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  • Category: Miscellaneous

    Why bank rules differ for the public and fraudsters?

    When the country's banks are reeling under non performing assets the last you want to hear is another bad news that would be a blow to the banks that are staggering with huge support from the Government as part of the bailout plans.

    Today Punjab National Bank was in the news with a fraud of Rs 11,334 crores detected at a Mumbai Branch. This is a big blow as the bank already has lower than expected earnings in the last quarter. Today alone the loss of the share investors amounts to Rs 3844 crores. Furthermore, there could be other banks involved. Ultimately, the bail-out plans ( tax-payer's money) will have to be increased.

    For the common man, we need hundreds of documents, many layers of scrutiny to get a simple loan of few thousand to a few lakhs, we are hounded for our EMI payments. Yet such mega crore frauds happen at the same banks. Why are the rules different? Who is accountable? Can we attach the wealth of all involved to recover the public money?
  • #626366
    There is a proverb in Telugu which means to catch the thief in our house members is very difficult. The bank rules will be same for all the people. But the interpretation of the rule by the big bosses of the bank who makes the rule will change as required. In India generally, rule makers are the rule breakers.
    The way in which the things are happening, it appears there is no safety for the money we keep I bank. If the government denies the funding to banks where from they will bring the money. Ultimately the loss is to the people who are keeping their money in the bank or the taxpayers. This is the state of affairs in our country.
    These banks should not have different approaches with different people. They should have tough rules as the amounts increase and the collateral security system should be implemented strictly. Otherwise we will have many issues like this.

    always confident

  • #626372
    One thing what we understand from the on going bank under hand dealings that, the more the big fraud amount , the fraudsters are going scott free and lesser the loan amount the bank would use all its force and laws to impose on common man who cannot run away but to pay by hook and crook even at the cost of beg borrow and steal. When we want to apply for bank loans, the bank lawyer would scrutiny every paper and then give the legal opinion which is final and often this so called legal opinion is fudged and managed. And in the case of big frauds, who is giving legal opinion to banks and which officer is responsible for big sanctions.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #626373
    It is not easy to do fraud until some employee is passing information or helping the outside person to execute such frauds.

    Unfortunately, the governance in this area is very poor. All the unaccountable money is going under the head NPA and the bank management is giving one or more excuses to show their inability to recover these bad loans. The case of Vijay Mallaya is well known to us. He is not in a position to repay. Only thing Govt can do is jail him. That is Ok but from where that money will come back to the banks which have financed him.

    Knowledge is power.

  • #626393
    I presume that most of us are aware about something known as 'corruption'. The funny thing is that, despite knowing, we pretend to not know about it and go on discussing the issues without any fruitful result.

    Rules are same for all. However, the common man deals in smaller amounts which is insufficient to yield adequate bribe to fill the belly of all people involved including senior officers of the banks empowered to take big decisions. On the other hand, the companies which deal in thousands of crore of rupees are able to pay sufficiently to the corrupt officials to buy their morale.

    Let us encourage each other in sharing knowledge.

  • #626394
    The worst part of our Indian rules on any matter especially banking sector is such vulnerable that there is always a chance to escape from the notice after fraud committed and for that the officers would themselves suggest ways and means to get rid off. That is why when Harshad Mehta was arrested during Global Trust Bank case , he simply said that he has used the system failure facility of the bank and got benefited to which the government nor the apex bank had no explanation. And poor routine customers are harassed to maintain minimum balance or otherwise fines etc rules as if our banks gone bankrupt. Hell with the system.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #626530
    Today, there is a report of a fraud of Rs 12.5 crores belonging to KIADB (a Government body) diverted from Canara Bank. Half the funds deposited by the KIADB were diverted to other accounts and withdrawn.

    Can this happen without the collusion of the bank authorities?

  • #626533
    I still don't understand why Government is still not privatising the banks. By keeping a single bank under its control for distributing loans to agriculture sector, why can't it relinquish its control from all other banks. It is the tax payers money, the Government is using to recapitalise the banks and the Government banks are keeping on making financial frauds. I don't understand the logic in holding the banks under its control.
    Even if small farmers default their loans, it won't be a big issue. Anyhow Government is using its election gimmick of waiving the agricultural loans.

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