Banking system, frauds and legal control / edited by Sonia Arora and Vrinda Arora.

Includes bibliographical references and index.

The banking sector -- Credit risk management procedures -- Banking regulation and supervision -- Code of banking practice -- Legal issues in business -- Principles of lending and loan policy -- Banking system reformation -- Banking fraud -- Banking issues in the 21st century -- The banking sector and financial system -- Law banking -- Perfection of banking legislation -- Law of bank accounts -- Bank and banking fraud -- Technology and security standards.

"Banking law is based on a contractual analysis of the relationship between the bank and the customer. The definition of bank is given above, and the definition of customer is any person for whom the bank agrees to conduct an account. Banking Fraud is posing threat to Indian Economy. Its vibrant effect can be understood be the fact that in the year 2004 number of Cyber Crime were347 in India which rose to 481 in 2005 showing an increase of 38.5% while I.P.C. category crime stood at 302 in 2005 including186 cases of cyber fraud and 68 cases cyber forgery. Thus it becomes very important that occurrence of such frauds should be minimized. More upsetting is the fact that such frauds are entering in Banking Sector as well. An effective banking supervisory system should consist of some form of both on-site and off-site supervision. Banking supervisors must have regular contact with bank management and a thorough understanding of the institution's operations. Banking supervisors must have a means of collecting, reviewing and analyzing prudential reports and statistical returns from banks on a solo and consolidated basis. Banking supervisors must have a means of independent validation of supervisory information either through on-site examinations or use of external auditors. An essential element of banking supervision is the ability of the supervisors to supervise the banking group on a consolidated basis. Supervision requires the collection and analysis of information. This can be done on or off-site. Risk management is the analysis of risk coupled with the implementation of quality risk controls. Risk management is needed for banks and financial institutions, mainly because it insures a margin of safety that guarantees a levered financial firm's solvency. The unpredictability and inherent risks associated with the financial markets makes it vital for financial institutions and banks to implement risk management controls. This book throws lights on the evolution of the banking system, Reserve Bank of India, nature of crime in the banks, legal provisions in this regard, and the safety and security measures adopted in banks, as well as new developments in this area." -- Back cover