India’s banking sector is less praised. It can be said that the closed fist is like locks, open handfuls like locks. The ink of the Rs 122 crore scam at the New India Cooperative Bank in Mumbai was not yet dry that the IndusInd bank scam came to light. Bank fraud is happening on a large scale. Despite the presence of auditors, chartered accountants, knowledgeable employees, etc., bank scams often come to light and the financial system becomes maligned.
The Reserve Bank has now said that there is no need to worry, because the financial position of IndusInd is stable. The depositors have been guaranteed, but everyone knows that this guarantee is like making a fence after the horse escapes. The important thing is that the Reserve Bank has to come forward to assure people, which shows that the situation is very serious.
On Monday, its prices jumped after the Reserve Bank’s assurance. The government can lift its collar up and say, “Look, how we have brought stability in the IndusInd Bank dispute.” But no clarification has been given yet about that shock of Rs 2000 crore.
The government now wants to communicate them by selling government stake in some banks. The opposite effect will be that the government’s grip on banks will be reduced. (See box)
The Reserve Bank constantly states that the rumors do not pay much attention, but the news of banks fail first reaches investors, not even the Reserve Bank.
It would be appropriate to see how the Indusbank scam was stopped and how it suffered a loss of Rs 2,000 crore. The Reserve Bank expressed its displeasure by extending only one year rather than an expansion of Chairman Sumant Kathpalia.
In recent times, IndusInd Bank has faced many failures. Things such as the microfinance scam, the resignation of the Chief Financial Officer, before the December quarter results, caused stress.
The biggest issue that raised was an issue of discrepancies. In which as soon as the information of discrepancies in the derivative account was found in the market, its shares were exposed and there was panic among the investors. Due to this panic, banks suffered a loss of Rs 2,000 crore. If the anomalies in the accounts were the internal matter of the bank, then how they reached the investors are also a big question.
In September 2023, the Reserve Bank issued guidelines and wrote to banks to review the derivative portfolio. When the bank reviewed according to the code of conduct, inconsistencies were found in some entries. Some of his transactions were seen to have an impact on the bank’s profits.
On December 10, the Reserve Bank Governor said in a press conference that banks cheated Rs 21,367 crore. This fraud took place in a period of just six months. It will be completed in six months from April 2024 to September 2024. Compared to last year, fraud has increased by 28 percent this year.
Banks are not ready to take any responsibility for this fraud. Since the accounts of the fraudsters are in scheduled banks, people trust them and then the customer is cheated. When such people open accounts in banks, they have connivance with bank employees. When Axis Bank employees in Delhi were caught in the opening scam, they were taking Rs 2,000 to open the account. The scamsters used to open about two dozen accounts, deposited people’s money in them and immediately transfer it.
The fugitive of New India Cooperative Bank wanted Kapil Dehia was arrested from Vadodara on 15 March. Mumbai’s Economic Office Branch has arrested him in a scam of Rs 122 crore. A details of Rs 12 crore deposited in his account are being checked.
The original scamster Hitesh Mehta has also been arrested by the police. An investigation has also been started of those who were given money to spend.
Scamsters have become increasingly active with the use of digital platforms. Everyone knows that some scams are impossible without the cooperation of banks. Bank employees have connivance with scamsters. There is no arrangement in banks to prevent fraudsters from opening new accounts.
When the accounts of IndusInd Bank were reviewed, there was a possibility of a burden of Rs 2000 crore on the bank. Which was equal to 2.35 percent of the bank’s total net assets.
The Reserve Bank had expressed concern about the internal administration of the bank. Due to scams made by IndusInd Bank, it will have to change its internal structure and take corrective steps.
Don’t know why, but banking scams keep coming to light. Banks are relaxing some. Eventually it causes damage to the customer. If the minimum balance is not kept in the current account, the banks start deducting the penalty from the customer’s account, which can go to the account until the account is vacated. Banks who charge high interest rate on credit card are giving good name to private lenders by charging double interest rate on loan.
How to harvest raw materials in Indusbank scam
It would be appropriate to see how the Indusbank scam was stopped and how it suffered a loss of Rs 2,000 crore. In which
The biggest issue that raised was an issue of discrepancies. In which as soon as the information of discrepancies in the derivative account was found in the market, its shares were exposed and there was panic among the investors. Due to this panic, banks suffered a loss of Rs 2,000 crore. If the anomalies in the accounts were the internal matter of the bank, then how they reached the investors are also a big question.
In September 2023, the Reserve Bank issued guidelines and wrote to banks to review the derivative portfolio. When the bank reviewed according to the code of conduct, inconsistencies were found in some entries. Some of his transactions were seen to have an impact on the bank’s profits.
Government is going to withdraw stake from five public sector banks
It is learned that efforts are being made to withdraw the government’s stake in some public sector banks. It will initially include five banks. The government’s share in such banks is around 90 percent, which the government wants to reduce to 75 percent. This means that the government wants to reduce its responsibility. The government says it will withdraw a stake under SEBI rules. Readers know that SEBI itself is entangled in controversies. The five banks in which the government wants to sell stake in the next three years include Bank of Maharashtra, IOB, UCO Bank, Central Bank, Punjab and Sindh Bank.
