20. In the context of advance related frauds, I wish to raise a fundamental issue for wider public debate. At what stage should the banks declare a loan account as fraud? Should diversion of funds be a basis for defining a borrowal account as fraud?
In my opinion, so long as the borrower does not dispute that he owes money to the bank, it may not be termed as “fraud”. I believe there is a good enough reason to revisit the definition of “fraud” in the banking context. Fixing of staff accountability 21. Another area demanding urgent attention of banks is fixing of staff accountability.