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Danendra Jain email@example.com
Senior bank officials working as Branch Head or Regional Head or Circle Head
or Zonal Head or Central Head, all have barring some exceptions resorted to
window dressing in the past and it is their mastery in art of window dressing
that they continued to be blessed with one after other promotions superseding
After all why RBI officials and Ministry of Finance maintained silence for decades together is a mystery? Most of senior banks have got blessing of some ministers or some officers in MOF or RBI and this is why they not only get before-time promotion but also get safe exit at the time of retirement even if they committed hundreds of irregularities in their posting at various offices.
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PS by Rajesh Goyal : Mr Jain in the above article has summed up a
kind of fraud which is going in banking industry for years. RBI and
Finance Ministry have not taken any action against any CMD or top officials
during all these years. They are very well aware of these malpractices
which breed corruption but they have chosen to remain silent except for issuing
a routine circular that banks should not indulge in window dressing. This
is similar to our corrupt politicians who give long speeches in the Parliament
that we need to root out corruption from the society. RBI and
Finance Ministry are part of this scam. Now it is openly being
discussed in the public. In an article titled
" Public Banks Face Cap On Costly Year End Deposits", it is mentioned that
"In the just concluded financial
year, banks raised nearly a third of their total deposits in the last month of
the year". The article further says
The ET articles also says "The interest rates on certificates of deposits, or CDs, the instrument used by banks to raise bulk or wholesale deposits, rose to a maximum of 11.5% by March, over 150 basis points from the end of December". This kind of window dressing is clearly against the retail depositors, who even on 1 to 10 years deposits get around only 9%. No PS Bank paid more than 9.5% even during the period when rate of interests have peaked. The faithful all-weather customers, including senior citizens are denied the highest rate of interest, which is paid to corporate and some government deposits. To garner government deposits, bribe is paid at various levels even by almost all PS bank officers, as senior officers in government departments are well aware that dishonest bank officers need these to get promotions and such dishonest officers can afford to pay for procuring such deposits.
Can any CMD or ED or GM can say that he / she is not aware of such practices. Rather they openly encourage such practices in meetings and praise such officers who have been able to get such deposits / loans. It is sad commentary on the part of Indian banking. I can only hope that after some cleaning in the promotion policy guidelines recently, RBI and Ministry of Finance will come together and punish those who indulge in such practices to earn monetary benefits and remain in good books of senior officers / ministry officials.