RBI and Ministry of Finance First gave
clean Chit to Private Banks exposed by sting operation carried out by
Cobrapost. Now they say that these banks were really found indulged in Money
laundering and imposed fine to save their image. In fact officials of RBI and
Ministry of Finance who always share dias with top executives of these banks
and announce various attractive policies to attract voters are not at all
interested to punish black bankers and black corporate who fund their parties.
If they are really honest in their
approach and want to accept the bitter truth they should order CBI to
investigate the entire story of money laundering going on since years with the
hidden support of politicians and corporate. CBI may be asked to look into the
aspect of bribing adopted by officials of private banks to dilute the intensity
and findings of the investigation said to have been carried out by RBI to shut
the mouth of media men.
CBI, IT and ED officials should be asked
to verify the assets of top executives of banks, politicians, and investigating
officials who together left no stone unturned to close the dirty chapter of
money laundering and black money by imposing peanut like fines. If public sector
banks are also investigated, it will become crystal clear that the castle of
banking is constructed on the pillar of black money only and majority of
bankers sitting at top posts are instrumental in perpetuation of money
laundering, hawala and black money parking.
But the million dollar question is that
when majority of officials of all regulators are of same feather, who will
truly investigate, who will honestly impose fine on real culprits and who will
take the remedial steps. And the most perturbing fact is that even media men
are bought to change the findings as per whims and fancies of corrupt officials
of the system.
As a matter of fact in every bank there are
some specialist officers. Some are specialist in media management,
some are expert in managing RBI officials, some are apt in motivating powerful
lobby in Ministries, some of them are specialist in dealing with politicians,
some are expert in managing CBI officials , some manages money from corporate
when they sanction loan to them , some have skill in buying deposits
from government departments and so on........
Such specialist officers
rise in their career without any hurdle , though at the cost of bottom
line of bank and at the cost of health of the bank. Officers who believe
in real growth are thrown in critical areas. Only clever
and shrewd officers win the race. There are exceptionally few who
really care for health and growth of the bank . This is the real but painful
story of all government offices, departments, social bodies, NGOs, schools and
colleges.
http://importantbankingnews.blogspot.in/2013/06/rbi-imposes-fine-on-icici-hdfc-and-axis.html
RBI and Ministry of Finance First gave
clean Chit to Private Banks exposed by sting operation carried out by
Cobrapost. Now they say that these banks were really found indulged in Money
laundering and imposed fine to save their image. In fact officials of RBI and
Ministry of Finance who always share dias with top executives of these banks
and announce various attractive policies to attract voters are not at all
interested to punish black bankers and black corporate who fund their parties.
If they are really honest in their
approach and want to accept the bitter truth they should order CBI to
investigate the entire story of money laundering going on since years with the
hidden support of politicians and corporate. CBI may be asked to look into the
aspect of bribing adopted by officials of private banks to dilute the intensity
and findings of the investigation said to have been carried out by RBI to shut
the mouth of media men.
CBI, IT and ED officials should be asked
to verify the assets of top executives of banks, politicians, and investigating
officials who together left no stone unturned to close the dirty chapter of
money laundering and black money by imposing peanut like fines. If public sector
banks are also investigated, it will become crystal clear that the castle of
banking is constructed on the pillar of black money only and majority of
bankers sitting at top posts are instrumental in perpetuation of money
laundering, hawala and black money parking.
But the million dollar question is that
when majority of officials of all regulators are of same feather, who will
truly investigate, who will honestly impose fine on real culprits and who will
take the remedial steps. And the most perturbing fact is that even media men
are bought to change the findings as per whims and fancies of corrupt officials
of the system.
As a matter of fact in every bank there are some specialist officers. Some are specialist in media management, some are expert in managing RBI officials, some are apt in motivating powerful lobby in Ministries, some of them are specialist in dealing with politicians, some are expert in managing CBI officials , some manages money from corporate when they sanction loan to them , some have skill in buying deposits from government departments and so on........
Such specialist officers
rise in their career without any hurdle , though at the cost of bottom
line of bank and at the cost of health of the bank. Officers who believe
in real growth are thrown in critical areas. Only clever
and shrewd officers win the race. There are exceptionally few who
really care for health and growth of the bank . This is the real but painful
story of all government offices, departments, social bodies, NGOs, schools and
colleges.
http://importantbankingnews.blogspot.in/2013/06/rbi-imposes-fine-on-icici-hdfc-and-axis.html
Cobrapost expose: RBI penalises Axis, HDFC, ICICI banks for rule violations--ET
MUMBAI: The Reserve Bank today imposed a fine of Rs 5 crore on Axis Bank, Rs 4.5 crore on HDFC Bank and Rs 1 crore on ICICI Bank for violation of KYC norms and anti-money laundering guidelines after inquiring into charges levelled by a online portal Cobrapost.
"After considering the facts of each case ... Reserve Bank came to conclusion that some of the violations were substantiated and warranted imposition of monetary penalty..." the central bank said in a statement.
RBI imposed a penalty of Rs 5 crore on Axis Bank, Rs 4.5 crore on HDFC Bank and Rs 1 crore on ICICI Bank.
It further said that a similar scrutiny was being conducted at corporate offices of 36 other banks and "the process of follow up action in respect of these banks is at different stages of its completion."
The penalty follows scrutiny carried out by RBI of books of accounts, internal control, compliance systems and processes of these three banks at their corporate offices and some branches during March/April 2013.
The scrutiny was conducted to investigate into the allegations of contravention of Know Your Customer (KYC)/ anti-money laundering guidelines against them following expose by online portal Cobrapost.
Although the investigation did not reveal any prima facie evidence of money laundering, RBI said, "any conclusive inference in this regard can be drawn only by an end-to-end investigation of the transactions by tax and enforcement agencies."
RBI further said that a similar scrutiny was being conducted at corporate offices of 36 other banks and "the process of follow up action in respect of these banks is at different stages of its completion."
Based on the findings of the scrutiny, the Reserve Bank had issued show cause notices to each of these banks, in response to which the individual banks submitted written replies.
The penalty, it said, was imposed after considering the facts of each case and individual bank's reply, as also, personal submissions, information submitted and documents furnished.
The scrutiny of these three banks, RBI said, revealed violation of certain regulations and instructions issued by the central bank from time to time.
The violations include non-observance of certain safeguards in respect of arrangement of "at par" payment of cheques drawn by cooperative banks, non-adherence to certain aspects of KYC and AML guidelines like risk categorisation and periodical review of risk profiling of account holders.
They did not adhere to the KYC norms for walk in customers for sale of third party products and failed to file cash transaction reports in respect of some cash transactions and sale of gold coins for cash beyond Rs 50,000.
In certain cases, the banks failed to obtain permanent account number (PAN) card details or form 60/61 and verify the source of funds credited to a few non-resident ordinary (NRO) accounts.
RBI had launched the investigation into the working of banks following the expose by Cobrapost which showed some bankers giving suggestions to customers on ways to bypass regulatory norms.
The first expose had named ICICI Bank, Axis Bank and HDFC Bank. Later scores of other public and private sector banks and insurance companies figured in the expose.
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