The rot runs deep in the Banking system and MRV suggests a way out

There are also problems with NACH . Most of the charges from NACH does not reflect who is credited or debited . They are just “NACH charges debited” . No one understands in the bank as to what those charges are for . Again NACH is now preffered in lieu of ECS and is again owned by the same cartel of private banks

Being a senior banker with over 2 decades of experience , I found this video to be well intentioned but almost childish and naive in it’s suggestions . In my view , the reason this kind of thing happens i.e. the rich and powerful never get punished is our dysfunctional judicial process.

I was quite disappointed with the video. It seems that kicking out the board of governors of RBI will magically solve all problems. While it may indeed help (I wasnt too impressed with the board myself), the malaise is not limited to the governance function of RBI alone.

Ministers and sitting officials demand that bankers do certain things – like give a loan to a favoured ally – on pain of punishment. Banks are *forced* to meet priority loan quotas – even when no eligible potential borrowers are available. Bank officers constantly live under the threat of transfers (to hardship locations) for not toeing the line.

While some have suggested privatisation, the elimination of political interference and the respect for lending norms (over meeting quotas) will go a long way to curing ills of the system. It will also help that the employees are treated as employees and not as bonded labourers. An employee with a spouse and two kids in primary school is susceptible to a lot of pressure when the survival of his family is threatened. Even an honest man would give up after a while.

The brits broke the thumbs of weavers to create a class of poor labour for building the railway or for indentured labour. The way employees are treated today is not much better. If the management is not the problems, the unions are – putting undue pressure on employees as well.

the problem is multi-faceted, and the video fails to address these in any depth, especially given the length of the video.

Finally – the RBI has a lot of intelligent people, but seems to have lost its way in policy matters. They seem to work with the optics rather than the fundamentals. Maybe I am wrong, but it certainly does appear so.

you have to understand the cause of the rot and punish the guilty and not reward them with allowing them to keep their Disproportionate assets they amassed with corruption and give them pension to boot !

in PNB scam it was failure to adhere to banking norms both by the culprits and management (HR) in not transferring them when due.

In allahabad Bank , director opposed the loan , FIN SEC KICKED HIM OUT and that allowed this to continue. shows political interference . if you don;t question fin sec find reason why he did it and if he has benefitted or he has D Assets . Then proceed and recover the loot from his assets/pension.

Only this will send message and stop/reduce such frauds in future. not otherwise. Jaitley is wrong as auditors can’t look into either of these cases unless they are required to as part of deeper forensic audit.
Its bank officers job to adhere to norms.

To clean the river, we should start cleaning process from where it begins and not from where it ends. Why those people who are in power don’t use their power given by the people to clean the system ? I can’t understand !!! Power is meant to use not to grant mercy to the corrupt.