Page 40 - Banking Finance May 2020

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monitoring team is to keep view on transaction taking Creating and employee awareness and training about
place and to observe whether any suspicious the various types of fraud and how to detect the frauds
transaction is going out or not as per the banking norms. and their prevention ways. It is possible through proper
If any such transaction is found, then necessary action mechanism and training program.
should be taken against that account holder.
A strong KYC (know your customer) process is the
Every banking institute must maintain a strong "Fraud backbone of any fraud prevention activity.
Prevention team". The role of Fraud Prevention team
is to keep trace out the fraud activity and preventing All banks must have separate Department to manage
that from fraud before it is actually performed. frauds, their role is monitoring, investigation, reporting
and awareness creation.
Banks need to have dedicated email IDs for customers
to inform any fraudulent activity that they may notice.
A dedicated team can be created to reply to customer Conclusion
queries and concerns through the above email IDs. The banking today is re-defined and re-engineered with the
use of Information Technology and it is sure that the future
Phone banking officers and branch staff should also be
trained on response to customers' queries and concerns of banking will offer more sophisticated services to the
customers with the continuous product and process
on frauds.
innovations. As electronic payment volumes grow, and more
Banking organization should set up a fraud helpline for banking activity extends to the web and mobile devices, the
customers and employees to enable them to report ability to detect and prevent financial crime and reduce
suspected frauds and seek information on fraud
prevention. By doing this, banks can have more than fraud risk exposure across the enterprise has become critical.
one avenue for early reporting and detection of frauds. Financial institution faces ever -increasing challenges around
fraud. Due to the advancement of technology, the fraudsters
Creation of fraud awareness among the customers and also uses technology to execute fraud in new and innovative
staff. Awareness on how to prevent and detect frauds ways. The Banks institute must develop strong fraud risk
is the basis of fraud management. Banks need to adopt
management and fraud controlling mechanisms for the
various measures to create awareness amongst staff development of Banking services and customer trust.
and customers.
All banks should have a dedicated team to take care of References:
the security of the physical infrastructure. This team
rbi.org.in
should conduct regular security audits of various offices
to check for deviations/ lapses. It is the responsibility of https://www.rbi.org.in/scripts/
this team to ensure that physical assets and data copied bs_viewbulletin.aspx?id=14351
on Magnetic/optical media do not go out of the offices https://www.cisomag.com/around-50000-cyber-frauds-
of the bank without authorization. reported-in-india-during-2018-19-rbi

Mutual funds file drafts for new offerings

Mutual Fund houses have filed draft documents for 10 new schemes across categories since May 21. Industry participants
attribute the newfound confidence to the ‘recovery’ in the market since the last one month. Axis Mutual Fund, the
first one to get back to the arena, has filed for four new schemes, which include two international funds, an Exchange
Traded Fund (ETF), and Fixed Maturity Plan (FMP). Chandresh Kumar Nigam, Director and CEO, Axis Mutual Fund, says
that the fund house is taking this opportunity to build a long-term initiative in global investing. “These newly filed funds
are a part of our approach of systematically broadening our global products suite. We already have two funds that
have part allocations (up to 30%) in global stocks and the balance allocation in domestic stocks. These funds allow
investors a simple first entry into global investing and the funds have seen a good response in the market,” says Nigam.
Mahindra Mutual Fund filed drafts for two new fund offers. Mahindra MF is in the process of launching a focused equity
and an arbitrage fund. “We are already seeing high-quality businesses in the global context, showing recovery.

40 | 2020 | MAY | BANKING FINANCE