SRINAGAR: Jammu and Kashmir recorded 103 financial fraud cases involving Rs 193.49 crore in 2025-26, with banks reporting recovery of Rs 6.92 crore, according to data placed before the Lok Sabha on Monday.
The figures, provided by the Reserve Bank of India (RBI) in response to Unstarred Question No. 2460, show that the number of reported fraud cases in JK declined from 467 in 2023-24 to 298 in 2024-25, before falling further to 103 in 2025-26. However, the amount involved rose sharply from Rs 47.55 crore in 2023-24 to Rs 81.27 crore in 2024-25 and Rs 193.49 crore in 2025-26.
The amount recovered in the Union Territory stood at 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 data showed 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, with the amount involved and recovered shown as zero in the RBI table.
Nationally, the data covers frauds reported by Scheduled Commercial Banks, excluding Regional Rural Banks, and All India Financial Institutions. The government said the RBI does not maintain details of the amounts frozen and refunded to victims.
The Ministry of Finance said banks are required under the RBI’s Master Directions on Fraud Risk Management to immediately report fraud incidents to relevant law enforcement agencies, including State and UT police, the Serious Fraud Investigation Office and the Central Bureau of Investigation, depending on the amount involved.
The government said there are no defined timelines for recovery because fraud cases vary in complexity and may involve multiple agencies, institutions, tribunals and courts.
For cyber-enabled financial fraud, complaints made through the National Cybercrime Reporting Portal or helpline 1930 are fed into the Citizen Financial Cyber Fraud Reporting and Management System (CFCFRMS). The system links State and UT police agencies with banks and financial intermediaries to help trace money trails and place immediate lien holdings on defrauded funds.
Funds frozen through the CFCFRMS are subsequently returned to victims through the Money Restoration Module (MRM), the government said.
The RBI has also established a Central Fraud Registry for timely identification and mitigation of fraud risks and launched the AI-based MuleHunter tool to identify money mule accounts. The government further said the Indian Digital Payment Intelligence Corporation (IDPIC) has been incorporated to detect, prevent and analyse fraud in the digital payments ecosystem in real time using technologies including artificial intelligence, machine learning and Big Data Analytics.
The government said banks also undertake recovery action through mechanisms including civil courts, Debt Recovery Tribunals, proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, and cases before the National Company Law Tribunal under the Insolvency and Bankruptcy Code.
