Regulating Body To Control bank Loan

I think there is no regulator at all, neither for home loan nor for industrial or any other loan. Whatever is visible to Mr. Pratip Choudhury may by on books for record sake only.

Many roads are constructed on books of PWD only , in many government offices, stationary, medicine and many other useful goods and services are supplied on paper only to raise fake bill. Similarly home loan or other loans are regulated on paper, auditors sell certificates for all types of compliance . 

Had government or RBI regulated home loans , there would not  have been so many cases of multiple financing or financing on fake deeds.

If government is really serious on home loans , they could have established by this time a strong body to regulate construction of residential or commercial apartments to stop exploitation of persons who book a flat or a plot in the apartment but the builder do not complete the project even after delay of years together.

There are many home loan takers in this country who have though made full payment to builder but not got the possession of the house or flat or shopping place .Government or RBI both are silent spectators of all corruption and deficiencies as long as there is no mass revolt against the system or there is violent agitation on road.

RBI has totally failed to ensure good health of assets of bank. Neither Human resource are happy nor assets created by loans are safe and standard. Ministry of Finance failed to provide full safety to depositors and investors despite bundles of laws and rules framed by them.Chit funds have flourished in each and every nook corner of the country and hard money of common men and poor persons is looted by such chit funds in broad day light.

Though every year some or the other chit fund, NBFC,cooperative bank, or rural bank or even commercial banks have  found to be involved in corruption and cheating , RBI and GOI has not taken any such strong and effective step which could stop repetition of such scams and such broad day loot.They always preach the sermons and promise to take stringent action against erring persons but always fail in imposing actual punishment to the main guilty and always fail to nip in the bud despite having plenty of control mechanism in the system. 

We have seen in the past how hundreds of cooperative banks were closed only due to reckless financing made by them and due to wide spread corruption in these bank . These banks failed despite so called strict control mechanism said to be in force and despite the fact that RBI uses to give certificate of good governance and healthy financial system in the country .Why?

Not only cooperative banks failed, many regional rural banks failed due to rise in bad debts . When bank become too weak to control , when customers of the bank is agitated and start violent movement against bank officials and when large scale corruption of politicians and official is exposed by some one or the other. RBI and GOI then come into action and order merger of these RRBs to their parent bank.

Many commercial banks failed during last few years and GOI ordered merger of these bank with some other strong bank.

Why ?  

Only because most of these banks or chit funds or NBFC  get patronage form some or the other strong political leader.

Officials of RBI and GOI normally sleeps and remain dormant controller of banks and functioning of financial institutes in general. majority of officials are made happy by promoters and managers of these banks through costly gifts and cash bribe. Auditors after taking bribe and costly gifts issue certificate of health to regulating body and in this way cancer of corruption is allowed to grow until it explodes and collapses to end.Finally a committee is set up to investigate the reasons of failure or to find out the modus oparandi of  loot of the bank but action is never taken against any erring officials because most of them are under patronage of powerful political leaders who were bought during good days of the bank.

No cause for separate home loan regulators: Chaudhuri-Business LIne

SHOBHA ROY

KOLKATA, MAY 18:  

Pratip Chaudhuri, Chairman, State Bank of India, on Saturday pitched for a single regulator for all housing loans provided in the country.

Currently, the Reserve Bank of India regulates the housing loans provided by banks, while the National Housing Bank is the regulatory body for home loans disbursed by housing finance companies such as HDFC Ltd and LIC Housing Finance Co Ltd.

According to Chaudhuri, a single regulator would help remove the regulatory arbitrage currently existing between banks and housing finance companies.

"I see no justification for having separate regulators for home loans. Perhaps, the objective would be better served with RBI itself becoming the sole regulator for all loans, including home loans. In no other country do we have different regulators for different verticals such as industrial loans, home loans and vehicle loans,” Chaudhuri told newspersons on the sidelines of a banking summit organised by the Indian Chamber of Commerce here today.

http://www.thehindubusinessline.com/industry-and-economy/banking/no-cause-for-separate-home-loan-regulators-chaudhuri/article4727259.ece