Financial frauds on financial performance of banking industry

Abstract

The growth of Indian Economy is a combination of contribution of different sectors. The banking industry is the back bone of Indian Economy and its growing role in the Global Economy. Since, nationalization banking industry has witnessed many ups and downs in its sustainability. Though the banking industry is regulated by the Reserve Bank of India and policies of the Government from time to time towards its sustainability it needs to bring reforms in the strict implementation of Banking Regulation Act. During last two decades, banking industry has been reeling under financial crisis, losses and debts due to liberal loan sanction policies and poor recovery rate. This was due to frauds and corrupt practices due to some or other reason. This leads to financial burden not only on the Government but also on the people of the country. The present research paper examines the reasons for financial frauds and necessary suggestions are being made to mitigate the frauds and to develop strong and efficient control mechanism.