A Study on Compliance Levels for Preventing Financial Frauds with Special Reference to Public Sector Banks in India

Finance is a very coined term used everywhere. Probably, few people understand the actual meaning of finance. It is not just money/cash/funds/capital. It is the flow of funds from the givers to the seekers in the society. A number of processing mechanisms do exist in India to translate and carry o this work. Banking is the most commonly used service vehicle for this purpose. When the flow of funds happens through banking, due to mis management or poor internal check and control, there may be instances of frauds in financial activities of bank. The frauds happening via or in banks have a huge impact on entire banking sector thus leaves the question of reliability on banking system. Perhaps, RBI has given many compliance procedures also to be followed while attending a financial transaction in a bank, but still the frauds are continued in happening. Surprisingly, the lower level to top level staff is highly involved in these scams. The financial frauds that are coming out on consistent basis will result into the slow pace of growth of Indian economy. The present paper tries to discuss the impact of financial scams and the compliance procedures followed by the staff at public sector banks. The paper brings out some interesting recommendations/findings from the study.