Financial Fraud In Banking Sector & It`s Consequential Impact On Banking System

ISBN Number : 978-93-5051-282-1

Library Price : Rs.955

Library Dollar Price : 38$

Book Edition : First

Year of Publication : 2012

No. Of Pages : 414

About The Book

The Financial Institutions particularly the Banks have historically been prone to frauds and prevention of such instances / frauds has consistently been engaged the attention of regulators all over the world. The globalization of the financial system and liberalization of the economy has further exposed the Banking system to risks and attempts of fraud perpetration. Though with the diversification into different areas/activities, the Banks have been consistently reviewing their systems, introducing technology with appropriate inbuilt control mechanisms aimed at prevention of frauds by the unscrupulous elements both within and outside the Banking System, yet the growing increase in volumes of business and Banking transactions, the risks have also increased manifold. Therefore, it is imperative that while implementing technology with inbuilt controls and risk management techniques, there is need to have strong vigilance apparatus in Banks to monitor the whole set of operations and ensure prevention of frauds.


This book has been divided into eight chapters. The First Chapter throws light on the Historical Analysis of Banking System, it`s existence from the primitive stage to present position.

Second Chapter has been devoted to discussion on Anatomy of Frauds and their Prevention.

The Third Chapter, deals with the Major Financial Frauds/Scams and their analysis including Scam case of Harshad Mehta and Ketan Parikh.

The Fourth Chapter deals with Computer Crime and Frauds in Banks. The author has suggested the number of measures to prevent frauds in Computerised Branches of the banks,

In the Fifth Chapter, author examines the Role of Reserve Bank of India in the prevention of frauds/malpractices.

Similarly in Chapter Sixth, the Role and Function of Central Vigilance Commission in prevention of bank frauds are explained in detail.

In Chapter Seventh "FRAUDS AND IT`S LEGAL CONTROL", the Author has discussed leading Judgment Supreme Court and Special Court cases are being discussed in detail.

In the last Chapter on Major Findings and Suggestions for strengthening the existing system keeping in view of the international policies followed for the prevention of frauds and mal-practices in the Banking Sector.

Contents :

I. Theoretical Background
II. Anatomy Of Frauds In Banks And Their Prevention
III. Major Financial Frauds/Scams And Their Analysis
IV. Computer Crime & Frauds In Banks
V. The Role Of Reserve Bank Of India In The Prevention Of Frauds
VI. Central Vigilance Commission Vs. Bank Frauds
VII. Frauds And It`S Legal Control
VIII. Major Suggestions & Conclusions Table Of Cases

About The Author

Dr. Radhakrishna A. Kini is well reputed banker, having banking experience of 41 years in Punjab National Bank. During his service period, he has qualified B.Com, LL.M., and C.A.I.I.B. and secured Second Rank in LL.M. exam of Bombay University in 1972. After his retirement, he has registered for Ph.D. in Law with RTM Nagpur University on the subject "FINANCIAL FRAUD IN BANKING SECTOR AND IT`S CONSEQUENTIAL IMPACT ON BANKING SYSTEM." (A Critical and Analytical Study of Bank Frauds with Relevant existing Rules and Regulations of Law.) and he has been awarded "Doctorate" in 2009.

During his service, as a Regional Manager, Kanpur, he detected a large number of frauds involving crores of rupees particularly in Kanpur City and Eastern UP Districts and recovered substantial amount most of the frauds committed by the branch managers / officers who were intimate link with the senior Executives like General Managers and Directors of the Bank. According to him, eradication of Frauds / corruption should begin from the top and the abuse of administrative discretion is root cause of the corruption.

The author has every confidence that with the use of this book, number of bank frauds / scams would be avoided by following laid down systems, exercising judicious use of discretionary powers and control over advances, investments and impersonal accounts, etc.

Book Reviews

Login Form