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Last updated: 27 Feb, 2018  

Rupee.9.Thmb.jpg India's biggest bank fraud

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Bikky Khosla | 27 Feb, 2018

The banker-borrower nexus is not new to India, but the current episode, involving a high-profile businessmen and by far the biggest ever banking scam in the country's history, shows that the nexus is far deeper than we have ever imagined. The sole culprit of the Rs 12,600 crore scam has succeeded in giving the authorities a slip, and there is little doubt it will be not at all easy to bring the offender back to the country. According to a recent RTI response from the MEA, India's extradition success rate stands only at 33 percent, and we all know the instances of failure abound.

Our public sector banks have long been struggling with NPAs, so much so that the Centre --after a series of several hardly-successful policy measures by the RBI-- finally has to come out with a massive capitalisation scheme under which a whopping amount of Rs 2.11 lakh crore --representing nearly 1.2 percent of India's GDP --is to be allocated to these banks over a period of two years. Only last month, the Finance Minister said that the money was taxpayers' money and called for responsibility from banks. So now there's a question that's worth asking—is the money being spent for no good reason?

While the government's bank recapitalisation plan was widely welcomed as a step in the right direction, experts have always pointed out that better banking governance is a must alongside such aggressive capital infusion, and now the scams, unfolding one after another, show that we are miserably lagging behind in this respect. It is surprising that PNB, the second largest public sector bank in the country, took so much time to detect the fraud. Even a three three-tier audit failed to find it out. People are now even questioning the RBI's role as banking watchdog.

These developments are dampening hopes. Public's trust in the public sector banking is dwindling. Some industry bodies have now even put forward the demand for privatisation of the public sector banks, arguing that their recapitalisation over the last decade has had little impact on improving the health of the sector. Such reactions are very natural. Now, it is time for a change. The government, the RBI and the judiciary must urgently work together to restore the Nation's faith in the public banking system.

I invite your opinions.

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Kaparthy Amar | Sun Mar 11 02:20:51 2018
The failure of judicial system is the main cause of nap in banking system. Barower dose not care to repay as he is expert in finding ways of getting asaylem by law. Defaulter is set free to repay debts in meaningless instalments even though if he is capable of repaying it.the barower should be punished by way of imprisonment and whole property should be seiged and all these should be done within a short period.insted of giving him time to enjoy all the money barowed and finally left with nothing.

India's biggest bank fraud
Pappachan | Tue Mar 6 16:08:33 2018
such peoples are nations enemy,Indian army must treat them as terrorist,this crime is equal as money laundering.

India's biggest bank fraud
Ram | Sat Mar 3 08:30:15 2018
It is a pity that even 60 years after bank nationalization, there is no internal control system or if it is there it is not adequate to prevent or detect the fraud in time before the fugutives run away with the public money. It does not call for high tech expertise or skill to discipline the high profile borrower beyond say 100 crores or to catch those who act in collusion to defraud public money.After a few months all the newspaper headlines and the noise now you hear about Nirav Modi and his empire will fade away in a similar way how some bureaucrats in Chennai managed to get Crores in 2000 rupee notes when the common man had to wait in long queues to exchange banned notes in 2016. Nobody is there to ask why political parties do not have to pay income tax

Why our PM is silent? what happened to his promises?
BARN DAVID | Fri Mar 2 06:51:39 2018
We are used to the rhetoric and scams. we as Indians have selective amnesia. We trusted our PM so much, that we expected the Best from Him and not to repeat the mistakes of the Congress. All has gone with the wind. 100 days was not sufficient to bring back the stashed money from abroad. Interestingly it is the other way round now. Money is being flown out along with the perpetrator. Our PM's silence is intriguing. Still hope is not lost. Stop PSB as a tool to loot the common man's money by introducing so many YOJANAS. Appoint the Best performing Private sector Bank's directors in PSBs and a strong Vigilance to deter the possible loot by a few, who always have the Godfather in the Govt. Otherwise how can the Looters scoot out so easily?

India's biggest bank fraud
K.y.sawant | Thu Mar 1 13:12:31 2018
Banks are involved in Cortes worth fraud and liberally sanctioning money to big sharks but when it comes to micro units even one lakh sanctioning becomes cumbersome .They would make the needy enterprenuer mortgage the residential house of parents if he has nothing else as guarantee.This they do against the policies and even if such small loans are guaranteed by credit guarantee funding..

Janak | Thu Mar 1 05:07:55 2018
First of all Government should ask all the banks to disclose the names of the parties who have taken huge loan amount from banks and seize the passports of the person who have taken loan. 2nd thing after taking huge loan Govt. should inquire where the loan amount is invested or our great Country's political leaders have swallow the loan amount. All the individual tax payers should be given relief by exemption in paying Income tax for next five years & recover all amount from big industrialist & political leaders who does not have any other business and penalize them publicly. All high profile Bank's officers & political leaders are playing with the sentiments of the innocent people. No law is different for common man, big industrialist or politicians. Rich are becoming more rich. Middleman is becoming more poorer. Poor peoples are there only where they are. Instead of development Central government should first investigate such fruadlent industrialist & recover all the loans & put the ceiling on loan amount where he or she is big or small industrialist. Repeat of loan should not be granted to a person unless previous loan is recovered by Bank. Further big loans should not be granted. LUC mast be cancelled. Central & State Government should have audit every bank every month & disclose the loan amounts given & name of the borrower of the loan so that there is no fraud / scam. All the passports of loan borrowers should be seized till loan amount is recovered.

M.L, Sachdeva | Thu Mar 1 02:45:47 2018
People involved in the Fraud shall be made responsible and all efforts shall be made to recover the amount. Govt reaction that Bank is only responsible for this as the fraud involves public money is also to be taken with a pinch of salt. Govt itself be held lagging in their duty to put in place the adequate effective regulations.Public Representatives are also open to question for the public property being elected by public for public good

india's biggest bank fraud
Vishal Gaur | Wed Feb 28 10:37:59 2018
Its time for regulatory bank to put forward new laws to curb these high profile frauds and minimize NPAs. Present banking laws are easily melted and used for personal interests. Government and RBI should work in direction so that laws can be made and implemented on fast track. Presently Public Banking system is miserable and should be changed immediately

PNB Scam
Ankur Jain | Wed Feb 28 10:35:50 2018
Ok, Scam has surfaced but I still confused where has the money gone. Ok from PNB to scam but from them where. Purchase against LOU from bank and sell at heavy profits against cash. So money disappeared where, isn't that should be investigated.

Re capitalization
Bajrang Bajaj | Wed Feb 28 09:55:24 2018
Do not re capatilize the bank's from public money. Rather bank's should be asked to collect NPA. If the bank's couldn't do so.They should be either close or privatised

Bank Fruads
J.C. SEKHAR | Wed Feb 28 08:36:43 2018

banking fraud
Ravi | Wed Feb 28 07:43:56 2018
i thing , first the bank officials has to be hanged till death. How can they just give public money without all the vitrification. so what i feel people who are doing fraud are not real culprit but people helping them are culprit . and all public sector bank officials are almost uncultured, they dont reply you properly they all should be sacked and bring all young and well trained staff so that banking segment will grow.

INDIA Economy
ANIL MITTAL AT DHANBAD | Wed Feb 28 07:42:16 2018
There is need of Privatisation of banks. Panel must establish to see so that no more Scams can be happened Loans must be not for rich persons but also for every citizen ;strengthening every citizen is only the way for rich and fast growing economy of INDIA Thanks for get me the opinion

India's biggest bank fraud
Ali | Wed Feb 28 06:33:03 2018
Recover it from rulinng politicians wealth, the bank employees who lend loans.

Bank fraud
Narayan Avhale | Wed Feb 28 03:48:12 2018
Few suggestions are as under... 1. Those who are guilty shall be punished to death to both banker & the barrower. 2.To locate the agent for being secrete inspection of both for procedure, repayment. But care should be taken that the agent should not be the relative of bankers or barrowers. 3. Fund utilization shall be inspected frequently. 4.All frauds are generally 100% involvement of bank employees. 5. All nationalized bank located at national boundary are fully engaged in duplicate notes collection in bank basically by bank employee. Needs to investing the matter. 6.If anybody found in such scam, shall be terminated from services without time delay. And all his property belongs to his/ her close relatives shall be captured. 7. For a single duplicate note, the accountant should be responsible & weekly check must be there and if found shall be punished. 8. For this shall amend all the existing laws. 9.Loan limit shall be controlled to certain amount. 10 If the repayment is not done by the borrower then the action against the borrower shall be taken without any delay. 11. Discipline shall be strictly followed. 12.For @ 10 years of time, We need to follow the china's & other nations some rules a)No reservation b) education to all, c)Military training d) One family one child, e)Ban on all religion holidays. f) Punishment to death for all types of crime. g) Min. 8 hours work compulsory to all citizen. h)

Bank fraud
Sanjeev | Wed Feb 28 01:32:27 2018
All the fresh capital injected in PSB's will be given away in the same way as the PNB fraud. There is no control on the crooked bank officials. India needs to start punishment like china. Call a firind squad for the concerned bank employees and the business men involved in the frauds.

my comment
Mr.Perli Giannantonio | Tue Feb 27 22:00:47 2018
I remain surprised for this serious situations into system of Bank in INDIA. My Firm am waiting to enter into a business connection with Trade India.I payment in advance the Pro-forma on your Banks with regular procedure and transaction. I am preoccupied for this fraud.

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