Pointing out failures of the RBI and the Centre, the banking sector has expressed that PSBs play a key role in the Indian economy that needs a strong system to expand on the growth trajectory.
As the country reels under the shock of multiple bank frauds and the potential impact of lakhs of crores of bad loans in the banking system, the All India Bank Officers’ Confederation (AIBOC) has asked the government to stop the blame game in bank frauds and instead make the Reserve Bank of India (RBI) take responsibility for introducing new systems and for failure in bank supervision.
Regulatory agencies, including the central bank, need to become more vigilant and the role of auditors needs to be probed further. Banks are already being audited multiple times and, hence, there is need for a regulatory agency to make sure that auditors are playing their due role. As the Nirav Modi-Punjab National Bank (PNB) scam unfolds, it is clear that those who were to monitor transactions failed at their job.
It must be recalled that one of the fallouts of the scandal surrounding the US energy company Enron was the closure of reputed accounting firm Arthur Andersen. In our country too, stern action must be taken against auditing agencies. At the same time, greater autonomy needs to be given to state-run banks. The issue of appointments of bank chiefs, for instance, is a key issue meant to be handled by the relatively new Banks Board Bureau. Instead, it seems to remain within the purview of the Finance Ministry. All these issues will now have to be reviewed and overhauled in light of the worsening news from banks.
The Bank Officers Confederation had earlier objected to banks being burdened with the responsibility of Aadhaar enrolment, which is now a bigger and more dangerous issue given the impunity with which bank officials have participated in fraud. However, the Bank Officers Confederation has a different take and makes some important points about the accountability of regulators and the government.
Denne historien er fra March 31, 2018-utgaven av Tehelka.
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Denne historien er fra March 31, 2018-utgaven av Tehelka.
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Why Did Ratan Tata Feel Compelled To Take Charge Again?
Did Cyrus Mistry fall victim to an ossified corporate culture or did he violate Tata Sons’ ethos and culture? MG BanGa tells the story so far.
Misguided Youths Or Trained Terrorists?
As part of a dangerous trend emerging across the world, homegrown ISIL sympathisers are willing and attempting to carry out deadly terror attacks without any comprehensive support system.
Indian Railways: Living In Dreams
Indian Railways is changing track, giving up its separate Budget and experimenting with surge pricing on three popular trains. That leaves the behemoth with no funds to replace ageing assets and encourage further investments.
Priyanka Gandhi Agreed To Play Bigger Role In UP
Further delay in decision making could be detrimental to the party’s goal to rejuvenate its prospects in the State Assembly elections.
Mission 2019: Banega Swachh India?
Two years ago, Modi kicked off a cleanliness drive in a spectacular way. Showing the contrast between world cities and Gurgaon, MG BANGA suggests ways in which the mission can be accomplished by 2019.
The Goodwill Enjoyed By Mehabooba Mufti Has Been Erased!
Mehbooba Mufti risks losing her popularity and irking her party ranks by using New Delhi’s rulebook to deal with the unrest in Kashmir.
Is China's Support To Pakistan, Big Threat To India?
New Delhi needs to be cautious as in Pakistan’s scheme of things, strategic ties with China can serve as a powerful weapon to deal with adversaries like India.
Panama Papers: Nawaz Sharif'S Troubles Escalate
After his name surfaced in the Panama paper leak following several other charges of money laundering filed against him, there is pressure on Pakistani PM Nawaz Sharif to resign.
This Potus Will Make The World Go Bust
The man who believes global warming is a hoax and has a short attention span will now preside over the affairs not just of the United States but of the whole world. A daunting prospect.
Reel-Life Bohemians, Real-Life Hyprocrites
ADHM vs Palm Grove Heights: In cinematic life, two strangers Ranbir and Anushka meet in a pub in London and go on a kissing spree while in actual life back in India, a woman from Barcelona was evicted from her male friend’s home in Gurugram. Is cinema really a mirror of society?
