Till the other day these new generation Banks were advertised as greater than RBI and SBI in “modern innovative practises.” Now that bubble is pricked.
Smt. Chanda Kochhar ascendancy to the coveted post to ICICI, a leading private sector bank was widely welcomed by the people inside and outside the country for her acumen and indepth knowledge of banking operations. Till sometime before the news doing rounds of her involvement in scam relating to disbursal of loan amounting to thousands of crores to her husband on roll of Videocon without initiating proper accounting process, she was actively known as a no non- sense banker and possessing skills capable to take ICICI to greater heights.
It was alleged that a company related to Videocon group chairman Venugopal Dhoot invested Rs 64 crore in NuPower in 2010 and later, the proprietorship of the company was transferred to a trust owned by Mr. Kochhar for Rs 9 lakh after the Videocon Group received a loan of Rs 3250 crore from ICICI Bank in 2012. The scam in ICICI followed close on the heels of scams unearthed in public sector banks reminds of an old aged adage. If winter comes, can spring be far behind. No doubt, the banking system which earned the reputation” good to bank with” now seems doing away with and of late earning the epithet otherwise and scams started to set in and rotting the banking system on account of several discrepancies and loopholes in the system.
The scams irrevocably invite a thorough probe at various levels to stem the recurring losses and increasing NPA’s to bring the system on right track and winning the goodwill of the customers they held erstwhile. The master banker, RBI, can be roped into bring legislation in this regard as it has been doing long since. The RBI needs to put things in right perspective by developing a system with multiple checks in phased manner before disbursing hefty loan to the people and initiating a check of their credentials. The reforms in banking system is long awaited and there is need to replace the age old flawed laws to make it more customer friendly to reimpose the faith in customers and to make the system more and more meaningful standing to the cause to serve both the rich and the poor.
Until reserve Bank of India is introducing “cred defense” like “fraud detection platform” with “finger vein recognition” system in all branches of nationalised banks including ICICI Bank like private banks on the basis of cloud services by tracking on-site activities, monitored by “intelligent video analytics technologies” on the accessible locations at ATMs and bank branches, all over in Indian and overseas branches of Indian banks, worldwide.
Strange situation in the private sector too which came to view. Whether it is a paid’ leave or a garden’ leave? In private sectors, even a one percent down in dividend, the Share holders raise hue and cry. But in this case, all are mum; raises doubts - all in the loop? There is no one to stop corruption at the early stage or find out a foolproof system to control and look into the loopholes in the functioning key department of the bank.
— CK Subramaniam