Page 34 - BANKING FINANCE APRIL 2017

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sulted in the fraud, and swiftness of action so as to have debits raised in their accounts of fraudulent transac-
a deterrent / demonstrative effect on others. tions needs be immediately reversed once the fraud is es-
tablished and amounts restored to the affected customers
2) Based on findings of investigation report, Functional
Department and Human Resource Management De- without delay, provided the customer is not at fault.
partment shall ensure prompt examining of ac- Conclusion:
countability and disciplinary action against concerned
"Stitch in time saves nine" - this proverb is true for banks, in
employees, as per Board Directives and CVC Guidelines.
controlling frauds. The advent of technology has changed
our lives - faster, easier and more convenient. But it has also
Measure to build Customer Confidence:
opened a plethora of fraud risks for banks. Taking adequate
Customer awareness is one of the pillars of fraud preven- steps to prevent instances of frauds and early detection of
tion. It has been seen that alert customers have enabled frauds are important aspects of risk management in banks
prevention of several frauds and in case of frauds, which for improving the efficiency.
could not be avoided, helped in bringing the culprit to book
by raising timely alerts. The bank should thus aim at con- Losses resulting from frauds are to be adequately provided
tinuously educating its customers and solicit their participa- for from the profits and hence a drain on the bank and its
tion in various preventive/detective measures. It is the duty capital. Setting out a framework and putting in place ap-
of all the groups in the bank to create fraud risk awareness propriate systems and procedures is essential in manage-
amongst their respective customers. ment of fraud risks. For this banks need come out with the
best practices in control mechanisms to eliminate the ele-
As part of individual bank's policy to deal with the custom- ments of fraud and foster the customer confidence in the
ers fairly and in fulfilling responsibility towards them, any banking system. 

Govt. to opt for ‘Buy policy’ like US
To endorse the flagship 'Make In India' programme, the government is proposing its own version of the US's Buy Ameri-
can policy through a national government procurement policy. The policy being considered involves purchases of Rs 2
trillion a year but doesn't include defence equipment.
Under the proposed policy, the central government will provide special preference to companies producing in India;
this could be in the form of a relaxation in turnover and experience conditions as well as price preference in products
and services it is buying for its own use. The purchases could range from mobile phones and computers to stationery
and medicines, and even steel or aluminium for government and railway projects.
When implemented, the scheme, which is compliant with the norms of the World Trade Organization (WTO), will
incentivise companies to manufacture in India, given the scale of government purchases. The central government es-
timates that the purchases could be around Rs2 trillion a year. That number will grow once state governments, munici-
pal bodies and government educational institutions start doing the same.
Rural- centric Fincare grown in private equity field

Fincare Business Services, a rural-centric financial inclusion platform, has raised Rs 500 crore from private equity inves-
tors TA Associates, True North, Tata Opportunities Fund and LeapFrog Investments. A number of financial institutions,
including SIDBI, Kotak Mahindra Old Mutual Life Insurance and Edelweiss Tokio Life Insurance, among others, were
also part of the funding.
Fincare is an umbrella company of firms such as Disha Microfin, Future Financial Services and Lok Management Ser-
vices. Disha Microfin has received in-principle approval from the RBI to operate as a small finance bank. "Today's an-
nouncement will enable us to continue to build the infrastructure required to accelerate our growth in line with our
mission to facilitate a lifetime of progress at the base of the pyramid through financial and social inclusion," said Rajeev
Yadav, Group CEO, Fincare.

34 | 2017 | APRIL | BANKING FINANCE

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