The banking sector in India has lost nearly 227.43 billion between the years 2012 to 2016. The recent banking scams of PNB shock the entire nation. Followed by this, the recent fraud that has come into existence is that of Vikram Kothari. An 800 crore banking fraud case has been reported against the Rotomac pens owner. These back to back frauds in the reputed banks have raised many questions on the stability and security of the banking sector. Are the banks in India really secure?
Why So Many Banking Scams?
These banking scams are not only an eye-opener but also one significant question on the lack of technology in the banking sector. The frauds that happened were smoothly done for more than 7 years. Moreover, no higher authorities were aware of the situation going in their banks. Does it represent the lack of communication in between the banking staff or it’s merely an example of negligence? It was with the retirement of the staff that the fraud case came to light.
The summary of the banking scams happening recently is that no one was actually bothered as to what is happening around them. Apart from highlighting the negligence in the awareness, these frauds also stand a question mark on the policies of the banking system. Generally, the banking officials are transferred after 2-3 years, but in the present case, the employees were on their post for 7 years. Wasn’t the people around careless about the mentioned policies of the banks?
Unlike the Indian banking system, the western countries have well-designed banking policies and rules for avoiding any such frauds. Many international banks have strengthened their rules and regulations after the 2008 crisis. Unfortunately, Indian banks are way too lacked behind in securing themselves. The present frequent banking scams which have gained worldwide attention are now working as a driving force for attaining security.
Even if these scams are viewed as an eye-opener, these scams will continue unless and until no preventive measures are taken. The banking system should be made more accountable and should be enhanced with the latest technologies for ensuring secure working.