CBI New Corruption List

Not surprisingly Banks are heading all the way in INDIA for being no 1 in corrupted list published by RBI. The report published by the CBI ranks the most corrupted central institutions in following order:

• Banking
• Insurance
• AICTE
• Railways

The organisation as per the reports which is more prone to fraud and corruptions are

• Banking
• Protector of Emigrants
• Railway Protection Force
• CGHS
• ESI Corporation

The common methods of fraud in banking's are:

1. Forged or manipulated document
2. Inflated property and stocks value

Incidence of employee fraud and external fraud has risen sharply in banking domain.

The reason for losses due to employee can be attributed to:

1. Non Compliance of processes and polices
2. connivance with mediator

In one of the case of SBI the accused C Raghuram has taken loan on fake financials. It has been to Notice that he has in fact cheated several banks like this. The accused opened fictitious accounts in OBC bank and created multiple mortgages for a flat which in turn has been given as collateral to different banks like SBI, SBBJ, Central Bank of India & Vijaya Bank.

In another case loan wee sanctioned to many customer by an employee of state bank of Hyderabad without conducting due diligence

Thus with regard to banking it seems that:

1. Data standardisation for de-duplication check is missing
2. Data sharing within several banks are missing which might prevent the fraud
3. Cross check or maker and checker concept are being compromised for cost saving
4. Employee pre-screening is not being done properly or the same is missing

These all organization need to take some major steps to curtail the fraud (internal and External) otherwise the nature of business they are into will keep them hanging on such grades