This document discusses frauds and scams in banks. It begins by defining fraud as deceit or trickery for financial gain. It then discusses bank fraud, which means obtaining money from a bank through dishonest means. There are two main factors that contribute to increasing bank frauds: the complexity of bank transactions and failures to follow procedures. Bank frauds are classified into three categories and statistics on bank frauds in India are provided from various sources. The document outlines how frauds are conducted by insiders and outsiders of banks and guidelines from the RBI to strengthen internal controls and increase audits. It concludes that bank frauds are intended to illegally profit from banks and that fraud numbers continue rising each year.

1. Made By: AKSHAY VIRKAR

2. Topic
Frauds
&
Scams in Banks
Made By : AKSHAY VIRKAR

3. Content

4. 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

5. • 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

6. 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.”

7. 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

8. 3 Categories Of Frauds
Classified By Ghosh Committee

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

10. Statistics on bank frauds in India
Source:http://www.riskpro.co.in

11. Frauds Done by Insiders

12. Frauds Done by Outsiders

13. 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

14. 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.