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This article undertakes a comprehensive examination of preventive measures pertaining to corporate governance and assesses their effectiveness in mitigating financial frauds within the Indian context. Modern private sector banks were created to challenge established public sector banks. YES Bank, is a prime example. It aimed to provide superior service and uphold strong corporate governance. However, a significant financial scandal severely impacted the bank's operations, harming customers, depositors, and other parties particularly known as stakeholders. The core problem stemmed from the bank's practice of issuing substantial loans to companies with poor creditworthiness, leading to a surge in non-performing assets (NPAs) or bad debts. This excessive lending and the banks inability to meet customer withdrawal demands eroded public trust. The excessive provision of loans and default of the bank in terms of maintenance of adequate funds to the customers for withdrawal resulted in the loss of confidence on the part of customers which ultimately created the situation where customers rushed for funds from their accounts and hence RBI imposed withdrawal limits. Initial investigations pointed to a system failure of corporate governance, resulting in the arrest of key personnel on charges of fraud and money laundering.
"Corporate Governance Failure An Overview of the New Emerging Scam of a Private Sector Bank. (A case study of YES BANK)", International Journal of Science & Engineering Development Research (www.ijrti.org), ISSN:2455-2631, Vol.10, Issue 4, page no.b843-b847, April-2025, Available :http://www.ijrti.org/papers/IJRTI2504206.pdf
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2456-3315 | IMPACT FACTOR: 8.14 Calculated By Google Scholar| ESTD YEAR: 2016
An International Scholarly Open Access Journal, Peer-Reviewed, Refereed Journal Impact Factor 8.14 Calculate by Google Scholar and Semantic Scholar | AI-Powered Research Tool, Multidisciplinary, Monthly, Multilanguage Journal Indexing in All Major Database & Metadata, Citation Generator