They might have guessed some fraudulent activity, but might not have guessed to be of this magnitude.But small or big, they are definitely indirectly responsible for the culprits' escape. Jayasala 42
Harshad Mehta's case was a miniature Modi episode.Since 1960 RBI had framed strict regulations and for the past 50 years no 'sinking' of bank was reported and financial health of India was much better than that of US.Slowly RBI is becoming a puppet in the hands of Finance Ministry and many powers of RBI are now with the vested interests of the GOvt.Since the advent of computerisation and introduction of electronic equipments, the possibilility of undetectable crimes has risen. A few of banks' documents such as LOU and certain LOC are kept out of purview of Bank's audit and core Banking system.As the new systems emerge, the scope of audit also must include the new schemes and no auditor can be a novice to such developments and their knowledge should be uptodate.Extra Training courses to make the auditing wing get familiarised with new devts is an inseparable part of banking administration and we have miserably failed in implementing the same. jayasala42
When the work allotment diminished, the contractor's billing and turn over came to a trickle and therefore the contractor devised an ingenious method to rake up huge amount in crores ; and both the department that awarded the contract and the Banker who had been discounting and purchasing bills from this contractor without knowing there was no work allotted against the contract were left high and dry. 2. The psu bank manager suspected something out of character and when she found huge amounts outstanding from the Government department, rushed to the latter's office and met the official concerned to know the reason. 3. The officer checked up from some register found some two hundred odd bills amount totalling to few crores of rupees stood returned to the banker over a period of 6 weeks and these returning of bills done at junior levels. 4. It was later found, without making the contract issuing office of government - a party to the bill discounting agreement, he managed to hoodwink the banker and drawn the agreement to discount the bills. 5. Bills (forged) returned to the (rightly) banker who had purchased these fraud bills from the contractor stating there was no such work assigned. 6. The bank dismissed official responsible for drawing up such agreements without verifying bonafides of the parties entering into agreement (usually it used to be a tripartite) and the lady manager was saved as she promptly reported the matter to higher ups. Regards. God Saves the Nations and its Honest citizens always.
Well explained. let me add. Granting LOU by banks is normal banking practice. All went well as long as PNB was granting LOUs. That was helping NM to pay back also by rolling old with the new. The moment PNG smelled the fish, it stopped granting further LOUs. PNB is one of the top banks in India and banks accepted their LOUs for granted. LOU is like a bank draft. There is no perfect system as there is no system without loopholes. It is further complicated when the insiders are lured by temptations or are pressurized from the top who in turned are pressurized by political bosses. The 90 days validity of a LOu should strictly be followed.
Dear Madam , When i read your post , i was very much surprised . For a different reason. Just today morning i had got a Whatsapp share of this very same text , as attributed to someone else . Please see the two screenshots of two sections i have attached - exactly same , word to word. Except for one or two lines , the whole article is same to same . Someone seems to have stolen your snippet
While the dissemination takes place,you won’t be surprised It comes back completing the circuit to the original poster/ author and discredit/credit be given to plagiarist who had perpetrated it. The very act bespeaks how wonderful madam sister’s analysis in explaining the . Regards.
Dear Jayasala Ma'am @jayasala42, There is a saying in Hindi - chota muh badi baat. Means: small mouth big talk. What follows is guilty of that from me. You have a keen eye for articles that talk about current issues and evergreen issues like parenting. Please do bring them to IL, share the link to the article, and we can discuss it to everyone's hearts' content. : ) Copy/pasting the entire article without citing the original article, or even copy/pasting entire article after citing the original article, creates confusion and possible other troubles for all. Online world and its content is very complicated. We are talking about plagiarism, content aggregation, SEO and much more as briefly explained here. This PNB article is not the first time this has happened. Late last year, we had this from you which was lifted from here. Please continue to bring good articles on interesting topics to our notice. Share the links. Maybe a small excerpt from it. Copying entire text of a long article is not a done thing. Does not reflect well on IL and puts admins, moderators in a tough spot when this is detected after thread is some pages long. Best Regards, Rihana P.S. What is Tamil for 'small mouth big talk'? : )
