Bank union demands stern action against top executives

According to AIBEA, while there are clear-cut rules and guidelines regulating the conduct of  bank employees and officers, there were no such regulations for executive directors and CMDs

 

The All India Bank Employees' Association (AIBEA) has urged the union government to frame a set of rules and conduct regulations applicable to executive directors (ED) and chairman and managing director (CMD) of banks.

 

CH Venkatachalam, general secretary of the AIBEA, said that while junior-level officers and employees were sacked by bank managements for bribery and misconduct, top executives committing major frauds often go unpunished. "If there be a rule for the entire staff of the bank, why not for the top executives?” he asked in a statement.

 

Last Saturday, the Central Bureau of Investigation (CBI) arrested six people including Sudhir Kumar (SK) Jain, CMD of Syndicate Bank in a case of alleged bribery of Rs50 lakh.

 

“This is not the first time that top executives of banks seem to have indulged themselves in," Venkatachalam said, adding "earlier, in the 90s, the CMD of UCO Bank was arrested for involvement in the Harshad Mehta scam and was jailed. There have been cases coming up now and then and many cases get hushed up."

 

“It is high time that the Government should frame a set of rules and conduct regulations applicable to the EDs and CMDs of the Banks,” he said. Venkatachalam goes on to add that, “In a context where Banks are facing huge bad loans, the accountability for the same at the top should be ensured.”

 

The statement from AIBEA goes on to note that, cases of high level officials at the State Bank of India and the United Bank of India were either hushed up or buried. This is especially problematic when you consider that ordinary employees of these banks suffer swift action for much less serious misdeeds and misdemeanours.

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COMMENTS

Nagesh Kini

2 years ago

The CMDs are the beginning of all NPAs and CDRs.
As a purely preventive measure the MOF and RBI should carry out reality checks on all sanctions from 1st Jan. 2014 as to how many have really passed the test of due diligence scrutiny. And also how may older ones are on the verge of turning NPAs without being declared and revisit all CDRs which have failed to comply with conditions and start cracking the whip.

Gopalakrishnan T V

2 years ago

The Union's demand is just and right.No one can escape from wrong doings and the law ,rules and regulations should be made applicable to all in letter and spirit. Banks management generate NPAs and they get written off without being questioned or without any justification. Prudence demands that there should be transparency in the loan apprisal system, sanction, monitoring and close supervision. Bank has technology for everything why not have a system to identify symptmos of NPAs in their early stages and make the borrwers and banks accountable with some penalty?There should not be and cannot be any bias or favouritsm in the identification of symptoms of NPAs and levying of penalties.These Penalties can take care of NPAs and depositors and tax payers can be spared in the process. Accountability of Executives can also be fixed if adequate monitoring and supervision is ensured. Hope Anybody can get away with anything may perhaps come to an end with the arrest of the CMD of Syndicate bank,. This is a welcome move and should be a lesson for all wrongdoers.

Modi Supporters All Confused?

Nobody knows whether Modi Sarkar will modify Congress programmes like Aadhaar before implementing them and how it plans to control inflation

 

It is not yet three months since Narendra Modi was sworn in as prime minister (PM) with the biggest popular mandate in the past three decades. And it is a fortnight to Independence Day when he will address the nation for the first time from the historic Red Fort. That speech may well provide a road map to the achche din that he promised those who voted him to power with a thumping majority. But the PM cannot fail to notice that even his most ardent supporters are flummoxed and worried.
 
While writers at pro-Modi niticentral.com may choose to segment critics and ascribe personal motives to their criticism, it would be sad if the PM and his core team is satisfied with the explanation. Pratap Bhanu Mehta put it well in a recent article, when he says that the Modi government is “fast confusing the trees for the forest and ignoring the sense of restlessness brewing outside its hallowed circles.”

Such restlessness must not be confused with the disgruntled elite seeking rewards and gratification for their support to the BJP; or the forever-ranting mainstream media which has not come to terms with its loss of privileged access to those in power.

This mass of Mr Modi’s supporters is seeking action and a clear direction. They can no longer be kept busy in pointless discussions on a Facebook-like platform called mygov.nic.in which has just been launched to interact with India. Mr Modi’s numerous followers on the social media will quickly realise that mygov.nic is more like a meaningless forum for the argumentative Indian rather than a way to participate and contribute to the governance process. And, unless it changes, it will soon fizzle out. But more about that later.
 
Mr Modi was voted to power because people believed his promise of change. This may mean different things to different people—to some, it may be a shift towards aggressive nationalism, or more hindutva. But the majority, including some of the rabid elements, voted for administrative reform (the promise of less government, more governance), growth, efficiency and infrastructure development at the very basic level.

Contrary to what some commentators may believe, Mr Modi’s supporters are not concerned by his silence. In fact, they welcomed his decision to speak less and to gag and discipline his ministers. They were also delighted at reports that the bureaucracy is being forced to work, for the first time in their careers.

Their restlessness is out of concern over issues like galloping inflation and the decision to carry forward several initiatives of the previous government with no explanation about whether Modi sarkar will do things more efficiently, or differently.
 
Mr Modi’s supporters wonder why the government is not in ‘mission mode’ about tackling inflation, when every politician knows that high vegetable prices can lose elections. When the finance minister addresses the Reserve Bank of India (RBI) in the next few days, they are concerned that financial inclusion and not inflation will be on top of the agenda.

As I have written in the Crosshairs section, there is no indication from the many media reports that Modi sarkar’s version of financial inclusion will not be a loan mela, with government banks and insurers picking up the tab for all defaults on the Rs5,000 overdraft that will be provided to 150 million householders.
 
Similarly, what are we to make of media reports about the continuation of Aadhaar? It was astonishing to read a report in The Economic Times that one visit from former UIDAI chief Nandan Nilekani to the PM was enough to bring it back on the agenda. The UIDAI (Unique Identification Authority of India) has also been sanctioned more funds in the Budget and Mr Modi plans to use his brute majority in parliament to get the scheme cleared, apparently without addressing the many concerns about it. Is this the sign of a government that communicates with the people?

It may be recalled that the Supreme Court had stayed the backdoor attempt to make Aadhaar mandatory by taking note of the many concerns over privacy, data safety and costs that were raised in public interest litigation. This government has simply ignored this key fact.

Dr Bibek Debroy reflects the thoughts of many in an article in The Economic Times, where he says that Aadhaar will not even help in deciding on the criteria for inclusion in Antyodaya schemes, to direct subsidies more efficiently to the poor. Till date, that has been the only ground on which Aadhaar has been justified.

For the really poor, who have no other identification, Aadhaar does not even address simple concerns about faded fingerprints, unclear Iris scans and biometric changes due to simple aging. So there will be nothing to prevent the misuse of cards to such people, or they will remain without an identity.


The issue of who will pay for the huge number of biometric readers needed to make Aadhaar effective has not been addressed by Modi sarkar either. Will the cost be dumped on nationalised banks again?

Most worryingly, the ‘nationalistic’ government has not even clarified whether the shoddy Aadhaar data will be cleaned up to ensure that identification, subsidies and benefits are only for Indian citizens and not illegal immigrants.

While it is early days as yet, the government is also silent on Mr Modi’s promise of ‘less government, more governance’. Neither the Budget, nor the many regulatory changes announced by various ministries indicate a move to cut red-tape that subjects entrepreneurs to endless harassment and extortion by government officials.  

Instead of engaging with people on issues that concern them, Mr Modi grandly announced the launch of mygov.in on 26th July. It is a web portal that claims to allow the common man to reach out to the government and the PM himself.
 
Several things about the portal suggest that Mr Modi, operating inside the government, through the National Informatics Centre (NIC) does not have the same touch and understanding of people that allowed him to craft one of the most dramatic and technologically savvy election strategies and victorious campaigns in the world.

Mr Modi is one of the biggest influencers on Twitter with nearly 5.5 million followers. Shouldn’t mygov.nic.in have anticipated the rush to log in? Four days later, many Modi supporters sheepishly admit that they had been unable to register.

The registration process is cumbersome and has bugs. But what is worse, those who managed to register quickly found that the PM is uninterested in their ideas and suggestions, unless they fall in six specific buckets—job creation, cleaning the Ganga, boosting girl child education, cleaning India, skill India and digital India. There is no way to convey our thoughts and suggestions to the PM on dozens of other important issues that affect people.

The biggest problem with mygov.in is that it is just another social-media-like platform, like a Facebook or Twitter, open to the babble of millions of Indians. Is it only meant to keep restless supporters engaged in mindless discussions among themselves?

 

The design and process is certainly off-putting for those who thought the PM was interested in serious, clearly thought out ideas for participation in the governance process. Unless the site expands the scope of interaction, makes it more  accessible and differentiates between the serious and uninformed, or frivolous comments and suggestions, it would have failed in its objective of seeking genuine public participation.

To repeat, the restlessness among the vast majority of Mr Modi’s supporters is not from selfish self-interest. As Pratap Bhanu Mehta says,“… for a government that promised a new narrative, the adjustment to old ways is striking.”

 

Sucheta Dalal is the managing editor of Moneylife. She was awarded the Padma Shri in 2006 for her outstanding contribution to journalism. She can be reached at [email protected]

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COMMENTS

Bharat parikh

2 years ago

SHRADHHA SABURI is CALL FOR TIME
MODI DOES NOT HAVE MAGIC STIKE TO GET RID OF CORRUPT & EXPERINCE SEASONED POLITICIANS

manoharlalsharma

2 years ago

what r the Confuses pl., enlist.

or to be get before ELECTION,Now no solution so mind well, remembers in nex't ELECTION.

SuchindranathAiyerS

2 years ago

Govt must begin by cutting profligacy and corruption. To do this, India must champion accountability, draconian punishments, and trash a plethora of Totalitarian, Social Engineering laws, rules and regulations enabling the sacking of more than 60% of Government employees to retain only those with merit and competence.. Without this, the BJP is no more than a Khangress by another name as was the Shairi-Iftaar and Pakistan-Terror-Mahamutton appeasing, Quota respecting, NDA Govt of Mr. Vajpayee.

vns

2 years ago

It is correctly observed that Modi is exhibiting confusion as he and his BJP was calling Congress by names on all the policies and programmes Congress followed. But now he is pushing forward the same policies of the Congress. Perhaps it is the Chair that drives the mind. Another reason for calling Modi or his supporters as confused is because he does not utter a word on policy matters after becoming PM. Somebody, for this reason, called him Maunendra Modi and others call him Duplicate Manmohan.

REPLY

Dayananda Kamath k

In Reply to vns 2 years ago

10YEARS OF MOUN BU MANMOHAN DID NOT BOTHER WITHOUT ANY SIGN OF WORKING BUT 2 MONTHS OF MOUN BY MODI AND PROOF THAT HE IS WORKING IS BEING QUESTIONED. IT IS HIGH CONSPIRACY TO DERAIL THE MODI.

olga tellis

2 years ago

super. the article really echoes what one has been feeling as an ardent supporter of modi. i thought he would use his party cadre to form groups to fight corruption at various levels. in maharashtra for instance where elections are just two months away one does not see the bjp cadre doing anything in the state so much so that the chief minister is confidant of winning because he says people are already disillusioned with modi. this is not to say that some of the steps he has been taking are not admirable. for instance the government's stand at WTo was admirable and so also on GM foods. his assertion of india's voice is something that is needed. nor has he kowtowed to india's top industrialists as his detractors said he would be manipulated by them!.but like u said he must have some way of communicating with the people and must keep his promises to farmers!!!

Sandeep

2 years ago

Guys this article is not about Modi's supporters, it's about constant campaign of moneylife to malign aadhaar and their dreams were shattered when Modi himself backed aadhaar after reviewing the enrollment progress made by aadhaar(65 crore) and NPR(25 crore). To speed up the enrollment Modi backed aadhaar and also asked to complete enrollment of 100 crore ASAP so that it can be used to weed out fake/duplicate/ghost and middlemen beneficiary from government system and hence reduce the subsidy burden which in turn will control fiscal deficit that's giving our FM sleepless nights.

REPLY

Sandeep Khurana

In Reply to Sandeep 2 years ago

With SC endorsing and reversing govt stand on Aadhar, that remains unchallenged yet, it is Moneylife that is proved right. So to say moneylife maligned Aadhar or Aadhar supporters are maligning moneylife, it is not difficult to judge what is truth. Implied assumption that if Modi govt follows UPA policies then they must be right policies is misplaced.

Dayananda Kamath k

In Reply to Sandeep Khurana 2 years ago

AADHAR OR FOOD SECURITY CAN BE GOOD IF THEY ARE IMPLIMENTED CORRECTLY. PROBLEM WITH CONGRESS IS IMPLIMENTATION. HE MAY USE IT FOR THE GOOD OF THE PEOPE LIKE THE EARTHQUAKE DISASTE WAS USED FOR RECONSTRUCTION.

Sandeep Khurana

In Reply to Sandeep Khurana 2 years ago

Typo regretted. Please read as- SC endorsing critics of Aadhar and reversing Govt stand.....

Sandeep

In Reply to Sandeep Khurana 2 years ago

To understand what I meant by moneylife campaign you might have to through the archive of moneylife campaign about aadhaar before, during and after elections. About implied assumption I don't care whoever is at powerseat (NDA or UPA)but it was just in context of validity of need to have a unique identity management system that a country like India needs very badly to have an effective governance system in place so there is no question of any implied assumption here.

Kinshuk

2 years ago

Its too early to judge someone's tenure in 3 months of time. Have patience Sucheta ji.
Rome was not build in a day.

pragnik

2 years ago

Sucheta di,
This article is ridiculous even for an ardent fan of yours like me.

As a Modi voter, I gave him 60 months and expect a report card against his promises at the end of his term. Let Modi try in his own ways in taking India to new heights.

Please dont instigate Modi fans by writing such a crap.

Thanks.

REPLY

Dayananda Kamath k

In Reply to pragnik 2 years ago

everybody is worried about modi succeeding. because if he succeeds all these people will not be able to carry on their nefarious activities of lining their pockets at the cost of nation.

Dayananda Kamath k

2 years ago

I think suchetaji herself is confused as to point out in which field modi supporters are confused. you can not change the thought process of the people overnight. for the past 60 years governance means giving something free or making people belive some thing free is being given. and all those who are opposing are actually not interested in india succeeding in its path to growth. any adversity can be converted into opportunity if it is understood properly. manmohan sigh was not talking nor taking action gandhi family was not interacting but busy with its own personal agenda. for almost 10 years. but modi is working for improvement then is it necessery to talk. the talking by charan singh, rajnaryan destroyed janata govt. we dont want repeat of the same.

Rahul Pandey

2 years ago

I am also disappointed with the progress so far and with MSM highlighting issues which put BJP/govt in bad light accentuates the pain.Going slow is a better strategy then go bang bang reversing everything the last govt did. It will have its own repercussion. I fully endorse that PM lacks a good team. but having said this I feel restlessness is of no use as we will get next opportunity in after 5 years only. Lets ignore the MSM they have their own agenda.

manoharlalsharma

2 years ago

BY REMOVING SMALL,SMALL HURDLES making a big ways toward AACHE...Din

sachin

2 years ago

Once Duryodhan was told to find one good person and Yudhishtir was asked to find one bad person.

Surprisingly both couldntfind any.

Whats your opinion Sucheta?

PC Raguraman

2 years ago

Is it too early to expect resolution for all relevant questions and concerns raised here ? Maybe someone close to him should take it up with him. We all believe that he can do all of these and bring better Governance than anyone else in the country.

Yerram Raju Behara

2 years ago

Out of 12oomn population only 100mn got aadhar agreeing that the claims are right. It is noticed that many of the initial hick-ups on aadhar issue have been rectified. Approval is reported for issue of another 10crore aadhar cards. There are some states that achieved near 100 percent and there are others which are at 10-15 percent.
Second, recent announcement of targeting the ineligible for subsidy is less expensive than targeting the eligible and in this direction Modi sarkar sought voluntary abdication of subsidy for gas from the 10mn top ineligible. Why not the entire Parliament with just 5% exception that fall under crorepathi group voluntarily declare on the floor that they are all out of the gas subsidy and all other subsidy programmes of the Government? This would pave the way for many of the NDA legislators to follow suit and also usher in purging bad governance from the rulers themselves.

Nagesh Kini

2 years ago

That the Modi sarkar meekly caves in to a less than 10% effective opposition on FDI in insurance and to a mob sitting outside the HM's residence on UPSC and English is enough to indicate that it is turning to populism.
Instead the 2014 Union budget should have been more forthright in rationalizing and simplifying the tax laws and not for sundry Rs.50,000 enhancements in basic thresholds and housing loans and doling out Rs.50/100 crores in all kinds of schemes.
Nothing is said about mopping up the black money and taxing the super rich both of which are essential parts of the budget exercise which is nothing short of continuing the UPA exercise in a cut-n-paste job to put old wine in new bottle - making it a damp squib!

Fortnightly Market View: Keep the Faith

A buy-the-dip market is headed for a dip

 

Over the past two weeks, the market has...

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