• Mani Bhushan Kumar

A strong and stable financial sector is important for any country development as it helps in mobilizing resources to investment. It also helps in shaping the monetary policy of country which is important for economic development of a country. Banks in any country are very important as they work as a medium to mobilise resources from surplus sector to deficit sectors. Banks helps in shaping the economic development of any country when regulated efficiently. Indian economy is one of the fastest growing economies of present time. India is home of 1.4 billion people and 80% of population above 15 years have bank account. For economic development of India, Government of India and Reserve bank of India as a regulator played a commendable role in increasing the penetration of banking sector. Indian banking sector is a mix of schedule Public sector banks (12), schedule private sector banks (21),schedule small finance banks(12),schedule payment banks(4),schedule regional rural banks(43),schedule foreign banks(45).Banks in India as an important player of economic development of country face different type of risks which can be broadly classified in Market risk, credit risk and operational risk. Our study was focused on the operational risk faced by banking sector, for this 10 banks were studied which included 6 public sector banks and 4 private sector banks to make it convenient. All the selected banks annual reports were studied along with the Reserve bank of India published data on banking sectors was studied to find out the operational risk issues faced by Indian banks. Also, a primary study was done to find out the awareness and guidance about present operational risk issues and emerging operational risk issues. This study showed that Indian banks at present time are facing biggest problem in fraud besides that customer complain data showed that most of the complaint are related to the digital payment mode as more and more people are shifting from the physical payment to digital payment mode due to the convenience and the experience gained in the COVID time which showed the importance of digital payment. Also, with the penalty-imposed data it is found that banks need to strictly follow the compliance issues which are laid down by the regulator. The study also found that banks at present and in future going to face issues related to cybersecurity, IT disruption, climate risk any many more emerging risk which need to be studied and prepared with right policy and process mix.

Operational Risk, Fraud Risk, Emerging Risk

"A study on Operational risk Management in Indian Banks", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.10, Issue 2, page no.b404-b427, February-2023, Available :http://www.jetir.org/papers/JETIR2302156.pdf

"A study on Operational risk Management in Indian Banks", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.10, Issue 2, page no. ppb404-b427, February-2023, Available at : http://www.jetir.org/papers/JETIR2302156.pdf