A survey has just revealed that the Indian banks including the cooperative banks have shown a high incidence of frauds over a year and a half and the trend is likely to continue with the country’s economy betraying signs of weakness.
According to the survey, no banks whether public, private or foreign are able to buck the trend. All of them are equally affected by it.
The prospects of an imminent slowdown in the economy are only expected to boost the incidence of financial crimes in the country.
While most of the respondents in the survey indicated an increase in frauds, more than seventy percent of them indicated an increase of not less than five percent than the last year.
The survey has shown retail and corporate banking to be more prone to frauds.
The survey has listed asset size, lack of supervision by senior staff and complicated business scenario and business pressure as the main factors responsible for the growing incidence of frauds in the banks.
According to the RBI sources, the number of fraud cases rose up from 21,247 in 2007-8 to 24,797 in 2009-10.
The survey’s conclusion is that most of the banks are yet to show enough preparedness to prevent the fraud cases.