Regulations
RBI slaps Rs30 lakh fine on ICICI Bank, Rs55 lakh on ING Vysya

ICICI Bank and ING Vyasa Bank are fined for their failure to obtain adequate documents for opening accounts, failure to carry out sufficient customer identification procedures and failure to examine control structure of entities

 
Mumbai: The Reserve Bank of India (RBI) has slapped a penalty of Rs30 lakh on ICICI Bank and Rs55 lakh on ING Vysya Bank for violating certain norms related to know your customer (KYC) and anti-money laundering (AML), among others, reports PTI.
 
"The penalties have been imposed on these banks for contravention of various directions and instructions issued by the RBI on know your customer norms/anti-money laundering standards/combating of financing of terrorism /Prevention of Money Laundering Act, 2002," RBI said in a statement.
 
These include "failure to obtain adequate documents for opening accounts, failure to carry out sufficient customer identification procedures, failure to examine control structure of entities." 
 
The banks also failed to ascertain the identification of natural persons behind entities, to carry out effective enhanced due diligence, to carry out appropriate risk categorisation, besides delaying filing of the Suspicious Transaction Reports, RBI said.
 
On a careful examination of the banks' written replies to the show notices RBI had issued and the oral submissions made during the personal hearings, the RBI said "the violations were established and the penalties were accordingly imposed".
 

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COMMENTS

Vikas Gupta

5 years ago

RBI should also probe Indusind Bank for violating Banking as well as SEBI/AMFI rules as the Bank is adopting unethical practices to procure the MF Business. The Bank is snatching the MF Business of other intermediatories by using its Clearing Department.

US presidential polls: Debating the debates

One debate does not mean that the argument is lost. Both Ronald Reagan and George W Bush came roaring back after losing a debate, the onus is now on President Obama to do the same  

 
Two events occurred—one before the presidential debate in Denver, Colorado, and one after, both of which will cushion the subdued performance of President Obama in the debate and will give the president’s supporters heart as they get on with the last month of campaigning.
 
The event before the debate was the press reports which showed that there was a run in Tehran on the Iranian currency, the rial, and that the currency was quickly loosing value. This showed more clearly than before that President Obama’s policies on Iran, which were relying on sanctions, were actually biting and this was concrete proof of the same. There were crowds in Tehran, a mini stampede and a run on the banks was altogether possible. This seemed to be a significant foreign policy victory for the president. Of course, it will be debated that it was the Iranian people that it was harming and not the Iranian government but any way you cut it, this will help President Obama in the run up to the election.
 
The second point is that two days after the debate the unemployment numbers came out and they were 7.8%, which seemed to give President Obama a big boost as the unemployment rate fell below 8% for the first time since the President Obama had taken office. This clearly showed that the economy was headed in the right direction. The 8% number was psychologically an important number for both campaigns and the fact that the number 8% is no more front and centre will help president Obama.
 
This is something which will actually give President Obama some much-needed momentum and going by reports in the New York Times there was a rush of fund raising. Jack Welch the former head of General Electric tweeted that these Chicago guys will do anything to win the election. That they cannot debate so they will influence the unemployment numbers. There were many such conspiracy theories out there but no one was really taking them very seriously.
 

 

Read more articles on US presidential elections, here. 

 
However, having said all that Romney’s performance in the debate was robust and Obama’s subdued. There was Romney in a red tie girding for battle and there was President Obama in a blue tie, who in the words of Democratic Pundit James Carville, was hoping that he was in some place other than debating Romney. The consensus was that President Obama had taken a conscious decision to stay above the fray and had let Governor Romney go unchallenged on many issues. Was President Obama’s strategy based on the fact that he was ahead by four to five percentage points in the national polls and up to ten percentage points in some swing states, because if that was the case the strategy backfired as his leads in opinion polls disappeared like winter snow under a blazing sun. 
 
The point where I would really fault the president is that he did not reply to Governor Romney’s allegation about President Obama having taken $780 billion out of medicare and put them in Obama Care. Actually I thought that President Obama’s defence of Obama care was quite robust and cogent and the best he had made. It got Governor Romney saying that his plan (whatever that is) also had a safeguard about pre-existing conditions though that was found not to be true.
 
However the president was rather restrained when asked about his plan about the economy in the next four years and his strategy seems to have been few features, apart from more education for job training. He did not present a cogent plan for creating jobs. The congressional budget office has said that whoever is the president, 12 million jobs will be created over the next four years and surely the president could have pointed that to counter Governor Romney’s promise of creating twelve million jobs.
 
The Pundits felt that Obama should have gone after Romney about the 47% comment but I felt as it was already out there and everyone knew it, there was no need really for that.
 
A quick poll on CNN after the debate showed a 67% to 25% Romney-Obama win-lose rate. I frankly was surprised. I thought Obama had done better than that.             
 
On the other hand Governor Romney defended his tax cuts and said that yes he would not impose one more dollar of revenue as the growth rate will take care of the revenue. He gently mocked President Obama by saying that he would have to get a new accountant as he did not know that outsourcers got tax breaks. The president did not come roaring back on that one. 
 
But one debate does not mean that the argument is lost. Both Ronald Reagan and George W Bush came roaring back after losing a debate. The onus is now on President Obama to do the same. The onus is also on Vice-President Joe Biden to hold his own against Paul Ryan in the vice-presidential debate. 
 
(Harsh Desai has done his BA in Political Science from St Xavier's College & Elphinstone College, Bombay and has done his Master's in Law from Columbia University in the city of New York. He is a practicing advocate at the Bombay High Court.)
 

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Rajan Alexander

5 years ago

"The Pew poll is devastating, just devastating. Before the debate, Obama had a 51 - 43 lead; now, Romney has a 49 - 45 lead. That's a simply unprecedented reversal for a candidate in October. Before Obama had leads on every policy issue and personal characteristic; now Romney leads in almost all of them. Obama's performance gave Romney a 12 point swing! I repeat: a 12 point swing." (Daily Beast)

In the end, its all about body language - Romney looks Presidential and Obama a tired President who looks the fight went off his life.

Opinion Polls tends to traditional under-estimate Republican support. Secondly, in terms of turnout, Republican voters hold the edge. The third is the most heartening for the Republicans - undecided voters accounting for around 8% of votes, 2/3rds broke for Romney

But I agree, it is too early to write off Obama and I am sure he will give one hell of a performance on the 16th - the last debate.

Tomorrow's VP debate may not change much the situation - people do not take it seriously as the Presidential debate.

As Climate sceptics we are banking on a 3-0 whitewash of the Democrats - with Republicans holding on to the Congress; and snatching both the Senate and Presidency from the Democrats.

A Romney-Ryan ticket is our best hope to bring this climate change scam to a quick end!

Kejriwal asks for white paper, SIT probe into Haryana government, DLF and Robert Vadra nexus
Arvind Kejriwal claims that a white paper would show that the transactions between DLF and Robert Vadra are not transactions between two friends but a consideration for the favours showered upon DLF by the Haryana government
 
Anti-corruption activist Arvind Kejriwal has alleged that the Haryana government has showered immense benfits on the DLF group, which in turn has offered the same benefit to Robert Vadra, son-in-law of Congress President Sonia Gandhi. While making more allegations, the anti-corruption activist demanded a white paper on relations between the Haryana government and the DLF group and formation of a Special Investigation Team (SIT) to probe the matter.
 
“A white paper would show that the transactions between DLF and Robert Vadra are not transactions between two friends but a consideration for the favours showered upon DLF by the Haryana government,” Kejriwal said. 
 
In his second round of allegations, the India Against Corruption (IAC) activist alleged that the Haryana government vide notifications on 6 December 2006 and 9 March 2007, allowed DLF to use 30 acres of land, which was reserved for construction of a hospital, for its Special Economic Zone (SEZ). This decision was reversed by the Punjab and Haryana High Court, while passing on strictures against the Haryana government, Kejriwal said.
 
He said, Robert Vadra was a majority stakeholder in DLF SEZ for about a year.” DLF SEZ Holdings Pvt Ltd was incorporated on 2 February 2007. Next year on 13 October 2008, North India IT Parks Pvt Ltd (a Robert Vadra group company) bought almost 50% stake in DLF SEZ. However, in 2009 the stake was sold back to DLF. What role did he play in that one year when DLF SEZ was in Mr Vadra’s control?” Kejriwal asked.
 
Earlier, DLF refuted all allegations, especially about providing unsecured loans to Vadra. However, Kejriwal said Real Earth Estates Pvt Ltd, a Vadra group company has shown Rs5 crore as loan from DLF in its balance sheet for 2009-10. During the same year, DLF gave Rs50 crore to Sky Light Hospitality Pvt Ltd, another Vadra group company. According to DLF, this company Sky Light Hospitality sold its land at Manesar for Rs58 crore to DLF and the amount of Rs50 crore was paid as advance. 
 
“Interestingly, this Manesar land was bought by Vadra’s Sky Light Hospitality just a year back for Rs15.38 crore. How did the price of the land soar to Rs58 crore? DLF claims that it made an advanced payment and took possession of the land in 2008-09. This is false. The balance sheet of DLF for FY11 shows that the advance made by the company and the land, both were in possession of Sky Light Hospitality. This means DLF gave 90% of the deal amount as advance and let it remain with the seller for over two years, that too when the company itself was borrowing money from several sources at high interest cost. Another surprise is that Vadra’s Sky Light Hospitality used the money received as advance payment to buy 50% stake in DLF's own hotel,” Kejriwal said.
 
Here are the details of allegations made by Kejriwal along with supporting documents...
 

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COMMENTS

MOHAN

5 years ago

POOR ROBERT VADRA. HE IS A 'BANANAMAN' IN 'MANGO' REPUBLIC !

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