The banking sector plays a vital role in the economic development and financial stability of India. Over the years, the Indian banking industry has experienced significant growth due to liberalization, technological advancement, digital banking services, and financial inclusion initiatives. However, the rapid expansion of banking activities has also increased the risks of financial frauds, cybercrimes, money laundering, loan scams, and other financial irregularities. In this context, forensic accounting has emerged as an effective mechanism for detecting, investigating, and preventing financial crimes within banking institutions. The present article examines the role of forensic accounting in the Indian banking sector by analysing its significance in fraud detection, risk management, corporate governance, regulatory compliance, and cybercrime investigation. The study further highlights the major challenges faced in implementing forensic accounting practices, including shortage of skilled professionals, technological complexities, legal limitations, and high implementation costs. The article also explores the growing opportunities for forensic accounting in India due to increasing regulatory requirements, technological innovations, and rising awareness regarding financial transparency and accountability. The study concludes that forensic accounting has become an essential tool for strengthening financial governance, improving operational efficiency, reducing banking frauds, and enhancing public confidence in the Indian banking system.
Shah et al. (Thu,) studied this question.