Essay On Bank Fraud In India
Hello Friends, In this post “Essay On Bank Fraud In India | Bank Fraud Essay“, we will read about Bank Fraud with its all aspects as an Essay in detail.
Essay On Bank Fraud In India | Bank Frauds Essay
After the economic liberalization started in 1991 in India’s banking system, there has been a lot of expansion and changes have also taken place.
Generally, arrangements are also made to monitor banks in every country. And the Reserve Bank does this work in India, but despite this, banks in India have their own challenges.
These challenges are related to ethics, financial crisis, and corporate governance in the functioning of banks.
The ever-increasing NPA (sinking debt of banks) and the money withdrawn by fraud are troubling the banks.
According to RBI annual report 2019-20, the amount involved in banking frauds is Rs 1.85 lakh crore in 2019-20 and the number of frauds is 8,707. But several big bank frauds have put the banking system in India in serious condition.
With this, serious questions have also arisen on the credibility of the monitoring and audit system of banks.
Body (Essay On Bank Fraud)
Better health of the country’s banking and the financial system determines both the production and consumption of goods and services.
It also gives a clear indication of the standard of living of the citizens of the country. Therefore fraud with banks is a matter of great concern for any country.
Recently, one by one bank scams has put the banking system, monitoring system on banks, and audit system of banks in the dock.
In the latest cases of bank fraud, the biggest scam has happened with Punjab National Bank.
In this case, Diamond merchant Nirav Modi has looted Punjab National Bank for about Rs 12700 crore.
Apart from this, Vikram Kothari, the owner of Rotomac Pen, fraudulently committed Rs 2919 crore with seven banks including Bank of Baroda. The Central Bank of India, Reserve Bank of India is responsible for monitoring the banking system of the country.
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According to the Reserve Bank of India, bank fraud in India can be divided into three categories.
- Deposit Related Fraud
- Advance Related Fraud
- Service-Related Fraud
Deposite Related Fraud:
With the use of new payment systems and the technology of banks, deposits related frauds are now becoming rare happening.
Advance Related Fraud:
Advance-related fraud is a big challenge for Indian banks. High-value loan default in advance related fraud And the scam involves grabbing the money of banks. In the case of bank fraud, there have been cases of money grabbed from banks through Fake letters of Credit.
The biggest reason for these riggings is the fall in the parameters of the corporate sector and connivance with the big officials of banks.
India’s public sector banks account for only 18% of the total fraud cases. But when we look at the amount figures, public banks account for 83% of the total amount of fraud.
After the recent bank rigging, several new steps have also been taken by the government to protect the banking system from its losses.
Conclusion (Essay On Bank Fraud)
Finance Minister Arun Jaitley says that if there are scams happening in many branches of the same bank and no voice is raised then it is a matter of concern. It is regrettable that the bank management remained ignorant of this matter or negligent.
Those who do business in the country should do their work with ethics otherwise its consequences can be serious.
Apart from all this, banks should also take special care of their employees because some employees work closely with fraudsters.
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