Banking Fraud – Prevention and Control

Banking Fraud is presenting danger to Indian Economy. Its lively impact can be perceived be the way that in the year 2004 number of Cyber Crime were 347 in India which rose to 481 of every 2005 appearance an increment of 38.5% while I.P.C. classification wrongdoing remained at 302 of every 2005 including 186 instances of digital misrepresentation and 68 cases digital fabrication. Hence it turns out to be vital that event of such fakes ought to be limited. More disturbing is the way that such cheats are entering in Banking Sector also. Bankdash

In the current day, Global Scenario Banking System has gained new aspects. Banking spread in India. Today, the financial framework has gone into serious business sectors in regions covering asset preparation, human asset advancement, client administrations and acknowledge the board also.

Indian’s financial framework has a few exceptional accomplishments shockingly, the most striking of which is its compass. Truth be told, Indian banks are currently fanned out into the remotest region of our country. Indian banking, which was working in an exceptionally agreeable and safeguarded climate till the start of 1990s, has been driven into the rough waters of extraordinary rivalry.

A sound financial framework ought to have three fundamental qualities to safeguard investor’s revenue and public confidence. Propositions are (I) a misrepresentation free culture, (ii) a tried and true Best Practice Code, and (iii) an in house prompt complaint medicinal framework. This multitude of conditions are their missing or incredibly frail in India. Area 5(b) of the Banking Regulation Act, 1949 characterizes banking… “Banking is the tolerant to loan or venture, stores of cash from the motivation behind loaning or speculation, stores of cash from people in general, repayable on request etc. and pull out capable with a money order, draft, request etc.” But assuming his cash has falsely been drawn from the bank the last option is under severe commitment to pay the contributor. The bank thusly needs to guarantee consistently that the cash of the contributors isn’t drawn falsely. Opportunity has arrived when the security parts of the banks must be managed on need premise.

The financial framework in our nation has been dealing with all portions of our financial set up. The Article contains a conversation on the ascent of banking cheats and different techniques that can be utilized to keep away from such fakes. A bank extortion is a purposeful demonstration of exclusion or commission by any individual completed throughout banking exchanges or in the books of records, bringing about unfair increase to any individual for a transitory period etc., regardless of any financial misfortune to the bank. The pertinent arrangements of Indian Penal Code, Criminal Procedure Code, Indian Contract Act, and Negotiable Instruments Act connecting with banking cheats has been refered to in the current Article.


Banking framework possesses a significant spot in a country’s economy. A financial establishment is key in a cutting edge society. It assumes a crucial part in monetary improvement of a nation and structures the center of the currency market in a high level country.

Banking industry in India has crossed quite far to accept at least for a moment that its current height. It has gone through a significant primary change after the nationalization of 14 significant business banks in 1969 and 6 more on 15 April 1980. The Indian financial framework is one of a kind and maybe has no equals in the financial history of any country on the planet.


The Reserve Bank of India plays a significant part to play in the support of the trade worth of the rupee taking into account the nearby relationship of global exchange and public financial development and prosperity. This angle is of the more extensive dependably of the national bank for the upkeep of monetary and monetary dependability. For this the bank is depended with the care and the administration of country’s worldwide stores; it acts additionally as the specialist of the public authority in regard of India’s participation of the global money related reserve. With monetary improvement the bank additionally plays out an assortment of formative and limited time capacities which in the past were enlisted being outside the typical domain of focal banking. It likewise acts a significant controller.


Banks are the motors that drive the tasks in the monetary area, which is crucial for the economy. With the nationalization of banks in 1969, they additionally have arisen as motors for social change. After Independence, the banks have gone through three phases. They have moved from the person based loaning to philosophy based loaning to the present time intensity based loaning with regards to India’s monetary advancement strategies and the most common way of connecting with the worldwide economy.

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