FINANCE DISSERTATION SYNOPSIS

Title: Prevention of Fraud in Banking System of India

SUBMITTED BY:

LAKSHMI K.S.

DSBSPGDMA09023

DSBS, DSI
TITLE:

“Prevention of Frauds in Banking System on India”

INTRODUCTION:

Banking system occupies an important place in a nation's economy. A banking

institution is indispensable in a modern society. It plays a pivotal role in economic
development of a country and forms the core of the money market in an advanced
country.

Banking industry in India has traversed a long way to assume its present stature. It
has undergone a major structural transformation after the nationalization of 14
major commercial banks in 1969 and 6 more on 15 April 1980. The Indian banking
system is unique and perhaps has no parallels in the banking history of any country
in the world.

The Reserve Bank of India has an important role to play in the maintenance of the
exchange value of the rupee in view of the close interdependence of international
trade and national economic growth and well being. It also acts an important
regulator and also as the agent of the government in respect of India's membership
of the international monetary fund.

Fraud is defined as "any behavior by which one person intends to gain a dishonest
advantage over another". In other words, fraud is an act or omission which is
intended to cause wrongful gain to one person and wrongful loss to the other,
either by way of concealment of facts or otherwise.
Banks are the engines that drive the operations in the financial sector, which is
vital for the economy. While the operations of the bank have become increasingly
significant banking frauds in banks are also increasing and fraudsters are becoming
more and more sophisticated and ingenious. And hence, prevention of frauds in
banks has become a challenge for their management.

OBJECTIVES:

• Study on prevention and detection of frauds in banking systems

• Focus on utility of internet banking, mobile banking

• Cost benefit analysis of internet and mobile banking

METHODOLOGY:

The methodology in this study includes the collection of primary and secondary
data through different methods of each. Collection of primary data includes
observation and personal contacts of employees of State Bank of Mysore.
Collection of secondary data includes methods such as gathering data from the
official website of State Bank of Mysore, India penal law, Reserve Bank of India
and other related sites.

SCOPE:

This study on the prevention of frauds in banking system in India and the utility of
internet banking and mobile banking will help me to analysis the advantages and
disadvantages in the system. This will help me in suggesting measures to overcome
the shortcomings associated with these channels. As a student I will be benefitted
by gaining more knowledge about the frauds, prevention acts taking by the RBI
and banks and also to understand the effect of frauds on the country’s economy.