ISSN

2321-5763 (Online)
0976-495X (Print)


Author(s): Tejinder Singh, Nitin Pathak

Email(s): rednijetchd@gmail.com

DOI: 10.52711/2321-5763.2022.00019   

Address: Tejinder Singh, Nitin Pathak*
University School of Business, Department of Commerce, Chandigarh University, Gharuan, Mohali - Punjab 140413, India.
*Corresponding Author

Published In:   Volume - 13,      Issue - 2,     Year - 2022


ABSTRACT:
India has a daunting challenge of keeping its financial system intact from the emerging signs of impending global crisis. When it comes to the BFSI domain (banking, financial services, insurance), the coordination between regulatory and independent bodies in sharing the financial intelligence is crucial. FIU-IND is an independent body under Finance Minister which work in close cooperation with Reserve Bank of India. This paper pertains to a case related to Axis Bank Ltd, India’s third largest private sector bank wherein heavy penalties were imposed on it on account of the deficiencies in the operational processes followed by the bank. The role of FIU-IND is laudable where the authority has highlighted the irresponsible behaviour of the bank and set a benchmark for others for complying the provisions as per Basel III. Basel III is an internationally agreed set of measures developed by the Basel Committee on Banking Supervision due to the emergence of financial crisis during the 2007-09 period. Basel III norms play a crucial role in strengthening the regulation, supervision and risk management of banks at a global level. Banks and financial institutions (FIs) in India need to comply with defined processes for customer identification while establishing a relationship like opening of accounts and for keeping a regular watch on the transactions which are of suspicious nature. These are known as KYC (Know Your Customer) guidelines. Reserve Bank of India through its Master Circular on Know Your Customer (KYC) norms dated July 1,2015 under PMLA (Prevention of Money Laundering Act), 2002 has revisited KYC guidelines. The term "Officially Valid Documents" (OVD) has been introduced which can be a passport, the driving license, the Permanent Account Number (PAN) Card, the Voter's Identity Card issued by the Election Commission of India, Job card issued by NREGA. All these documents are photo identity proofs and have been introduced as part of KYC in order to keep a check on money laundering transactions.


Cite this article:
Tejinder Singh, Nitin Pathak. Non-Adherence to Operational Risk Management Guidelines under Basel Committee on Banking Supervision Norms. Asian Journal of Management. 2022;13(2):107-9. doi: 10.52711/2321-5763.2022.00019

Cite(Electronic):
Tejinder Singh, Nitin Pathak. Non-Adherence to Operational Risk Management Guidelines under Basel Committee on Banking Supervision Norms. Asian Journal of Management. 2022;13(2):107-9. doi: 10.52711/2321-5763.2022.00019   Available on: https://ajmjournal.com/AbstractView.aspx?PID=2022-13-2-1


DECLARATION AND REFERENCES:
1.    Availability of data and material: The data sets generated and/or analyzed during the current study are available in the link https://fiuindia.gov.in/pdfs/judgements/AxisBank_4_2016.pdf
2.    Bhasin (2015) European Journal of Business and Social Sciences, Vol. 4, No. 07, October 2015. P.P. 1-12
3.    Ziegenfuss, D.E. (1996). State and Local Government Fraud Survey for 1995. Managerial Auditing Journal, Vol. 9, November, p.49.
4.    Willson, R. (2006). Understanding the Offender/Environment Dynamics for Computer Crimes. Information Technology and People, 19(2), 170-186
5.    Wells, J. T. (2005). New Approaches to Fraud Deterrence, The Chartered Accountant, May, The Institute of Chartered Accountants of India, New Delhi, 1453-1455.
6.    Soni, R.R. and Soni, N. (2013). An Investigative Study of Banking Cyber Frauds with Special Reference to Private and Public Sector Banks, Research Journal of Management Sciences, 2(7), 22-27 July.
7.    Singh, M.K. (2005). Bank Frauds—What Every Banker Needs to Know, IBA Bulletin, September, 3-7
8.    Siddique, M.I. and Rehman, S. (2011). Impact of Electronic Crime in Indian Banking Sector: an overview, International Journal of Business and Information Technology, 1(2), September, 159-164
9.    Pan, S. (2015). An Overview of Indian Banking Industry, International Journal of Management and Social Science Research, Vol. 4, No. 5, May, 67-71.
10.    Khanna, A. and Arora, B. (2009). A Study to Investigate the Reasons for Bank Frauds in Indian Banking Industry, Int. Journal of Business Science and Applied Management, Vol. 4, Issue 3, 1-21.
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16.    Ziegenfuss, D.E. (1996). State and Local Government Fraud Survey for 1995. Managerial Auditing Journal, Vol. 9, November, p.49
17.    Siddique, M.I. and Rehman, S. (2011). Impact of Electronic Crime in Indian Banking Sector: an overview, International Journal of Business and Information Technology, 1(2), September, 159-164.
18.    Pasricha, P. and Mehrotra, S. (2014). Electronic Crime in Indian Banking, Sai Om Journal of Commerce and Management, 1(11), November.
19.    Mueller, K. (2015). How technology is shaping the fight against fraud? 25 February. Available at www.inc.com/keithmueller/technology-shaping-the-fight-of-fraud-in2015.html. 1-6
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