https://www.business-standard.com/india/news/reserve-bank-tightens-rules-to-reign-in-fraud/437714/&com=y&#cs
https://expressbuzz.com/finance/vigilance-probe-against-corporation-bank/280136.html
https://ibnlive.in.com/news/housing-loan-scam-top-lic-bank-officials-held/135758-3.html
RBI has advised all banks including private and foreign banks to set up vigilance wing in their administrative offices to check malpractices, fraud, bad lending, bribe led lending, kickback oriented contractual work, inflated purchases of stationeries, bribe based recruitment, bribe based promotion, bribe based transfers etc.
But what will happen when the vigilance officers themselves are not honest and are the most corrupt and looters? It is worthwhile to mention there that all public sector banks already have the provision of vigilance wing since long. Unfortunately none of top executives have been punished as long as there is media uproar or there is mass upsurge against the corrupt officers. Hundreds of files of corruption related to top officials have been closed by taking bribe by vigilance officers. If CBI or any authority try to open even closed files, I think it will open Pandora’s box in banking industry which is full of worms and snakes.
As such, corrupt vigilance offices are of no use because they can ignore the inquiry after receipt of bribe from corrupt officer against whom charges of corruption is leveled by inspecting officials or whistle blowers. Bank officers can be tortured by transferring his services to most critical and remote places whereas on the contrary the most inefficient and the most corrupt officer can be awarded by giving him cream posting and out of turn promotion. Bad officers are in this way protected and good officers are made scapegoat
Appraisal system and Interview system in banking industry for promotions is misused by top ranked officials and this is the root cause that proportion of Non Performing assets has been increasing quarter after quarter, cases of fraud, bribe led lending , bribe led write off of loans of willful defaulters, commission based purchase of ATM and other costly materials, bribe based inferior construction work has been increasing and increasing inspite of so called preventive steps said to have been taken by regulating agencies .
And ultimately health of banks in public sector has been deteriorating year after year even though the clever executives of every bank try to manipulate data in the balance sheet to their best possible extent in collusion with team of Chartered Accountants.
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