INDIAN ECONOMY AND THE RISING CHALLENGE OF BANKING FRAUD : A LEGAL PERSPECTIVE

Banking fraud has emerged as a significant challenge to the stability and growth of the Indian economy. As the banking sector expands with advancements in technology and the proliferation of digital banking services, the frequency and sophistication of fraudulent activities have also increased. This study examines the rising instances of banking fraud in India, their economic repercussions, and the adequacy of the existing legal framework to combat these issues. It explores various types of banking fraud, including cyber fraud, loan fraud, and identity theft, and evaluates their impact on financial institutions and the broader economy. The paper highlights the challenges within India’s legal system, such as procedural delays, inadequate technological expertise, and inconsistent enforcement of laws, which hinder effective fraud prevention and prosecution. By emphasizing the need for robust legal reforms, inter-agency collaboration, and technological advancements, this study provides a comprehensive analysis of the measures required to address the evolving menace of banking fraud and ensure the integrity of India’s financial system.