Frauds in banking: Corporate governance issues

Abstract

Indian banking sector has witnessed a massive growth since liberalisation of the Indian economy in 1991. It is regulated and supervised by the Reserve Bank of India (RBI) and has a reputation of being governed with stringent laws and regulations in place. It is widely believed that it was because of these regulations that Indian economy could emerge unscathed from the jitters of the Financial Crisis of 2008 that were felt all over the world. However, the banking sector in India faces its own challenges when it comes to ethical practices, financial distress and corporate governance. This report deals with a detailed analysis of these issues using an interview-based approach, spanning across all players involved in reporting financial misconduct. It therefore provides a 360 degree viewpoint and seeks to pitch recommendations for the same.