Dy Governor of RBI Mr. S. S. Mundra who also worked in various responsible posts in several banks for decades before joining RBI as deputy Governor says in an interview that banking channels are being used for money laundering and RBI has been continuously and consistently keeping watch on each important activities . It may be possible that they are keeping watch on it, they have been tracking transaction valued more than Rs10 lacs since long, they are getting periodical returns on suspicious transaction , they are having quarterly KYC compliance certificates from each bank ,they are getting statistics on actual exports , imports and actual inward or outward remittances and similarly many control returns.
But it is undoubtedly true that they, RBI officials or custom officials or officials of Ministry of Finance or Ministry of external affairs, or Ministry of Home, are simply watching and getting periodical returns on various activities , but they are not actively taking corrective and punitive action against erring bankers for some reason or the other and neither are they interested to take action .
We have come across several instances of bribe led lending, several cases of KYC violation revealed in the past and also through Cobra operation in recent past , fake and inflated lending revealed during various audit reports ,we have come across fake exports and fake imports , scam in cash transaction detected a few ago in one of bank at Javeri Bazar Mumbai when RBI has failed to perform its duty and similar many exposures . One after scam gets light and then vanishes in dark cloud of manipulating masters in banks or in political circle. It is proved several times. Actions after each event is promised, committees are formed, inspections are carried out, but none of culprits is really punished and this is why crime goes on increasing .
Everyone in power want to remain in good book of evil doers so that they may be awarded in some way or the other. Powerful business houses and powerful politicians manage promotions and transfers of such manipulators and corrupt officials in all departments including banks and this is a well established culture
Banks have accumulated bad debts and stressed assets as much as Rs.10 lac crore, but RBI could do nothing to stop its growth quarter after quarter and neither could it nip in the bud or punish any top officials of banks or stop politicians who have been found to be indulged in ill-motivated acts in nexus with bank officials.
RBI could not ensure KYC compliance despite the fact that they are making so called efforts for decades. Cobra post exposed various fraudulent activities of banks in recent past. RBI did nothing to punish the culprits and neither could it take any effective step to stop or at least ensure reduction in cases of non-compliance to KYC norms.
Volume and value of loss caused due to fraud in banking operations and lending by banks are on continuous rise year after year. RBI could do nothing to bring fraud under control. RBI never punished the real culprit and tried to send a message to banking community as well as political community to stop misuse of powers by bankers and politicians.
Misuse of power by top officials in recruitment and in promotion of officers from
one scale to other is very common and continuing for last three decades in the name of banking reformation. RBI could do nothing to stop it which has resulted in growth of irregularities of several nature . Most of good officials have become indifferent to evil activities and keep them aloof from all promotion processes. Promotion given to inexperienced officers and then such immature officers are made Branch Head or Regional Head of Bank Head .Lack of knowledge also add fuel to fire. Bank staff in general are loyal to their bosses and not to their bank. RBI could do nothing to bring about real change in attitude, culture and approach of bankers.
Unethical waiver of bad loans, unwarranted sacrifice of interest and principal loan of bad borrowers in compromise settlement by corrupt bankers could not be stopped or reduced. Evil ways and means are used to take over business by one public sector bank from another banks in public sector is very common by offer of concession in interest rate or processing charge is very common . RBI could not monitor it or control it or stop misuse of power by bankers for self interest in the name of achieving set targets.
Banks are distributing incentives and facilities to bad staff , bad borrowers and bad depositors, bad importers and bad exporters which result in money laundering and it has been going on for decades despite Cobra revelation a few years ago. RBI could do nothing to stop money laundering despite issuance of several guidelines.
RBI simply issues guidelines to public sector banks and completes its duty by getting a certificate of compliance from each bank without going for random check or punishing to officers who submit false and fabricated certificates .
Black money is sent to foreign banks through banking channel only and it is not a new phenomenon. Banking routes are used to carry out inflated import or reduced invoice value of export to remit black money to foreign banks and this culture has been continuing for decades . All these evil transactions are well known to RBI and all politicians . But none of RBI or politicians really want to curb black money or corruption in bank or misuse of banks by politicians.
Role of Chartered Accountants in India is open secret. It is they who fabricate financial data and prepare attractive balance sheets every year to suit the requirement of bankers for sanction of a loan. None of CAs who submit false and fabricated balance sheet to banks has ever been punished .
It is CAs who help business man in evasion of tax and creation of black money and then promote culture of money laundering to hide black money so created . If tax officials become honest and stop working in nexus with greedy CAs , greedy politicians , ministers and greedy bankers, there is no doubt in it that none of business men will be able to create black money or indulge in money laundering.
Every person who buys or sell house in India knows very well that there is a great role of black money in such transaction and this bitter truth is very well known to government officials , ministers and politicians in general. But no concrete step has been taken during last four to five decades of bank nationalisation.
Majority of Sub-registrars , Income tax officials , builders in India are crorepati and billionaire and have huge unaccounted money , but who will stop it . Birds of same feather flock together and there is always a deep rooted understanding and good relations among all corrupt officials and politicians.
When protectors and saviours become destructors and looters, we should not expect any improvement in quality of bank lending or any reduction in money laundering or bank fraud or creation of black money . It is of no use in shedding Crocodile tears after each exposure.
Suspected black money much less than Rs 6,100 crore: Bank of Baroda -Economic Times
Amid investigations into the allegations of black money transfers, state-owned Bank of Baroda today said the Rs 6,100 crore remittance amount being mentioned is exaggerated and the actual amount involved is much less that.
BoB also said that 90 per cent of the funds came from 30 other banks, while only 10 per cent were received as cash at the its branch in New Delhi.
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http://economictimes.indiatimes.com/articleshow/49320859.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
Money moved to Hong Kong: CBI, ED search BoB branch for 6K cr ‘illegal transfer’-The Indian Express
CBI conducts 50 more raids over Bank of Baroda fraud-Times of India
NEW DELHI: The CBI on Sunday continued its raids in connection with the alleged black money transfer of Rs 6,172 crore from Bank of Baroda to Hong Kong. CBI officials said 50 locations belonging to private companies, on whose name accounts were opened in the Ashok Vihar branch of Bank of Baroda to make forex remittances, were raided.
CBI sources said most of these companies had given fake addresses to open accounts and bank officials didn't bother to conduct any verification.
Agency officials are also questioning some suspects who allegedly connived with BoB officials to facilitate the transfers, which took place over the last one year.
The transfers were made to certain companies, sometimes 4-5 times a day in several crores, on the pretext of payments for import of dry fruits which never happened, said sources.
CBI officials said some suspects have been identified and they are being questioned.
CBI has registered a case under Section 120-B (criminal conspiracy) read with 420 (cheating) of IPC and Section 13(2) read with 13(1)(d) of Prevention of Corruption Act, 1988 against 59 current account holders and unknown bank officials and private persons on a complaint from Bank of Baroda.
The Enforcement Directorate has also registered a money laundering case and carried out searches in this connection.
The bank had carried out an internal probe after an audit red flagged nearly 8,000 transactions done from its Ashok Vihar branch here, CBI sources said.
Officials said the account holders who were allegedly sending these payments to Hong Kong had claimed that these were advances for imports of cashew, rice etc whereas no such imports ever took place.
Sources said these remittances were sent by splitting them into amounts below $1 lakh to avoid automatic detection by software used by banks to alert them about such transactions.
These 59 current accounts were opened in the name of companies, giving wrong addresses, then cash worth crores was deposited over a period, sources said. Later, the bank was asked to make the payments as advances for the purported imports, sources added.
CBI sources said most of these companies had given fake addresses to open accounts and bank officials didn't bother to conduct any verification.
Agency officials are also questioning some suspects who allegedly connived with BoB officials to facilitate the transfers, which took place over the last one year.
The transfers were made to certain companies, sometimes 4-5 times a day in several crores, on the pretext of payments for import of dry fruits which never happened, said sources.
CBI officials said some suspects have been identified and they are being questioned.
CBI has registered a case under Section 120-B (criminal conspiracy) read with 420 (cheating) of IPC and Section 13(2) read with 13(1)(d) of Prevention of Corruption Act, 1988 against 59 current account holders and unknown bank officials and private persons on a complaint from Bank of Baroda.
The Enforcement Directorate has also registered a money laundering case and carried out searches in this connection.
The bank had carried out an internal probe after an audit red flagged nearly 8,000 transactions done from its Ashok Vihar branch here, CBI sources said.
Officials said the account holders who were allegedly sending these payments to Hong Kong had claimed that these were advances for imports of cashew, rice etc whereas no such imports ever took place.
Sources said these remittances were sent by splitting them into amounts below $1 lakh to avoid automatic detection by software used by banks to alert them about such transactions.
These 59 current accounts were opened in the name of companies, giving wrong addresses, then cash worth crores was deposited over a period, sources said. Later, the bank was asked to make the payments as advances for the purported imports, sources added.
http://timesofindia.indiatimes.com/india/CBI-conducts-50-more-raids-over-Bank-of-Baroda-fraud/articleshow/49316208.cms
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