Journal Press India®

State-wise Assessment of Banking Frauds in India: A Study of Trends in 21st Century

Vol 4 , Issue 2 , July - December 2017 | Pages: 127-144 | Research Paper  

 
Article has been added to the cart.View Cart (0)
https://doi.org/10.17492/mudra.v4i02.11450


Author Details ( * ) denotes Corresponding author

1. * Anju Rohilla, Research Scholar, Bhagat Phool Singh Mahila Vishwavidyalan, Sonipat, Haryana, India (anju.rohilla.snp@gmail.com)

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 21st 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

  1. Ahmed, I. Madawaki, M. D. & Usman, F.(2014). Managing bank fraud and forgeries through effective control strategies: A case study of central bank of Nigeria, Gombe Branch. International Journal of Business and Management Invention, 3(4), 07-17.
  2. Akelola, S. (2012). Frauds in the Banking industry: A case study from Kenya, (Doctoral dissertation).
  3. Association of Certified Fraud Examiners. (2014). Report to the Nation on Occupational Fraud. Retrieved from https://www.acfe.com/rttn/docs/2014-report-to-nations.pdf .
  4. Barnes, R.W. (1995). The Value of Quality Education to Banks And Bankers. The Journal of Indian Institute of Bankers. 66(3), 55-59.
  5. Bhasin, M. (2015). An empirical study of frauds in the banks. European Journal of Business and Social Sciences, 4(7), 1-12.
  6. Bhasin, M. (2016). Fraud in banking sector: Experience of developing country. Asian Journal of Social Sciences and Management Studies, 3(1), 1-9.
  7. Chakraborty, S. (2013, September 13). Indian banking set to become fifth largest by 2020: KPMG-CII Report, Business Standard News. Retrieved from http://www.business-standard.com/article/finance/indian-banking-set-to-become-fifth-largest-by-2020-kpmg-cii-report-113091300822_1.html.
  8. Chiezey, U., & Onu, A. J. C. (2013). Impact of fraud and fraudulent practices on the performance of banks in Nigeria. British Journal of Arts and Social Sciences, 15(1), 12-25.
  9. Cressey, D. R. (1953). Other People’s Money. Montclair, NJ: Patterson Smith, pp.1-300.
  10. Deloitte Fraud Survey (2015, April 23), The Deloitte India Banking Fraud Survey Report Edition II, Press Trust of India report, Retrieved fromhttps://www2.deloitte.com/ content/dam/Deloitte/in/Documents/finance/in-fa-banking-fraud-survey-noexp.pdf.
  11. Fagbemi, O.A. (1989). Fraud in banks: The law and the legal process. Lagos, FITC
  12. Ganesh, A. 7 Raghurama, A. (2008). Status of training evaluation in commercial bank- a case Study. Journal of Social Sciences and Management Sciences, 37(2), 137-158.
  13. Ghosh, S. & Mohul (2015, March 23). Rs. 11,022 crore of fraud discovered in public sector banks between April-December 2014, Retrieved from http://trak.in/tags/business/ 2015/03/23/psu-bank-frauds-india/.
  14. Ghosh, S., & Bagheri, M. (2006). The Ketan Parekh fraud and supervisory lapses of the Reserve Bank of India. Journal of Finance Crime, 13(1), 107-124.
  15. Hartmann-Wendels, T., Ma’hlmann, T. & Versen, T. (2009). Determinants of bank’s risk exposure to new account fraud- Evidence from Germany. Journal of Banking and Finance, 33(2), 37-42.
  16. Idolor, E. J. (2010). Bank frauds in Nigeria: Underlying cause, effects and possible remedies. African Journal of Accounting, Economics, Finance and Banking Research 6(6), 62-80.
  17. Kant, R. (2016).Frauds and money laundering in banking: Challenges in prevention and control, The Indian Banker, 4(4), 36-40.
  18. Kaveri, V.S. (2014). Bank frauds in India: Emerging challenges. Journal of Commerce and Management Thought, 5(1), 14-26.
  19. Khanna, A. & Arora, B. (2009). A study to investigate the reasons for bank frauds and the implementation of preventive security controls in Indian banking industry, International Journal of Business Science and Applied Management, 4(3),1-21.
  20. KPMG. (2008). Report India fraud Survey 2008. Retrieved from http://www.in.kpmg. com/ pdf/ FraudSurveyReport_08.pdf
  21. Kumar, V. B B. & Sriganga, B.K. (2014). A review on data mining techniques to detect insider fraud in banks. International Journal of Advanced Research in Computer Science and Software Engineering, 4(12), 370-380.
  22. Kundu, S. & Rao, N. (2014). Reasons of banking fraud – A case of Indian public sector banks. International Journal of Information Systems Management Research & Development . l4(1), 11-24.
  23. Mundra, S.S. (2015). Indian banking sector: Emerging challenges and way forward. Retrieved from https://www.rbi.org.in/Scripts/BS_SpeechesView.aspx?Id=955
  24. Nabhan, R. A., & Hindi, N. M. (2009). Bank fraud: Perception of bankers in the State of Qatar. Academy of Banking Studies Journal , 8(1), 15-24.
  25. Nzotta, S.M. (1999). Money, banking and finance: Theory and practice. Owerri: Intercontinental Educational publishers.
  26. Owolabi S. A. (2010). Fraud and fraudulent practices in Nigerian Banking industry. African Research Review, 4(3b), 240-256.
  27. Sabale, R. J. (2011). Frauds in India- Harmful Matter. Indian Streams Reserach Journal , 128-130.
  28. Silverstone, H. & Sheetz, M. (2004). Forensic accounting and fraud investigation for non-experts. London, John Wiley and Sons.
  29. Singh, M. (2013). A study on the financial frauds in Indian banking sector. Intercontinental Journal of Finance resource research review, 1(9), 82-95.
  30. Soni, R.R. & Soni, N. (2013). An investigative study of banking cyber frauds with special reference to private and public sector banks. Research Journal of Management Sciences, 2(7), 22-27.
  31. Willson, R. (2006). Understanding the offender/environment dynamics for computer crimes. Information Technology and people. 19(2), 170-186.
Abstract Views: 204
PDF Views: 140

Advanced Search

News/Events

Institute of Managem...

Deccan Education Society Institute of Management Development and Re...

S.B. Patil Institute...

Pimpri Chinchwad Education Trust's S.B. Patil Institute of Mana...

D. Y. Patil IMCAM, A...

D. Y. Patil Institute of Master of Computer Applications & Managem...

Vignana Jyothi Insti...

Vignana Jyothi Institute of Management International Conference on ...

Department of Commer...

Department of Commerce, Faculty of Commerce & Business, University...

Birla Institute of M...

Birla Institute of Management Technology (BIMTECH) 3rd Pritam Singh M...

OP Jindal University...

OP Jindal University, India 4th International Conference on  ...

Department of MBA, N...

Department of MBA, Narayana Engineering College Nellore International...

Vignana Jyothi Insti...

Vignana Jyothi Institute of Management Conference Proceedings,...

Online Proceedings R...

Conference Proceedings, March 2023 ISBN: 978-81-956810-6-8 ...

By continuing to use this website, you consent to the use of cookies in accordance with our Cookie Policy.