Thursday, June 17, 2021
HomeOpinionDiaryNeed regulation and structural change in financial systems – Part II

Need regulation and structural change in financial systems – Part II

Who will bell the cat? Who will conduct an impartial and transparent investigation? All around, we see decay! Institution after institution is succumbing to the political masters and money power.

Is this branch not come within the purview of RBI? In this issue what is its stand. Once in a quarter RBI conducts different types of audits by different panel of officers including Chartered Accountants. What were the reports? So the entire scan has perfectly been taken place with involvement and knowledge of the RBI top officials. Why should not investigate the then officials of RBI? Probably, the RBI the then officers might be foremost culprits. Rs 11500 crore! Hard to imagine how much it would be!! Not a small mole but a big mountain. It is a hand in glove business. That is how it is thriving. In India, the punishment for crimes does not serve as a deterrent. On the contrary it encourages the people to adopt that way of making big money in a small time and have a good time in the prison. And if they happened to be political leaders, they get a special treatment in the prison with even the facility of making nocturnal visits to the shops. If India wants to get rid of crimes, it is time that punishment was made so severe that people think twice before taking that course.

For a Rs 5,000-transaction, I do over the net, I need password, and also an OTP. I wonder how Banks disburse huge multimillion dollar loans without a reconfirmation from the unit that purported to have issued a piece of paper called LoC. Even if this was not done, at least post facto advice that they have used that piece of paper as collateral (security) should have been done! Looks very shady! Also, what if the Beneficiary Bank uses the same piece of paper multiple times? In PNB what systems and checks and control there? Can we keep our money with you at all? Credibility Zero is a compliment. Nation wants to know so seriously and a small kid is asking me that you were a Banker and tell me how can a bank be so stupid? I have no answer seriously.

The banker-borrower nexus has been blamed for problems in the banking system for years. This episode will set off fears of a nexus deeper than imagined. The RBI and investigating agencies should act speedily to restore trust in the banking system.

(The views expressed by the author in the article are his/her own.)

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