Study On Preventive Measures Adopted by Cooperative Banks to Control Financial Irregularities

Abstract

Cooperative banks are vital for providing banking services to local communities, small traders, farmers, students, and salaried individuals. However, as banking operations grow and financial transactions increase, the risk of financial issues has also risen. Problems like weak internal controls, a lack of transparency, procedural mistakes, and fraud can harm the reputation and stability of cooperative banks. Because of this, it is crucial for these banks to adopt effective measures to maintain financial discipline and protect their customers' interests. This study looks at the measures that cooperative banks use to prevent financial irregularities. The study relies on primary data gathered through structured questionnaires, along with secondary data from journals and research papers. The research emphasizes on customer awareness, perceptions towards transparency, internal control systems, audit practices, and overall trust in cooperative banks. The results show that most respondents are moderately to highly aware of preventive measures. The study concludes that preventive measures positively affect customer trust and confidence, although there is still a need to improve awareness programs and transparency.