Bank Officer Booked for Fraud

Important News of 4th July 2014

4 booked for duping coop bank of Rs7.65 lakh
Times of India
NAGPUR: Four people, including a bank's branch manager, were booked by Dhantoli police for allegedly siphoning off Rs7.65 lakh from a cooperative bank's account by making fraudulent changes in the demand draft.

Three accused have been identified as Kalam Shah, Suresh Shah and Sheetal D Goyal. "The branch manager of IDBI Bank, Laxmi Nagar branch, was also made accused as he failed to verify the amount entered on the slip and the amount mentioned on the DD," said police.

According to the complaint filed by Ashok Pimpalghare, manager of Navoday Urban Cooperative Bank, Goyal made a DD of Rs 500 from their bank on February 11, 2014. "Later, digits 7.64 were added before 500 on the DD to make it read as Rs7.65 lakh."

Police said Navoday bank has its account with IDBI Bank, Laxmi Nagar branch. Pimpalghare said the DD was submitted at IDBI Bank's Uduppi, Bangalore, branch and the cash was withdrawn from joint account of Kalam Shah and Suresh Shah in IDBI Bank, Laxmi Nagar branch, on February 25, 2014.

The fraud came to light when the tricksters made a similar attempt. On the second occasion, Goyal made a DD of Rs600 and allegedly added Rs9.74 before 600. However, this time the bank authorities noticed the change.

Pimpalghare too had started a probe in this regard and filed police complaint against Kamal Shah, 

Depositors’ body flays banks’ move to charge for ATM use by non-customers-Hindu Business Line

MUMBAI, JULY 3:  

The All India Bank Depositors’ Association (AIBDA) has panned the proposal by banks to deny customers the convenience of a maximum of five free transactions in a month at ATMs of other banks.

According to Ashok Ravat, Honorary Secretary, AIBDA, the Reserve Bank of India and the Banking Codes Standards Board of India should intervene in the interest of consumers to thwart the efforts by banks to levy charges on non-customers who transact at their ATMs.

At present, savings bank account holders can transact a maximum of five transactions free at ATMs of other banks in a month, which is inclusive of all types of transactions, financial and non-financial.

From the sixth transaction onwards, the customer is charged about ₹20 a transaction.

Ravat said the Association wants status quo with regard to the number of free ATM transactions.

To help banks recover increased costs due to the requirement to provide round-the-clock security at ATM kiosks, the Indian Banks’ Association has sought the Reserve Bank of India’s approval to impose a fee on customers in urban areas for withdrawing money from ATMs of banks in which they don’t have an account.

However, there will be no charges for transactions in semi-urban and rural areas.

Pointing out that depositors provide banks with the raw material (deposits) to conduct their business (for giving loans and making investments), Ravat said it would be unfair to levy charges on customers who conduct transactions at the ATMs of other banks.

Besides providing convenience to customers, banks have installed ATMs so that pressure on branches eases and the staff can conduct more meaningful business.

Unfair measure

Further, due to the convenience of withdrawing money anywhere and anytime, customers’ maintain higher balances in savings bank accounts.

This is beneficial for banks as these low-cost deposits not only support loan growth but also boost their margins.

If the RBI gives its assent to the IBA proposal, banks may see customers queuing up at the branches for transactions, defeating the purpose of installing ATMs.

Reacting to the proposed move, BSS Reddy, a customer with a public sector bank, said “Now, my own bank’s ATM is not conveniently located. So, I withdraw money from another bank’s ATM, which is closer home.

“If banks begin levying charges for such transactions, I may go back to old world banking, queuing up at the branch for routine banking transactions.”

According to RBI data, as at April-end 2014, there were 1,62,543 ATMs across the country and the transactions at these ATMs aggregated to ₹1,74,346 crore in April.

India should avoid fiscal slippage: World Bank-Deccan Chronicle

Mumbai: Inflation is still uncomfortably high in India and the new government should avoid fiscal slippage as it seeks to revive the economy, stated the Director of World Bank's India. The comments came after Finance Minister, Arun Jaitley warned of tough measures in his first budget on July 10, saying ‘mindless populism’ needs to be checked as India aims to boost growth.

"It's really important to underline that it (inflation) is a long-term threat to the economy," Onno Ruhl said in an interview late on Wednesday at the World Bank's New Delhi office. "I wouldn't advise higher deficits ... it is very possible to stimulate growth without letting go of the deficit."

New Prime Minister Narendra Modi faces the challenging task of reviving the economy at a time when wholesale price inflation is at a five-month high and retail inflation remains above 8 per cent.

The previous government's interim budget in February set a deficit target of 4.1 per cent of GDP for the current financial year. The gap has already hit $40 billion, or nearly half of the target for the full fiscal year that started in April. Like Ruhl, private economists expect Jaitley's maiden budget to shift the policy focus from consumption to investment and seek to broaden the government's narrow tax base.

Ruhl said implementing a proposed goods and services tax (GST) could be a game changer that would simplify India's complex array of taxes and levies and boost its growth trajectory. "It's a big-ticket item, it will unify India as a market. It will also underpin revenues," he said, adding that a GST could even help India offset the impacts of rising oil import costs or weak monsoon rains.

After Modi stormed to power in May, hopes are high that the 63-year-old pro-business leader will launch reforms, including a revamp of India's archaic labour laws, to boost manufacturing and create millions of jobs. The World Bank said in a 2014 report that India has one of the world's most rigid labour markets, where regulations often end up encouraging firms to stay small and dodge labour laws. Given that the subject is politically sensitive, India does not necessarily need a comprehensive review of labour regulations, Ruhl suggested, adding that implementation could be unworkable.

A simpler approach would be to ease hire-and-fire rules for new employees while keeping job protection in place for existing workers who would eventually resign or retire. "If one would allow companies to hire new workers on a more flexible redundancy regime it would make a big difference. You can 'grandfather' all the other workers under the existing contracts," he said.

Pro-growth reforms are vital for Modi to carry his electoral success through his five-year term. He has already warned that he would have to administer "bitter medicine" to revive an economy growing at below 5 per cent.

The World Bank last month said India will likely grow 5.5 per cent in the current fiscal year and 6.3 percent in the 2015-16 fiscal year. Ruhl said India could outperform next year's projection if Modi's government presses on with reforms.

If reforms are not passed, India also risks slipping in the World Bank's scorecard on the ease of doing business around the world. Asia's third-largest economy is ranked 134th out of 189 economies, below countries such as Zambia and Pakistan.

"If no reform, then (India) will slip because other countries do reforms," Ruhl said, referring to the rankings.