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Regulating Bank Frauds in India

The document discusses the legal regime in India for regulating bank frauds. It notes that banks are vulnerable to fraud due to handling large amounts of money. While laws have been passed over the years, the system of scattered laws is insufficient for dealing with modern frauds enabled by new banking technologies. The document aims to study challenges in the banking sector, types of financial frauds, customer fears, and existing laws/measures. It hypothesizes that flaws in existing laws allow space for fraud. The research methodology examines primary legal sources and secondary sources to address questions on the sufficiency of preventive measures and need for an independent law focused on bank frauds in India.

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sathiya
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326 views3 pages

Regulating Bank Frauds in India

The document discusses the legal regime in India for regulating bank frauds. It notes that banks are vulnerable to fraud due to handling large amounts of money. While laws have been passed over the years, the system of scattered laws is insufficient for dealing with modern frauds enabled by new banking technologies. The document aims to study challenges in the banking sector, types of financial frauds, customer fears, and existing laws/measures. It hypothesizes that flaws in existing laws allow space for fraud. The research methodology examines primary legal sources and secondary sources to address questions on the sufficiency of preventive measures and need for an independent law focused on bank frauds in India.

Uploaded by

sathiya
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

LEGAL REGIME TO REGULATE BANK FRAUDS IN INDIA

Introduction.

Banking frauds is not a new concept. Due to the advancement of technologies lot of
fraudulent activities is happening everywhere and banks are not an exception. Any
organisation where money is hugely involved is always subjected to frauds and more
importantly banks like financial institution which deals only with money is vulnerable to
frauds often. After nationalisation of banks this challenge increased and Indian banking
system was globalised in last few decades. There are many reasons for these kinds of frauds,
and very importantly frauds happen due to the lack of properly trained staff during expansion
and many security reasons. Over years the government had took many steps legislatively to
curb and to deal with all social and economic problems. The ultimate need to study this is
because the present century is subjected to lot of money transaction services by the banks like
ATM’s, EFT, RTGS, mobile banking etc,.. as all these services made the process of banking
easier to customer had also attracted the attention of frauds.

Aims:-

 To study the present day challenges in banking sector.


 To discuss the various types of financial frauds happening in banks including online
banking..
 To analyse the difficulties and the fear of fraud that a customer have with the banking
services.
 To find out the laws and measures taken by the government to curb the same.

Hypothesis:-

The study proceeds on the hypothesis that India which has a scattered laws is insufficient to
deal with the frauds that is happens in the banking sector. And the flaws or holes in the
existing laws is giving enough space for fraudulent activities in banks.

Literature review:-

1. Bank Frauds1.

In this article the author had discussed about different kind of banking frauds and had felt that
transparency could minimize or totally eliminate the amount of fraud in banking system.

1 [Link]
2. Bank Frauds.2

The author of this article majorly concentrated on the subject of banking and the role and
duties of banker and banker – customer relationship. He had given only a very nominal
attention to the concept of bank frauds.

3. Banking System, Frauds and Legal Control, RP Nainta3

This paper was worked by the author by considering both pre and post independence era and
major importance was given to the history of development of banks and the importation of
technology in the same. major issues with regard to e-banking was also discussed.

4. SocioEconomic Offences: Nature and Dimensions Bank Fraud- Types and


Prevention.4

The author of this article had conducted a very strong research on the prevention of banking
frauds. And the steps the legislation had took towards curbing the fraud rate by keeping in
mind the present day challenges due to the advancement in the banking industry.

Research Methodology:-

The method adopted for this paper is in a manner so as to utilise all the available material
information with regard to the topic for the same doctrinal research method has been used.
Primary sources like statutes, schemes, regulations, rules etc,... will be included. And the
secondary sources were also used for the research.

Research Questions:-

 Whether the existing preventive measure are in such a place to address the present day
frauds in banks?
 Should the state legislate a independent comprehensive legislation particularly to
check Indian bank related frauds?

Tentative Chapterisation:-

Chapter I will introduce the basic concepts like normal banking systems .

2 [Link]
3 [Link] › AbeBooks › R P Nainta
4[Link]
[Link]
Chapter II explains the different forms of banks and their functions.

Chapter III assembles all the known frauds.

Chapter IV

Chapter V recommendations and conclusions.

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