As you would know, these are real-life stories that we read on newspapers or watch on TV. And why do they occur? Because banks in India are frequently hit by scams and frauds.
Unfortunately, scams and frauds that affect banks in India affects millions of people every year. And you could be one among those too. Unless you’re careful with your money, that is.
Just in case you don’t know how bank scams affect people’s life, here’re some details.
How Bank Scams Affects People
bank money safety
Bank scams and frauds don’t affect only their customers. Indeed, they have a negative impact on several other people as well as industries.
Bank Customers
A customer is unable to withdraw money from their accounts for daily needs or even medical emergencies. They’re unable to pay fees for educating their children or get the money they would save for buying that dream home or for marriage.
Worst hit are people that invest large amounts in Fixed Deposits just because one bank promises to pay slightly higher interest than others.
Sadly, senior citizens and retirees who invest savings of their lifetime because some bank offers half to one percent higher interest are worst hit when a bank gets hit by scam or fraud and has to suspend or close operations.
Shareholders & Other Investors
A scam directly affects the bank’s shareholders. Stock prices of the scam or fraud hit bank come tumbling down on the stock exchanges. Once reports of a scam or fraud get into the news, shareholders rush to sell off their stocks. As a result, the once profitable stock begins losing value.
It also impacts investors in Exchange Traded Funds (ETFs) and Mutual Funds (MFs). That’s because an ETF or MF could have invested in stocks of the affected bank.
In fact, lots of ETFs and MFs in India invest part of their money taken from the public on buying Mutual funds and bank stocks because they’re profitable.
When stocks of a bank start spiraling downwards, the value of your ETF and MF investments will also nosedive. Even a highly adept Fund Manager handling an MF from a respectable Asset Management Company (AMC) can do little to prevent this downward slide.
Business Sector
The business sector is worst hit when a scam or fraud hit bank suspends or stops operations. Companies that hold accounts in the scam-hit bank are affected since they might be unable to operate their accounts for regular transactions.
Hence, they’re unable to pay suppliers or receive money from customers unless they have secondary Current Account at some other bank.
As a result, a business might find itself unable to pay salaries or even rent for their offices or other facilities.
If we look at the broad picture, a bank scam or fraud affects the entire Indian society directly or indirectly.
How? Continue reading. I’ll show you with facts and figures how bank scams affect us.
Scams & Frauds Affecting Banks in India
If you think that frauds and scams are rare in India and happen occasionally, think again. Here’s why.
As many as 53,334 frauds hit banks in India from Financial Year (FY) 2009-2010 to FY 2018-2019, says the regulator, Reserve Bank of India. Banks in India lost whopping Rs.2.05 trillion due to these frauds and scams.
Major Public Sector Undertaking or nationalized banks, private and cooperative banks as well as the new generation Small Finance Banks were affected by scams and frauds, the RBI report adds.As you would know, these are real-life stories that we read on newspapers or watch on TV. And why do they occur? Because banks in India are frequently hit by scams and frauds.
Unfortunately, scams and frauds that affect banks in India affects millions of people every year. And you could be one among those too. Unless you’re careful with your money, that is.
Just in case you don’t know how bank scams affect people’s life, here’re some details.
How Bank Scams Affects People
bank money safety
Bank scams and frauds don’t affect only their customers. Indeed, they have a negative impact on several other people as well as industries.
Bank Customers
A customer is unable to withdraw money from their accounts for daily needs or even medical emergencies. They’re unable to pay fees for educating their children or get the money they would save for buying that dream home or for marriage.
Worst hit are people that invest large amounts in Fixed Deposits just because one bank promises to pay slightly higher interest than others.
Sadly, senior citizens and retirees who invest savings of their lifetime because some bank offers half to one percent higher interest are worst hit when a bank gets hit by scam or fraud and has to suspend or close operations.
Shareholders & Other Investors
A scam directly affects the bank’s shareholders. Stock prices of the scam or fraud hit bank come tumbling down on the stock exchanges. Once reports of a scam or fraud get into the news, shareholders rush to sell off their stocks. As a result, the once profitable stock begins losing value.
It also impacts investors in Exchange Traded Funds (ETFs) and Mutual Funds (MFs). That’s because an ETF or MF could have invested in stocks of the affected bank.
In fact, lots of ETFs and MFs in India invest part of their money taken from the public on buying Mutual funds and bank stocks because they’re profitable.
When stocks of a bank start spiraling downwards, the value of your ETF and MF investments will also nosedive. Even a highly adept Fund Manager handling an MF from a respectable Asset Management Company (AMC) can do little to prevent this downward slide.
Business Sector
The business sector is worst hit when a scam or fraud hit bank suspends or stops operations. Companies that hold accounts in the scam-hit bank are affected since they might be unable to operate their accounts for regular transactions.
Hence, they’re unable to pay suppliers or receive money from customers unless they have secondary Current Account at some other bank.
As a result, a business might find itself unable to pay salaries or even rent for their offices or other facilities.
If we look at the broad picture, a bank scam or fraud affects the entire Indian society directly or indirectly.
How? Continue reading. I’ll show you with facts and figures how bank scams affect us.
Scams & Frauds Affecting Banks in India
If you think that frauds and scams are rare in India and happen occasionally, think again. Here’s why.
As many as 53,334 frauds hit banks in India from Financial Year (FY) 2009-2010 to FY 2018-2019, says the regulator, Reserve Bank of India. Banks in India lost whopping Rs.2.05 trillion due to these frauds and scams.
Major Public Sector Undertaking or nationalized banks, private and cooperative banks as well as the new generation Small Finance Banks were affected by scams and frauds, the RBI report adds.
Unfortunately, scams and frauds that affect banks in India affects millions of people every year. And you could be one among those too. Unless you’re careful with your money, that is.
Just in case you don’t know how bank scams affect people’s life, here’re some details.
How Bank Scams Affects People
bank money safety
Bank scams and frauds don’t affect only their customers. Indeed, they have a negative impact on several other people as well as industries.
Bank Customers
A customer is unable to withdraw money from their accounts for daily needs or even medical emergencies. They’re unable to pay fees for educating their children or get the money they would save for buying that dream home or for marriage.
Worst hit are people that invest large amounts in Fixed Deposits just because one bank promises to pay slightly higher interest than others.
Sadly, senior citizens and retirees who invest savings of their lifetime because some bank offers half to one percent higher interest are worst hit when a bank gets hit by scam or fraud and has to suspend or close operations.
Shareholders & Other Investors
A scam directly affects the bank’s shareholders. Stock prices of the scam or fraud hit bank come tumbling down on the stock exchanges. Once reports of a scam or fraud get into the news, shareholders rush to sell off their stocks. As a result, the once profitable stock begins losing value.
It also impacts investors in Exchange Traded Funds (ETFs) and Mutual Funds (MFs). That’s because an ETF or MF could have invested in stocks of the affected bank.
In fact, lots of ETFs and MFs in India invest part of their money taken from the public on buying Mutual funds and bank stocks because they’re profitable.
When stocks of a bank start spiraling downwards, the value of your ETF and MF investments will also nosedive. Even a highly adept Fund Manager handling an MF from a respectable Asset Management Company (AMC) can do little to prevent this downward slide.
Business Sector
The business sector is worst hit when a scam or fraud hit bank suspends or stops operations. Companies that hold accounts in the scam-hit bank are affected since they might be unable to operate their accounts for regular transactions.
Hence, they’re unable to pay suppliers or receive money from customers unless they have secondary Current Account at some other bank.
As a result, a business might find itself unable to pay salaries or even rent for their offices or other facilities.
If we look at the broad picture, a bank scam or fraud affects the entire Indian society directly or indirectly.
How? Continue reading. I’ll show you with facts and figures how bank scams affect us.
Scams & Frauds Affecting Banks in India
If you think that frauds and scams are rare in India and happen occasionally, think again. Here’s why.
As many as 53,334 frauds hit banks in India from Financial Year (FY) 2009-2010 to FY 2018-2019, says the regulator, Reserve Bank of India. Banks in India lost whopping Rs.2.05 trillion due to these frauds and scams.
Major Public Sector Undertaking or nationalized banks, private and cooperative banks as well as the new generation Small Finance Banks were affected by scams and frauds, the RBI report adds.As you would know, these are real-life stories that we read on newspapers or watch on TV. And why do they occur? Because banks in India are frequently hit by scams and frauds.
Unfortunately, scams and frauds that affect banks in India affects millions of people every year. And you could be one among those too. Unless you’re careful with your money, that is.
Just in case you don’t know how bank scams affect people’s life, here’re some details.
How Bank Scams Affects People
bank money safety
Bank scams and frauds don’t affect only their customers. Indeed, they have a negative impact on several other people as well as industries.
Bank Customers
A customer is unable to withdraw money from their accounts for daily needs or even medical emergencies. They’re unable to pay fees for educating their children or get the money they would save for buying that dream home or for marriage.
Worst hit are people that invest large amounts in Fixed Deposits just because one bank promises to pay slightly higher interest than others.
Sadly, senior citizens and retirees who invest savings of their lifetime because some bank offers half to one percent higher interest are worst hit when a bank gets hit by scam or fraud and has to suspend or close operations.
Shareholders & Other Investors
A scam directly affects the bank’s shareholders. Stock prices of the scam or fraud hit bank come tumbling down on the stock exchanges. Once reports of a scam or fraud get into the news, shareholders rush to sell off their stocks. As a result, the once profitable stock begins losing value.
It also impacts investors in Exchange Traded Funds (ETFs) and Mutual Funds (MFs). That’s because an ETF or MF could have invested in stocks of the affected bank.
In fact, lots of ETFs and MFs in India invest part of their money taken from the public on buying Mutual funds and bank stocks because they’re profitable.
When stocks of a bank start spiraling downwards, the value of your ETF and MF investments will also nosedive. Even a highly adept Fund Manager handling an MF from a respectable Asset Management Company (AMC) can do little to prevent this downward slide.
Business Sector
The business sector is worst hit when a scam or fraud hit bank suspends or stops operations. Companies that hold accounts in the scam-hit bank are affected since they might be unable to operate their accounts for regular transactions.
Hence, they’re unable to pay suppliers or receive money from customers unless they have secondary Current Account at some other bank.
As a result, a business might find itself unable to pay salaries or even rent for their offices or other facilities.
If we look at the broad picture, a bank scam or fraud affects the entire Indian society directly or indirectly.
How? Continue reading. I’ll show you with facts and figures how bank scams affect us.
Scams & Frauds Affecting Banks in India
If you think that frauds and scams are rare in India and happen occasionally, think again. Here’s why.
As many as 53,334 frauds hit banks in India from Financial Year (FY) 2009-2010 to FY 2018-2019, says the regulator, Reserve Bank of India. Banks in India lost whopping Rs.2.05 trillion due to these frauds and scams.
Major Public Sector Undertaking or nationalized banks, private and cooperative banks as well as the new generation Small Finance Banks were affected by scams and frauds, the RBI report adds.
