Made By: AKSHAY VIRKAR

Topic

Frauds
&
Scams in Banks

Made By : AKSHAY VIRKAR

Content
 Introduction
• The progress of business is depends on
expansion & diversification

• The indicators of growing economy are

acceleration in per capita income, standard of
living, national wealth, national incomes etc.

• In the growing economy some unethical

practices has been observed
• Nowadays frauds, scams, corruption etc. has
entered in every sector

• Fraudulent practices are like slow poisoning

which destroy the system of faith, loyalty, and
reliability confidence of the people and help
to proceed towards underdeveloped society
 Definition
• According to Collins English dictionary fraud
can be defined as,
“Deceit, trickery, sharp practices or breach of
confidence, perpetrated for profit or gain
some unfair or dishonest advantages.”
 Bank Fraud
• Bank fraud means obtaining money or property held
by bank or customer of the bank in order to make
more money

• The reason of making fraud is to cheat the bank for

financial purpose

• Two major factors are responsible for increasing bank

frauds:

Failure in observance or
Complexity of bank
procedures and norms laid
transactions
down in branch operations
 3 Categories Of Frauds
Classified By Ghosh Committee
source:http://www.rbi.org.in
Statistics on bank frauds in India

Source:http://www.riskpro.co.in
Frauds Done by Insiders
Frauds Done by Outsiders
 RBI Guidelines
• Supervisory strategy
banking supervision, focuses on 2 other areas:
1) Strengthening of the internal control systems
in banks
2) Increased use of external auditors in banking
supervision
 Conclusion
Bank frauds are done to make money by
cheating the banks. There are several
loopholes in banking system that has been
used by fraudster. The numbers of bank
frauds has been increasing year on year along
with that, RBI also engage in making the
banking system accurate and secured.