Banking system in the modern times have become the backbone of any economy and the need for quality banking with robust risk management has been the concern of not just economists but also the legislators. One of the biggest problems in recent times has been that of Banking Frauds, both internal and external, and many laws and regulations have been enacted. Fraud has been broadly defined in various laws to include deliberate acts to cause either unlawful gain to oneself or unlawful loss to another. However, banking fraud has not been specifically defined, resulting in difficulties at the enforcement level, due to the multitude of activities that may be encompassed within its ambit.