Financial Frauds And Scams in India Siror - 246747 (U.P), India Jaipur (Rajasthan) India ___K.G. Publications 7, Sona Enclave, Modinagar (U.P.) Edited by Dr. Jeet Singh Dr. Preeti Yadav | MSA [Link]., MA (Eco.), NET MBA, [Link]., Ph.D. *), NET (Commerce), Ph.0. Associate Professor, Department of Commerce, ‘Amity Business School, ‘Government Degree College, Amity University Rajasthan,RECENT BANK SCAM IN INDIA : SPECIAL REFERENCE WITH PNB Lokesh Uke, As. hi Dr. Harisingh ABSTRACT Financial frauds are increasing day by day. Public money is not safe even the bank. Bank: losing the trust of consumers. Government of India should make 1 ici educe t cam. It is very important to save the image of ne Indian banks as well as the financial syst the world. So w ould know the major factors which plays major role to execute this kin financial frauds. The major concern of this paper is to reveal the reason of bank enlighten the recent bank scam happen in India. The expert opinion and news are used for di Keywords : - Banks, India, Scam, PNB, Image, consumers, trust INTRODUCTION Bank scam is very dangerous for any economy of any country because financial system is backbone of country a d the major portion of financial system is depends on the all working bank that particular country. India facing the problem of bank scams since last many years. Government of India should take action to stop this scam because it will adversely aff conomical system. Lots of NPA is creating due to these kinds of financial frauds, In February 2 the biggest financial happened in Indian PSB Punjab National Bank (second largest commercial B of India) by jewellery merchant Nirav Modi. This was very shocking news for not only for India also for the world. This was global news which spread out all over the world, This news not ¢ affects the FII but also the mindset of every citizen of India who is also a big investor. Every citi of India keeps money with bank for safety and security Every citizen earns money very hardly keeps money in the bank account with this trust that his money is safe. But his scam play rok chan h PNB scam does not affect the money keep: its bank account but somehow it would bear by account holders indirectly in long run. It also aff India credit rating across the world. It also change the mindset of the major investors who inves! India. This scam not only affect the Indian economy but it also affect the growth rate of the country ¢ the mindset of the Indian consumer. AlthotFinancial Frauds and Scams in india OBJECTIVES OF THE stuDy 1. Find out the 1eWS papers text t have been used for According to RBI report & 1 lakh crore bank fraud happened wit last S years. Article published in times of India dated 2 may 2018 RBI said that @1 lakh crore bank frauds in India during last 5 years. _* Following details of frauds provided by RBI during last § years, From the above chart it is clear that total 23866 bank frauds cases recorded of worth & 100715 The condition of Bank’s NPAs in India The condition of NPAs of all banks in India till December 2017 was % 840958 crore by industry loan,Financial Frauds and Seams in ty Following chai 8 chart is showing the NPAs of the leading bank running in Indi: 250000 200000 ars-rbi/articleshow/[Link]) ported 3, Arvind Subramanian said the reason for bank seam is © Public sector owner: apped in bank recruitment © Handicapped in re ent and governanc * Decision making { due to the four C’s ( Court, CBI, CVC, CAG) . J sector bank are crater of wealth Fee year . c of bank had t fe in recognition of bad and stressed assets in pas n must be accompanied through ensure that NPA related issue are not repeat , a 8 od lots noney to reforn . lone and regulated by regulator 4. Huge amount of banking frauds in financial year 2018 * Dr. Sukhamaya Swain, Dr. Lalata K Pani Government should hire the third party such as charted accountant , advocate or auditors , rat action if any mistake found. and should take strict ies to check account related fra Bank follows only traditionally focused method for security, bank should consider arranging ‘ogram of cyber risk and other measu 5 Reason for banking frauds * Opinions of Vijay Sardana (The Economist) out PNB fraud February 2018 Vijay Sardana (Economist) said that if it will be given all author and power to some people then probability of happening would be high. The sane case happened PNB. Government should remove discretionary power from individual PNB scam is the result of failure of internal control and poor management system. was not linked with Society for Worldwide Interbank Financ Core Banking Sys Telecommunication by PNB it is the violation of RBI guidelines.Financial Frauds and Scams in India 38 ‘ Bigee 2 ee Penis Rajan (The former governor of RBI) Soe Indian banks are still following the oldest system which Is not adequate to Madan Lal Bhasin _ Madan Lal Bhasin Said in his article that 60% fraud cases happen due to the false documentation and control. Professional and managerial employees involve in 45% of the fraud cases banks are not following yet the zero tolerance policies. institutions, most of the frauds detected by the customer complaints. professional should play professional role for fighting against frauds. t of financial frauds rs haye started to like private bank rather than government bank. ‘trade negatively affected by the financial frauds happening in the banks. 'PNB scam happened in February 2018 impacted negatively on Indian economy, "Diamond Business and jewelry sector affected negatively due to the PNB scam Happened in ‘economy is being rocked by a banking scandal involving diamond merchant Nirav ‘accomplices in the second biggest bank in the country, the Punjab National Bank “factors of PNB bank scam is the failure of internal control and the poor management of to this PNB bank fraud the banks and the jewelry sector are come under pressure. Now fit from PSB has become very difficult for diamond businessman, are now shifting from government bank to ‘public sector banks. business affected negatively due to the bank fraud happened in India. "Government of India must make serious polices to control the Indian financial system. RBI ‘the policies to control the bank frauds. private bank. The trust of customer became less56 Ee a Fi ;ncial Frauds and Scams in india 8. httpywww ¢ ‘ perm ares ne 2 ennstcesttetriornn nentcheeia _hiips:iwaw investep O80 poh Le reaaleall aa elamingedn aura Ot Sosa Sona (2008), State of raving evaluation i commer! bank cae Stat 11, taupel O¢ Seca Seances AndManagenont Sects, Vo XXXVI No, Sept 9 3738 ee Jantiying and controling computer crime and employee ‘raue lence agement & Data Systems, Vol. 99 No. &. pp. 340-6 R.; Marchant, M.L. and. Bridendail, PH. (1992). 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