It is always advisable that office bearers of an organization are changed periodically in a democratic system. At least there should be change of person every two or three years for the post of Secretary and the President in the same way as Branch head or Regional head or Zonal head or CEO of a bank is changed every two – three years.
In a democratic country like India every political parties have been changing their Presidents periodically. Prominent Communist parties change their party president every two years. Banking Industry has inherited communist culture, but it is disheartening to mention here that staff unions and associations in these banks are dependent on a few leaders who have been occupying top posts for decades. Political parties, trust or an organization or Bank union or association of officers who consider any person indispensable on top posts are really too weak to survive for long and undoubtedly prone to corrupt practices. These organizations in fact have not developed second line of management.
Even a financial Institute cannot prosper with quality and remain in good health if the persons posted at responsible and sensitive posts are not altered periodically. Whereever the same person hold sensitive posts in a bank for a longer period it is found that the bank's intrinsic value and overall quality of its assets suffers continuous erosion and the disease of corruption spread like cancer in the system. It is such organization where whimsical promotions and whimsical posting takes place.
It is these organizations where good persons are shunted away and bad persons are promoted and placed at cream posts so that the corrupt lobby is not questioned by anyone. It is under such bad administration that person like Rathore goes on getting promotion and respectable posting whereas on the other persons like Ruchika are forced to bear with injustice meted out to them. By the time realities of corrupt person get exposed by grace of God, it is too late. Justice delayed is justice denied. There are many Rathore like executives in banking Industry too who have been getting uninterrupted promotions and getting one after other elevation in their career (at the cost of good performers) despite the fact that there were indulged in corrupt practices and they caused huge loss to banks.
Keeping in view above-mentioned bitter truth of the organization I demand those office bearers of officers association as also employees unions in all banks must be changed every two - three years. If Bank employees fail to ensure this healthy culture, perpetuation of injustice cannot be stopped and frustration among good workers will continue to rise ultimately jeopardizing the health of the bank.
I hope sensible, experienced, educated and prudent class of officers will apply their wisdom and take all possible steps to stop monopoly and dictatorial attitude of certain office bearers who have in course of time become indispensable and who are eating away fruits of hard labour done by real workers. Second line of leadership must be developed in all organization for achieving sustainable quality growth of not only assets but also that of human capital.
Danendra Jain
Ganaraj Choumuhani
Agartala
7th January 2009
Thursday, January 7, 2010
Tuesday, January 5, 2010
Traditional money lenders will now act as local banks
RBI's idea of allowing private companies to set up local banks will prove to be a blunder and lead the country back to pre nationalization era.. Already thousands of Non Banking Finance Companies (NBFC) are scattered all over the country like post offices and they are almost beyond the control of RBI and Government of India. Every year we come to know ten or fifteen NBFC promoters have closed their office and flied away from town after cheating crores of money from innocent small villagers , traders and farmers by promising them to double their money in two or three years. Similarly cooperative banks and many regional rural banks in the country are mostly running mismanaged and their assets shown in Balance sheets are mostly irrecoverable.
If small private banks are set up in all small villages, towns and cities, more and more people will be cheated, lending will be done after keeping gold as done before nationalization of banks or credit will be disbursed only after mortgaging landed properties of farmers. Same Zamindari system and exploitation of poor by money lenders in disguise of local banks will come in operation and become the way of life as was prevalent before Nationalization of banks and before freedom of India. It is not exaggeration to say that even now small traders and farmers have to depend on local money lenders and it is also an open secret that these money lenders are charging huge interest and exploiting their poverty.
When RBI is unable to control less than thirty Public sector banks and thousands of NBFC, regional rural banks and cooperative banks already in operation and doing the same job, how can RBI imagine of controlling of additional numerous private banks. If the monitoring is not possible, allowing private companies to set up local banks will prove fatal and make the life of local poor residents more miserbale.Through this new concept of local banks RBI will do nothing but add fuel to fire. Government banks are already in mess and there is no doubt in it. Even farmers and small traders cannot dream of any relief from such local banks for whom Local banks contemplated by RBI will be set up by private companies.
It is to be kept in mind that government can waive loans disbursed by government banks, but cannot force private companies to waive agricultural loan or small loans. Obviously private companies will hold full securities and charge maximum interest from needy person and extort more and more profit as private airlines are looting air passengers keeping in mind the necessity and urgency of passenger. As such, the said idea of local banks contemplated by RBI in not going to help poverty ridden person in any way. Government is indirectly attempting to discard agenda of social inclusion and leave poor person on the mercy of local goondas and local money lenders in disguise of local banks.
Every one knows that private banks cannot allow their assets to become NPA (Non Performing Assets) and cannot depend on the current legal framework and ineffective judicial remedy for willful defaulters. They may also seek the help of recovery agents to apply force on defaulters which government cannot manage to support in our country and which was vehemently opposed by RBI itself in the recent past when private banks like ICICI or HDFC used local goondas to recover their money.
Moreover setting up of lacs of local banks as visualized by RBI and promoted by private companies is against the very concept and plan of Government of India directed towards consolidation of existing banks. It is ironical that on the one hand existing banks are advised by Finance Minister to go for merger and acquisition to reduce the number of banks and on the other RBI is advising private companies to set up local banks. There is no doubt that Government of India must ponder over the idea of RBI , invite opinion from experts and seek opinion of various political parties before putting the said dangerous idea in action.
Danendra Jain
5th Jauary 2010
If small private banks are set up in all small villages, towns and cities, more and more people will be cheated, lending will be done after keeping gold as done before nationalization of banks or credit will be disbursed only after mortgaging landed properties of farmers. Same Zamindari system and exploitation of poor by money lenders in disguise of local banks will come in operation and become the way of life as was prevalent before Nationalization of banks and before freedom of India. It is not exaggeration to say that even now small traders and farmers have to depend on local money lenders and it is also an open secret that these money lenders are charging huge interest and exploiting their poverty.
When RBI is unable to control less than thirty Public sector banks and thousands of NBFC, regional rural banks and cooperative banks already in operation and doing the same job, how can RBI imagine of controlling of additional numerous private banks. If the monitoring is not possible, allowing private companies to set up local banks will prove fatal and make the life of local poor residents more miserbale.Through this new concept of local banks RBI will do nothing but add fuel to fire. Government banks are already in mess and there is no doubt in it. Even farmers and small traders cannot dream of any relief from such local banks for whom Local banks contemplated by RBI will be set up by private companies.
It is to be kept in mind that government can waive loans disbursed by government banks, but cannot force private companies to waive agricultural loan or small loans. Obviously private companies will hold full securities and charge maximum interest from needy person and extort more and more profit as private airlines are looting air passengers keeping in mind the necessity and urgency of passenger. As such, the said idea of local banks contemplated by RBI in not going to help poverty ridden person in any way. Government is indirectly attempting to discard agenda of social inclusion and leave poor person on the mercy of local goondas and local money lenders in disguise of local banks.
Every one knows that private banks cannot allow their assets to become NPA (Non Performing Assets) and cannot depend on the current legal framework and ineffective judicial remedy for willful defaulters. They may also seek the help of recovery agents to apply force on defaulters which government cannot manage to support in our country and which was vehemently opposed by RBI itself in the recent past when private banks like ICICI or HDFC used local goondas to recover their money.
Moreover setting up of lacs of local banks as visualized by RBI and promoted by private companies is against the very concept and plan of Government of India directed towards consolidation of existing banks. It is ironical that on the one hand existing banks are advised by Finance Minister to go for merger and acquisition to reduce the number of banks and on the other RBI is advising private companies to set up local banks. There is no doubt that Government of India must ponder over the idea of RBI , invite opinion from experts and seek opinion of various political parties before putting the said dangerous idea in action.
Danendra Jain
5th Jauary 2010
Saturday, January 2, 2010
What are Bank Unions doing
• Why officers and employees are not transferred out from the Mumbai, Kolkata, Delhi, Bangalore, Chennai etc. and on the contrary employees of states like Orrisa, Bihar, and Jharkhand are frequently transferred out of their states even violating transfer policies?
• Why some officers are always given rural posting whereas some other officers are even promoted without rural posting violating government guidelines in this regard?
• Why some officers are allowed to work in their Metro towns for decades whereas officers of other small towns and villages are to change their place of working every year or alternate year without any incentive or compensation?
• Is there no punishment for those executives who indulge in corrupt practices and resort to whimsical transfers to keep away all employees who may prove hurdle in their money making process?
• Why RBI remains silent spectator of ill-motivated CEOs of banks and allows the malady in banks to accumulate?
• It is worthwhile to mention here that unhappy lot of employees cannot think for and make efforts to keep bank healthy?
• Is human resource not capital in real sense in Banking Industry and for some VIP CEOs of Bank?
• Why some officers are always given rural posting whereas some other officers are even promoted without rural posting violating government guidelines in this regard?
• Why some officers are allowed to work in their Metro towns for decades whereas officers of other small towns and villages are to change their place of working every year or alternate year without any incentive or compensation?
• Is there no punishment for those executives who indulge in corrupt practices and resort to whimsical transfers to keep away all employees who may prove hurdle in their money making process?
• Why RBI remains silent spectator of ill-motivated CEOs of banks and allows the malady in banks to accumulate?
• It is worthwhile to mention here that unhappy lot of employees cannot think for and make efforts to keep bank healthy?
• Is human resource not capital in real sense in Banking Industry and for some VIP CEOs of Bank?
Wednesday, May 6, 2009
Banks are unable to recover money
Indian banks should also be subjected to stress test similar to what is being done in US but as honestly and seriously as US government do. Such tests cannot be reflective of exactly true position of any bank unless and until some banking expert peep into actual records of borrowers personally and decide whether banks have rightly and truly applied prudential norms of asset classification and income recognition .
It has to be kept in mind that 57 banks of high rank banks in USA have gone bankrupt since January 2008 and 25 banks only in the four months of current year. US authorities do not play any role in concealment of the irregularities. They have rather extended bailout package in case of need and also put in action stress test of all other residual banks to avoid recurrence of bank failure in future and to nip in the bud. Health of Indian Banks is not really better than that of US but through window dressing Banks in India appear to be in healthier condition as compared to global situation.
It will be foolish and futile exercise if RBI complete this exercise by asking one or two format statement from MD of each bank either for it or for submitting consolidated report to Ministry of Finance. It will also be stupid effort if they ask Chartered Accountant to look into the matter and submit certificate of health of any bank. Team of CA's or Investigating officers with enough practical know-how of banking and technology used by banks can expose the reality of all banks in general and PSU banks in particular only when they seriously and fearlessly involve them in this task.
I have no doubt that entire game of manipulation going on in banks for years together in collusion with ministers, government officers, RBI officials and Chartered Accountants will come out and it will be established that financial position of Indians banks is critically bad and worse than that of US.
At the cost of repetition, I can say with firmness that only honest and courageous officer can expose dishonest work of bank's top officials. Further my assertion will doubly be confirmed if assets and liabilities of at General Managers and Asst General Managers of top five banks are matched with facts and figure at the ground level. I say this because without resorting to corrupt practices one officer cannot reach top position in any bank.
Danendra Jain Ganaraj Choumuhani Agartala -799001
7th May 2009
It has to be kept in mind that 57 banks of high rank banks in USA have gone bankrupt since January 2008 and 25 banks only in the four months of current year. US authorities do not play any role in concealment of the irregularities. They have rather extended bailout package in case of need and also put in action stress test of all other residual banks to avoid recurrence of bank failure in future and to nip in the bud. Health of Indian Banks is not really better than that of US but through window dressing Banks in India appear to be in healthier condition as compared to global situation.
It will be foolish and futile exercise if RBI complete this exercise by asking one or two format statement from MD of each bank either for it or for submitting consolidated report to Ministry of Finance. It will also be stupid effort if they ask Chartered Accountant to look into the matter and submit certificate of health of any bank. Team of CA's or Investigating officers with enough practical know-how of banking and technology used by banks can expose the reality of all banks in general and PSU banks in particular only when they seriously and fearlessly involve them in this task.
I have no doubt that entire game of manipulation going on in banks for years together in collusion with ministers, government officers, RBI officials and Chartered Accountants will come out and it will be established that financial position of Indians banks is critically bad and worse than that of US.
At the cost of repetition, I can say with firmness that only honest and courageous officer can expose dishonest work of bank's top officials. Further my assertion will doubly be confirmed if assets and liabilities of at General Managers and Asst General Managers of top five banks are matched with facts and figure at the ground level. I say this because without resorting to corrupt practices one officer cannot reach top position in any bank.
Danendra Jain Ganaraj Choumuhani Agartala -799001
7th May 2009
Tuesday, October 30, 2007
Recovery Agents
RBI has advised banks to review policy, practice and procedure involved in the engagement of recovery agents by banks in India. RBI Governor says that banks have a right to recover the loan but when they use less than proper means we become responsible for system as a whole to ensure such abusive practices are prevented.
I would like to state here that there are more than fifty lacs NPA accounts in banks which are bad for recovery and which involves at least one lac crores of rupees if actual NPA is assessed without any fear of RBI or Ministry of Finance. Out of 50 lacs NPA accounts there are hardly fifty cases of misbehavior or mal-treatment or use of intimidation in the entire country including more than 65000 branches of all banks by recovery agents to recover bad money from willful defaulters of the bank.
For such microscopic number of cases (compared to total number of hardcore defaulters) of improper treatment by recovery agents, RBI thought it wise to announce ban on so-called harassment by recovery agents. As a matter of fact there was no policy as such which allowed recovery agents to apply improper procedure for recovery of loans. There may be some stray cases by some exceptionally inexperienced recovery agents. Such exceptional negligible cases of improper procedure should not be generalized.
Obviously the directive of RBI advising banks to put restraint s on recovery agents will send wrong message to willful defaulters and add fuel to fire so far as mounting figure of NPA loans in the bank is concerned as also the inherent danger to the profitability of the banks as a whole is concerned. After all it is public money and it is the duty of bankers to recover the money from defaulters. There are many hardcore willful defaulters who are neither afraid of bankers, nor courts and nor the police personnel has the courage to catch them and put under custody. Such hardcore will defaulters are mostly political workers, leaders, musclemen, local goondas, advocates, police personnel who are beyond control of even government policies, whatsoever it may be.
Recovery agents which are so much tarnished by the statement of RBI governor or media men by repeated telecasting of a few stray cases of improper use adopted for recovery of dues are not actually so. As a matter of fact due to continuous follow up by recovery agents an atmosphere was being created which forced the defaulting borrowers either to repay the bank’s dues or to face humiliation before their neighbours that the recovery agents are behind him. Such fear of social image getting adversely affected by recovery agents was slowly developing repayment culture in the minds of loan defaulters. And there was nothing wrong in it.
There are proportionately very large number of l cases of misuse of power and use of third degree treatment by police department on even alleged criminals whose crime is not proved or substantiated by reliable evidences. In almost all Thana, police officers use illegal and improper methods to build pressure on the picked up person to explore the truth behind a terror act or any other criminal act committed in the town. There are lacs of illustration when police beat brutally the alleged thieves or dacoits or even innocent gentlemen to discover the truth. This is also true that in fear of further torture even alleged criminal accepts that he committed the crime even though he did not commit any wrong act. As a matter of fact innocent and gentlemen at least have fear in their mind of police departments.
It is worthwhile to mention here that little amount of fear is necessary to keep the desired level of discipline in the society and in the country as a whole. But government always shows sympathy for those who are criminals, who are defaulters and who are law-breakers. The RBI governor did not give any message for defaulters to motivate them to repay the bank’s dues.
I am unable to understand why RBI Governor and Ministry of Finance then rebuke MD and Chairmen of the banks for increasing NPA. Why do MD’s of banks then give third grade firing to ED’s, General Managers of the banks if the percentage of Net NPA increases in any bank? Why the DGMs and AGMS of a bank use the improper methods and procedures on Branch Managers and Branch level officers if NPA figure of the branch increases.
As a matter of fact, due to such culture of inhuman treatment by higher authorities in the banks that bank officials has developed a tendency to conceal the real quantum of NPA and as a result overall picture of banking industry appears rosy to RBI and Ministry of Finance. Hard and bitter truth is that due to unhealthy policies of political leaders and undesirable and unwarranted statements by leaders sitting at the top, the culture of Non-repayment of bank’s due has developed fastly and it is almost the same in the entire country. Waiver culture introduced by Mr. V.P. Singh and perpetuated and promoted by all successive government in some way or other also added fuel to fire.
Why not government takes adequate measures to stop such nuisance of police and stop inhuman treatments given to innocent or even criminal. They should be advised to show love and affection to the person who is caught by them and police should be advised to lodge FIR and submit charge sheet in stipulated 24 hours before the first class magistrate as proved under Criminal Laws.
There are numerous cases of improper procedure adopted by Income Tax inspectors, sales tax authorities, Road Transport authorities, excise inspectors and other revenue collecting agents who create panic in the market and extort huge money as bribe to exonerate the alleged tax evaders. There are several number of cases of tortures by teachers to baby students in schools for non-compliance of school works.
Government is supposed to use similar and uniform directive for all the departments. Besides they should also define the clear cut course of action for recovery of dues from rigid and willful defaulters. If by love and affection as also by persuasion bad loan could be recovered then there would not have been such huge amount of bad assets in the banks.
Even in other departments like electricity department or telephone departments or any tax collection department where there are crores and crores of rupees lying unrecovered from even gentlemen like film stars and political leaders, not to speak of bad and willful violators of rules.
After all, what is the remedy in the hands of law enforcing agencies for those 20 percent of people who do not understand the language of civil society?
. As long as administrators and government officers and political leaders show sympathy to criminals on some plea or the other and as long as criminals are not properly punished the culture of indiscipline, culture of not abiding the rules, the practice of non-repayment of legitimate dues will grow more and bring about nothing but anarchy in the society. Already we are sufferer due to frequent and unabated terror acts because terrorists and Naxalites who are afraid of none, even police and the hardcore fighter army.
As such we have to ponder over how to discipline the society and develop a culture of payment of dues in all citizens. It is worthwhile to mention here that tax burden after all increases and comes on the shoulder of those law abiding persons who are regular in payment of all types of dues.
Danendra Jain
Main Road, Ranchi 834001
e-shares.info
31st Oct. 2007
I would like to state here that there are more than fifty lacs NPA accounts in banks which are bad for recovery and which involves at least one lac crores of rupees if actual NPA is assessed without any fear of RBI or Ministry of Finance. Out of 50 lacs NPA accounts there are hardly fifty cases of misbehavior or mal-treatment or use of intimidation in the entire country including more than 65000 branches of all banks by recovery agents to recover bad money from willful defaulters of the bank.
For such microscopic number of cases (compared to total number of hardcore defaulters) of improper treatment by recovery agents, RBI thought it wise to announce ban on so-called harassment by recovery agents. As a matter of fact there was no policy as such which allowed recovery agents to apply improper procedure for recovery of loans. There may be some stray cases by some exceptionally inexperienced recovery agents. Such exceptional negligible cases of improper procedure should not be generalized.
Obviously the directive of RBI advising banks to put restraint s on recovery agents will send wrong message to willful defaulters and add fuel to fire so far as mounting figure of NPA loans in the bank is concerned as also the inherent danger to the profitability of the banks as a whole is concerned. After all it is public money and it is the duty of bankers to recover the money from defaulters. There are many hardcore willful defaulters who are neither afraid of bankers, nor courts and nor the police personnel has the courage to catch them and put under custody. Such hardcore will defaulters are mostly political workers, leaders, musclemen, local goondas, advocates, police personnel who are beyond control of even government policies, whatsoever it may be.
Recovery agents which are so much tarnished by the statement of RBI governor or media men by repeated telecasting of a few stray cases of improper use adopted for recovery of dues are not actually so. As a matter of fact due to continuous follow up by recovery agents an atmosphere was being created which forced the defaulting borrowers either to repay the bank’s dues or to face humiliation before their neighbours that the recovery agents are behind him. Such fear of social image getting adversely affected by recovery agents was slowly developing repayment culture in the minds of loan defaulters. And there was nothing wrong in it.
There are proportionately very large number of l cases of misuse of power and use of third degree treatment by police department on even alleged criminals whose crime is not proved or substantiated by reliable evidences. In almost all Thana, police officers use illegal and improper methods to build pressure on the picked up person to explore the truth behind a terror act or any other criminal act committed in the town. There are lacs of illustration when police beat brutally the alleged thieves or dacoits or even innocent gentlemen to discover the truth. This is also true that in fear of further torture even alleged criminal accepts that he committed the crime even though he did not commit any wrong act. As a matter of fact innocent and gentlemen at least have fear in their mind of police departments.
It is worthwhile to mention here that little amount of fear is necessary to keep the desired level of discipline in the society and in the country as a whole. But government always shows sympathy for those who are criminals, who are defaulters and who are law-breakers. The RBI governor did not give any message for defaulters to motivate them to repay the bank’s dues.
I am unable to understand why RBI Governor and Ministry of Finance then rebuke MD and Chairmen of the banks for increasing NPA. Why do MD’s of banks then give third grade firing to ED’s, General Managers of the banks if the percentage of Net NPA increases in any bank? Why the DGMs and AGMS of a bank use the improper methods and procedures on Branch Managers and Branch level officers if NPA figure of the branch increases.
As a matter of fact, due to such culture of inhuman treatment by higher authorities in the banks that bank officials has developed a tendency to conceal the real quantum of NPA and as a result overall picture of banking industry appears rosy to RBI and Ministry of Finance. Hard and bitter truth is that due to unhealthy policies of political leaders and undesirable and unwarranted statements by leaders sitting at the top, the culture of Non-repayment of bank’s due has developed fastly and it is almost the same in the entire country. Waiver culture introduced by Mr. V.P. Singh and perpetuated and promoted by all successive government in some way or other also added fuel to fire.
Why not government takes adequate measures to stop such nuisance of police and stop inhuman treatments given to innocent or even criminal. They should be advised to show love and affection to the person who is caught by them and police should be advised to lodge FIR and submit charge sheet in stipulated 24 hours before the first class magistrate as proved under Criminal Laws.
There are numerous cases of improper procedure adopted by Income Tax inspectors, sales tax authorities, Road Transport authorities, excise inspectors and other revenue collecting agents who create panic in the market and extort huge money as bribe to exonerate the alleged tax evaders. There are several number of cases of tortures by teachers to baby students in schools for non-compliance of school works.
Government is supposed to use similar and uniform directive for all the departments. Besides they should also define the clear cut course of action for recovery of dues from rigid and willful defaulters. If by love and affection as also by persuasion bad loan could be recovered then there would not have been such huge amount of bad assets in the banks.
Even in other departments like electricity department or telephone departments or any tax collection department where there are crores and crores of rupees lying unrecovered from even gentlemen like film stars and political leaders, not to speak of bad and willful violators of rules.
After all, what is the remedy in the hands of law enforcing agencies for those 20 percent of people who do not understand the language of civil society?
. As long as administrators and government officers and political leaders show sympathy to criminals on some plea or the other and as long as criminals are not properly punished the culture of indiscipline, culture of not abiding the rules, the practice of non-repayment of legitimate dues will grow more and bring about nothing but anarchy in the society. Already we are sufferer due to frequent and unabated terror acts because terrorists and Naxalites who are afraid of none, even police and the hardcore fighter army.
As such we have to ponder over how to discipline the society and develop a culture of payment of dues in all citizens. It is worthwhile to mention here that tax burden after all increases and comes on the shoulder of those law abiding persons who are regular in payment of all types of dues.
Danendra Jain
Main Road, Ranchi 834001
e-shares.info
31st Oct. 2007
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