Made By: AKSHAY VIRKAR

Topic
Frauds & Scams in Banks
Made By : AKSHAY VIRKAR

Content
Introduction

Definition
About bank fraud Types of frauds RBI guidelines Conclusion

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:

Complexity of bank transactions

Failure in observance or procedures and norms laid down in branch operations

Both .i.e. insiders & outsiders

3 Categories Of Frauds Classified By Ghosh Committee

Insiders

Outsiders

source:http://www.rbi.org.in

Statistics on bank frauds in India

Source:http://www.riskpro.co.in

Frauds Done by Insiders
Rogue trading

Fraudulent loans

Wire fraud

Demand draft fraud

Theft of identity

Forged or fraudulent documents

Frauds Done by Outsiders
Bill discounting frauds

Forgery and altered cheques

Booster cheques

Stolen cheques

Credit card frauds

Accounting fraud

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.

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