Investigation (CBI), depending on the nature and value of the fraud.
It further noted that there is no fixed timeline for the recovery of defrauded funds, as investigations often involve multiple agencies, financial institutions, tribunals and courts, with each case varying in complexity.
To tackle cyber-enabled financial fraud, the government said complaints registered through the National Cybercrime Reporting Portal or the 1930 cyber fraud helpline are integrated into the Citizen Financial Cyber Fraud Reporting and Management System (CFCFRMS). The platform connects State and Union Territory police with banks and financial intermediaries, enabling swift tracing of money trails and the immediate freezing of suspected fraudulent transactions.
Funds frozen through the CFCFRMS are subsequently restored to victims through the Money Restoration Module (MRM), the government said.
The RBI has also strengthened fraud detection by establishing a Central Fraud Registry for the timely identification and mitigation of fraud risks and by introducing the AI-based MuleHunter tool to identify money mule accounts. In addition, the government highlighted the incorporation of the Indian Digital Payment Intelligence Corporation (IDPIC), which uses artificial intelligence, machine learning and big data analytics to detect, prevent and analyse fraud across the digital payments ecosystem in real time.
The Ministry of Finance added that banks pursue recovery through multiple legal mechanisms, including civil courts, Debt Recovery Tribunals (DRTs), proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, and cases before the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code (IBC).
