Journal Press India^®

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Fraud costs an arm and a leg to a bank. The bank has to face reputational, monetary loss as well as loss of customer faith. Increasing number of bank frauds arouses the interest of research to examine the current picture of the banking frauds prevailing in the states of Indian Economy. The study is extended over a period of 10 years i.e. from 2007-2016.The analysis has been done to show the trend of frauds in the 21^st century. RTI is used as the primary sources of data collection and Lok Sabha starred and unstarred questions are used as secondary sources of data. The methodologies adopted for analysing the trend consists of descriptive statistics and the graphical presentation. The finding of the study shows an increasing trend in the number and amount of banking frauds in the states of India. If we go by the number and amount, Maharashtra is the most affected state of the economy but if we talk about average amount involved in fraud, Chandigarh and West Bengal fall among the most affected states of India. The study signifies the importance of strengthening the mechanism of preventing banking fraud. The government of India and RBI are recommended to frame the judicial policies for curbing the banking frauds as slow and weak judicial procedures/ prosecution provide a platform to fraudsters and delay in fraud detection provides an escape route.

Keywords

Fraud; Banking frauds; PSBs; Trend, KYC, EWS, RFA

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