Banking Fraud – Prevention and Control

Banking Fraud is posing danger to Indian financial system. Its colourful impact may be understood be the truth that within the 12 months 2004 wide variety of Cyber Crime have been 347 in India which rose to 481 in 2005 displaying an growth of 38.5even as I.percentcategory crime stood at 302 in 2005 inclusive of 186 cases of cyber fraud and sixty eightcases cyber forgery. consequently it becomes very vital that occurrence of such frauds need to be minimized. more scaryis the reality that such frauds are entering in Banking sector as properlyICICI Bank toll free number

within the modernworldwide situation Banking system has acquired new dimensions. Banking did spread in India. these days, the banking machine has entered into competitive markets in regions masking aid mobilization, human useful resource developmentclient offerings and credit score management as well

Indian’s banking device has numerous fantastic achievements to its credit score, the most putting of that is its reach. In fact, Indian banks at the moment are unfold out into the remotest areas of our united states of america. Indian banking, which changed into running in a rather secure and protected surroundings till the start of Nineteen Nineties, has been driven into the choppy waters of excessive competition.

a valid banking system have to possess three primary characteristics to defend depositor’s hobby and public religion. Theses are (i) a fraud free tradition, (ii) a time tested great exercise Code, and (iii) an in residence instant grievanceremedial devicea lot of these situations are their missing or extremely weak in India. phase 5(b) of the Banking law Act, 1949 defines banking… “Banking is the accepting for the reason of lending or funding, deposits of money from the reasonof lending or funding, deposits of cash from the general public, repayable on call for or in any other case and withdraw capable via cheque, draft, order or otherwise.” but if his money has fraudulently been drawn from the bank the latter is beneath strict duty to pay the depositor. The financial institution therefore has to make sure always that the cash of the depositors isn’t always drawn fraudulently. Time has come while the security aspects of the banks have to be handled on precedence basis.

The banking gadget in our country has been taking care of all segments of our socio-monetary installationthe objectcontains a dialogue at the upward thrust of banking frauds and various techniques that can be used to keep away fromsuch frauds. A bank fraud is a deliberate act of omission or commission via any person achieved inside the path of banking transactions or inside the books of accountsresulting in wrongful benefit to any man or woman for a transient length or in any other case, with or with none financial loss to the bank. The applicable provisions of Indian Penal Code, crookprocedure Code, Indian agreement Act, and Negotiable devices Act relating to banking frauds has been stated within thepresent Article.


Banking system occupies an critical vicinity in a nation‘s economy. A banking group is integral in a current society. It performs a pivotal role in financial development of a country and bureaucracy the core of the money market in a complicated usa.

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