Banks and financial institutions have reported fraud of Rs 1.42 lakh crore in the last five financial years but recovery has been just Rs 6,389 crore during this period.

In a written reply to Rajya Sabha, Minister of State for Finance Pankaj Chaudhary said his ministry has been apprised by the Reserve Bank of India (RBI) that it is not maintaining information pertaining to the action taken against wilful defaulters.

However, as per data reported by public sector banks, as on 31 March 2026, suits for recovery were filed against 15,577 wilful defaulters and action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act was initiated in 10,894 cases.

Besides, FIRs were filed in 7,173 cases.

Public sector banks, as on March 31, 2026, have recovered an aggregate amount of Rs 52,360 crore from wilful defaulters.

Chaudhary said recovery in accounts classified as fraud is an ongoing process and as per RBI data, an aggregate recovery of Rs 6,389 crore was made in such accounts during the last five financial years.

"As per Reserve Bank of India (RBI) inputs, during the last five financial years, an aggregate amount involved in frauds, based on the date of reporting in Commercial Banks and All India Financial Institutions was Rs 1,42,112 crore," Chaudhary said on Tuesday.

Commercial Banks include public sector banks, private sector banks, foreign banks, small finance banks, payments banks and local area banks.

In reply to another question, Chaudhary said, in FY26, 18,021 complaints were received against banks regarding recovery agencies, which was more than double of 8,623 complaints in the previous year.

To strengthen safeguards and accountability to protect borrowers from coercive recovery practices, RBI has directed banks, vide a notification dated November 28, 2025, that they shall not resort to undue harassment, and have a due diligence process for engagement of recovery agents, the minister added.