UNETHICAL BANKING PRACTICES:

 There are many faces of unethical practices and the prime one is the corruption, where public office is used for personal gains. They  stated that corrupt actions is not only restricted to bribery, extortion, influence peddling, nepotism, fraud, embezzlement and abuse of power.They avowed that in small organisations the prime reason for unethical practices is its size and the struggle to survive within the competitive market.

              A number of the big corporate houses which are wearing an ideal mask are actually making money by engaging into unethical practices and thereby fulfilling their core objective of maximizing shareholder’s value. 

If we think about that there is lots of corruption due to some corrupted persons who don't follow the rules  and  regulations of bank.

       It has been observed that there are some employees who deliberately carry out unethical behavior and practices.The study identified some of these unethical activities, viz; 

· Resorting to dishonesty, trickery or deception. 

· Distortion of facts to mislead or confuse. 

· Manipulating customers emotionally by exploiting their vulnerabilities. 

· Greed to accumulate excessive profit. 

· Creation of false documents to show increased profits. 

· Avoiding penalty or compensation for unlawful act. 

· Lack of transparency and resistance to investigation. 

· Sexual discrimination and gender biasness. 

· Excessive work load to the employees by giving them unreachable targets.

· No payment or marginal payment for over-time. 

        CURRENT ACCOUNT: 

The following types are likely to be committed in case of current accounts. 

· Opening of fake account in the names of limited companies or firms by unauthorized 

persons; 

· Presentation and payment of cheques bearing forged signatures; 

· Breach of trust by the employees of the companies or firms possessing cheque leaves 

duly signed by the authorized signatures; and 

· Changing of the amount of the cheques in a fraudulent way and getting it paid at the counter or another bank.

It is also observed that even State Bank of India which is the most respected bank 

in India has being the leading public sector bank engaging in huge amount of frauds. 

HDFC bank presently has appointed accounting and audit firm Deloitte Touche India to carry out an independent forensic enquiry into allegations of some 

of its officials facilitating money laundering activities. The bank has also appointed 

A & B & C and Co to examine the breaches, if any, of 

the bank's Code of Conduct & Ethical Standards, conducted by any bank officials. 

               Observing ethical practices helps in building an honest reputation ensuring smooth running of the organization. 

                 · INVESTORS: Ensuring safety of their investment and timely payment of 

interest. 

· EMPLOYEES: Adhering to non-discriminating policy by providing them with an equitable opportunity for promotion & training,ensuring safe & hygiene working evironment and regular payments of salaries.

· CUSTOMER: Dealing with them in a polite and impartial manner and also 

maintaining transparency about the banking products/services. 

· COMPETITION: Deceitful tactics, competitor bashing and fraudulent

methods should be avoided while handling competitors. 

· GOVERNMENT AND REGULATORY BODIES: Rules and regulations 

regarding banking activities and unlawful activities like corruption and bribing 

should be adhered to. 

· ENVIRONMENT: The banks should positively contribute towards the 

ecology and must not provide finance to those organisations who have  Observing ethical practices helps in building an honest reputation ensuring smooth running of the organization.