Scribd Logo
Upload

Welcome to Scribd!

  • 62 views

    Scam in Banking Sector

    Uploaded by

    trinath ojha
    Banks are an essential part of the Indian economy. While preventing fraud primarily lies with banks, employees must exercise due care and diligence when handling transactions to protect public money. The RBI advises banks on fraud prevention best practices. Recent frauds have occurred through well-planned schemes exploiting loopholes, influence of powerful individuals, collusion between insiders and fraudsters, and willful defaulters. Causes of banking fraud include greed, lack of transparency, poor management information, excessive bonuses, non-independent audits, lack of ethics from leadership, and complex structures. Procedures help detect and report fraud in public sector banks. Basic banking ethics principles are mutual trust, benefit, good intentions, compromise, ethical

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Scam in Banking Sector

    Uploaded by

    trinath ojha
    62 views7 pages
    Banks are an essential part of the Indian economy. While preventing fraud primarily lies with banks, employees must exercise due care and diligence when handling transactions to protect public money. The RBI advises banks on fraud prevention best practices. Recent frauds have occurred through well-planned schemes exploiting loopholes, influence of powerful individuals, collusion between insiders and fraudsters, and willful defaulters. Causes of banking fraud include greed, lack of transparency, poor management information, excessive bonuses, non-independent audits, lack of ethics from leadership, and complex structures. Procedures help detect and report fraud in public sector banks. Basic banking ethics principles are mutual trust, benefit, good intentions, compromise, ethical

    Original Title

    scam in banking sector

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Banks are an essential part of the Indian economy. While preventing fraud primarily lies with banks, employees must exercise due care and diligence when handling transactions to protect public money. The RBI advises banks on fraud prevention best practices. Recent frauds have occurred through well-planned schemes exploiting loopholes, influence of powerful individuals, collusion between insiders and fraudsters, and willful defaulters. Causes of banking fraud include greed, lack of transparency, poor management information, excessive bonuses, non-independent audits, lack of ethics from leadership, and complex structures. Procedures help detect and report fraud in public sector banks. Basic banking ethics principles are mutual trust, benefit, good intentions, compromise, ethical

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    62 views7 pages

    Scam in Banking Sector

    Uploaded by

    trinath ojha
    Banks are an essential part of the Indian economy. While preventing fraud primarily lies with banks, employees must exercise due care and diligence when handling transactions to protect public money. The RBI advises banks on fraud prevention best practices. Recent frauds have occurred through well-planned schemes exploiting loopholes, influence of powerful individuals, collusion between insiders and fraudsters, and willful defaulters. Causes of banking fraud include greed, lack of transparency, poor management information, excessive bonuses, non-independent audits, lack of ethics from leadership, and complex structures. Procedures help detect and report fraud in public sector banks. Basic banking ethics principles are mutual trust, benefit, good intentions, compromise, ethical

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    You are on page 1of 7

    INTRODUCTION

    Banks are an essential part of the Indian economy.

    While the primary responsibility for preventing frauds lies with banks themselves.

    Banks are dealing with public's money and hence it is imperative that employees
    should exercise due care and diligence in handling the transactions in banks.

    The RBI has been advising banks from time to time about the major fraud prone
    areas and the safeguards necessary for prevention of frauds.
    GENESIS OF THE RECENT
    FRAUDS

    i) Frauds by well-
    iii) Frauds through
    planned fraudsters ii) Frauds by the
    collusion between
    by exploiting the influential people in iv) Wilful defaulters.
    the insiders and the
    loopholes in the the society.
    fraudsters.
    system.
    CAUSES OF FRAUDS IN BANKING
    1. Greed

    2. Lack of transparency

    3. Poor management information

    4. Excessively generous performance bonus payments

    5. Non independent internal audit department

    6. Lack of clear moral direction from senior management

    7. Excessively complex organisational structure


    PROCEDURE FOR FRAUD DETECTION AND
    REPORTING IN PSBs
    THE BASIC ETHICAL PRINCIPLES IN
    BANKING ARE
    Principle of Mutual Trust

    Principle of Mutual Benefit and Interest

    Principle of Good Intentions

    Principle of Business Compromise and Business Tolerance

    Principle of ethical improvement of business behaviour

    Principle of De-monopolization of One's Own Position

    Principle of Conflict Between One's Own Interests


    SOME EXAMPLES OF SCAMS IN
    BANKING SECTOR

    You might also like