Abstract: This scholarly treatise undertakes a rigorous critique of the phenomenon of bank fraud within the Indian banking sector, with an emphasis on the regulatory framework delineated for fraud mitigation. The investigation delves into the intricate causes of bank fraud, highlighting the pivotal roles of deficient internal controls, inadequate employee training, and the onerous demands placed upon banking personnel. It meticulously evaluates the adherence of bank employees to established fraud prevention protocols, particularly those stipulated by the Reserve Bank of India (RBI). Furthermore, the research provides a sophisticated analysis of bank employees' perceptions of the efficacy of these preventive measures and their cognizance of varied fraud typologies. The findings elucidate substantial shortcomings in the implementation of internal control mechanisms and identify critical contributory factors to bank fraud, including insufficient training, employee overload, competitive pressures, and low compliance with RBI guidelines. The research underscores the necessity for banks to proactively strengthen internal controls and augment employee training programs. This comprehensive assessment proffers substantive recommendations to refine extant fraud prevention strategies, thereby mitigating financial losses and reinforcing the integrity of the Indian banking industry.
Keywords: Banking Frauds, Fraud Detection, Risk Management, Reserve Bank of India.
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DOI:
10.17148/IJARCCE.2025.14116
