20% Jan Dhan accounts lying dormant: Minister
Almost 20 per cent of the total 31 crore Jan Dhan accounts are lying dormant, the government said on Thursday.
 
An estimated 31.20 crore Jan Dhan accounts with an aggregate deposit balance of over Rs 75,000 crore were opened till February, out of which 25.18 crore (or 81 per cent) were operative, Minister of State for Finance Shiv Pratap Shukla told the Rajya Sabha in a written reply to a question.
 
This means that over 6 crore accounts -- or 19.29 per cent -- opened under the Pradhan Mantri Jan-Dhan Yojana (PMJDY) are lying dormant.
 
The Minister added that till February, about 59 lakh (1.9 per cent) Jan Dhan accounts had been closed since the launch of the scheme. 
 
"Jan Dhan accounts are closed as per the request of account holder. Some of the Jan Dhan accounts are closed due to conversion into normal savings account as per request of the account holder. 
 
"In some cases, accounts are closed due to account holders having multiple accounts in their name in the same bank," he added.
 
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
 

 

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COMMENTS

Bapoo Malcolm

6 months ago

This is what happens when the incapable try to impress the unknowing with unprepared gimmicks to garner incalculable votes leading to unlimited damage.

Another bank fraud of Rs 824 crore involving Chennai jeweller
In yet another fraud played on banks, a Chennai-based jeweller Kanishk Gold Pvt Ltd (KGPL) has been accused of defrauding a consortium of 14 banks led by the State Bank of India (SBI) to the tune of Rs 824.15 crore in the form of loans that have now been declared as non-performing asset (NPA).
 
It is apprehended that the Directors of the KGPL, Bhoopesh Kumar Jain, and his wife Neeta Jain may have fled the country.
 
Unlike the scam involving diamond jeweller Nirav Modi and Mehul Choksi of the Gitanjali Group worth Rs 13,540 crore, in which Letters of Undertaking (LoUs) were used, the KGPL allegedly resorted to falsifying records and financial statements to get loans from the banks over a 10 year period beginning 2008. 
 
Taking cognizance of SBI complaint in January this year, the Central Bureau of Investigation (CBI) on Wednesday filed an FIR against the KGPL, its directors, its auditors Tejraj Achha, Ajay Kumar Jain, Sumit Kedia and other unknown persons.
 
The agency also conducted searches at KGPL's office as well as official and residential premise of other accused persons at various places in Chennai. 
 
"A case has been registered in the bank fraud. The accused persons have been contacted and asked to join investigation," said CBI spokesperson Abhishek Dayal.
 
The SBI, which tops the list with Rs 240 crore of loans, is followed by Punjab National Bank (PNB) (Rs 128 crore), Bank of India (Rs 46 crore), IDBI (Rs 49 crore), Syndicate Bank (Rs 54 crore), Union Bank (Rs 53 crore), Uco Bank (Rs 45 crore), Central Bank (Rs 22 crore), Corporation Bank (Rs 23 crore), Bank of Baroda (Rs 32 crore), Tamil Nadu Mercantile Bank (Rs 27 crore), HDFC (Rs 27 crore), ICICI Bank (Rs 27 crore) and Andhra Bank (Rs 32 crore).
 
In its complaint, the SBI cited a forensic audit conducted into the accounts of the company and found that the KGPL and its directors in collusion with the statuatory auditors had been misrepresenting and falsifying records with a clear criminal and malafide intent to cheat and defraud the banks. 
 
The KGPL was accused of showing a rosy picture since 2009 for the purpose of availing credit facilities from the bank and thereby committed criminal breach of trust and cheated the lenders. 
 
"The facts and circumstances and the admission by the Managing Director of the company also confirms the removal of the stocks secured to the lenders without the knowledge of the lenders and thereby committed criminal misappropriation of secured assets and cheated the lenders.
 
"It is also revealed that the KGPL and its Directors have diverted the funds detrimental to the rights and interests of the banks. The account has been classified as the NPA as per the extant guidelines of the Reserve Bank of India (RBI) by all the lenders of the consortium," said the complaint by G.D. Chandrasekhar, General Manager, SBI Mid Corporate Regional Office, Chennai. 
 
The forensic audit revealed that the statutory auditors and stock auditors had failed to record the deficiencies in the financial records and asset registers of the company which have adversely affected the banks interests. 
 
The forensic audit also revealed various discrepancies in the form of over valuation of the stocks and incorrect quantity of stock in the stock valuation workings records maintained by the company. The company had not maintained proper records for the movement of goods among other things. 
 
The total loss to the banks due to the fraud is to the tune of Rs 824.15 crore (outstanding as on December 12, 2017) plus accrued interest from January this year. The security available with the bank to cover the loss is to the tune of around Rs 158.65 crore being the realisable value of the immovable properties, plant and machinery charged to the lenders. 
 
The SBI complaint said in the joint lenders forum meeting on November 8 last year it was decided to proceed with the filing of complaint with the CBI after declaring the loan account as fraud. 
 
The complaint said sign of sickness was noticed in the company delayed servicing interest for March 2017 in respect of eight members banks.
 
Further, the complaint said, interest was not paid for all the member banks for April 2017. The promoter was unavailable for follow-up. When the stock audit was initiated in April 2017 for the proceeding quarter, the KGPL did not facilitate stocks and receivables audit process. 
 
Subsequently, in May last year, consortium members visited the corporate office, factory and showrooms and found that there was no activity. 
 
On the same day, Bhoopesh Kumar Jain gave a letter admitting falsification of records since 2009 and removal of the stocks secured to the lenders. 
 
Joint inspection was again conducted and it was observed that there was no activity and no stock in the factory. The showrooms at the other centres were also found locked during visits by consortium members. 
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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COMMENTS

Ramesh Poapt

6 months ago

lagta hai samudra manthan se zaher nikalna shru hua hai!
shankar kaun banega? aam admi-janta?

The Banks Board Bureau seeks wider engagement with government
The Banks Board Bureau headed by former CAG Vinod Rai has sought a wider mandate and a greater organic link with the government to provide greater utility on matters of governance and performance of public sector banks (PSBs).
 
In a compendium of recommendations published on its website, the Bureau sought from the government the mandate to engage with various stakeholders and offer advice to ensure that the PSB consolidation is least disruptive.
 
Seeking dialogue with the Finance Ministry, it said that without a greater interaction with the Ministry, the Bureau was merely functioning as an appointment board.
 
"If the government does indeed desire to make the Bureau address issues of governance around PSBs in a holistic manner and make its output effective, there is need for an organic relationship between the government and the Bureau," it said.
 
The Bureau added that it had made various recommendations to address the root cause of the challenges presently faced by the PSBs but was not aware of the progress made in that regard and that there had been no further engagement with government.
 
It said that India now deserved a public sector banking system which could offer a long term sustainable growth rate "rather than a public sector which amplifies the excesses of the credit boom with extreme risk aversion during credit bust and the attendant reliance on the tax payer's funds".
 
"To make this happen requires reworking of nearly five decades of institutional structures and processes which was put in place with the nationalisation of banks. 
 
"It is very much in the realms of possibility to rework the same while the government continues to retain at least 51 per cent of the shareholding in PSBs recognising their strategic importance in India's developmental framework," it said.
 
To work in that direction, the Bureau sought the mandate to provide an independent feedback to the Finance Minister at least on a half yearly basis on the degree of implementation of its various recommendations related to governance, reward and accountability framework. 
 
"In order to provide the independent feedback, the Bureau will engage with the boards of PSBs, the Department of Financial Services and the regulatory and supervisory functions of the Reserve Bank of India," it said. 
 
It also sought the mandate to present its quarterly assessment to the Finance Minister on the relative performance, the respective capital assessment and growth assessment of each public sector bank.
 
"These mandates are being suggested to further reinforce and institutionalise the zero interference policy of the government," it said.
 
In a letter dated July 27, 2017, the Bureau sought a meeting with Finance Minister Arun Jaitley to discuss these matters and it was still awaiting that meeting.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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