Corruption in Banking - Inputs Needed on Root Causes
Below are the key corruption issues in banking sector as highlighted by you. Some of them provide good insight into state of things. Kindly review them and help identify key root causes behind these.
We look forward to your inputs and then working together to affect change in the banking system through awareness creation with the associated authorities and regulators.
Corruption in Banking - Key Issues
1. Floating money in banks is being used by bank staff to invest in small finance companies privately to earn extra cash for themselves
2. Non-recoverable loans given by the government banks to known bad businesses (in exchange for kickbacks) eating away the huge profit of the banks
3. Asking for bribes for approving project loans is being done regularly. They usually name an auditor who tells the amount
4. They also pick flaws in the proposal to create a problem and then ask for the amount
5. Valuations for property is another area of corruption
6. The bank manager suggests the valuer you should approach. The valuer's fee has a cut for the manager. If you also do a deal with the valuer, your valuation and loan gets accepted faster
7. Banks give a locker only if we buy one of their policies or make a FD
8. Corruption also exists in posting /transfers at all levels
9. It has become a common practice among several banks that they route all paper work starting from Loan application filling to project report preparation to an agent, who will collect some fees as a percentage of loan sanctioned and the same is shared among that agent and bank officials
10. Bribe givers compete between themselves to offer bribe and corner loans with less or no collateral
11. CA firms develop relations with the bank’s credit officials and then exchange favours
12. Many branch managers provide cheque discounting facility without permission from Head Office or Divisional Office and get cheques deposited to improve their business
13. Banks verify and make loan process hell for agriculture and small consumer loans but large corporate loans are extended for chronic defaulters more
We look forward to your inputs and then working together to affect change in the banking system through awareness creation with the associated authorities and regulators.
Corruption in Banking - Key Issues
1. Floating money in banks is being used by bank staff to invest in small finance companies privately to earn extra cash for themselves
2. Non-recoverable loans given by the government banks to known bad businesses (in exchange for kickbacks) eating away the huge profit of the banks
3. Asking for bribes for approving project loans is being done regularly. They usually name an auditor who tells the amount
4. They also pick flaws in the proposal to create a problem and then ask for the amount
5. Valuations for property is another area of corruption
6. The bank manager suggests the valuer you should approach. The valuer's fee has a cut for the manager. If you also do a deal with the valuer, your valuation and loan gets accepted faster
7. Banks give a locker only if we buy one of their policies or make a FD
8. Corruption also exists in posting /transfers at all levels
9. It has become a common practice among several banks that they route all paper work starting from Loan application filling to project report preparation to an agent, who will collect some fees as a percentage of loan sanctioned and the same is shared among that agent and bank officials
10. Bribe givers compete between themselves to offer bribe and corner loans with less or no collateral
11. CA firms develop relations with the bank’s credit officials and then exchange favours
12. Many branch managers provide cheque discounting facility without permission from Head Office or Divisional Office and get cheques deposited to improve their business
13. Banks verify and make loan process hell for agriculture and small consumer loans but large corporate loans are extended for chronic defaulters more
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I have only one Question..... .... is Govt or Political leaders really don't know about how to stop the corruption / how to make the corruption free country ????? more
Nov 15
I am in Chennai,Ekkattuthangal;can I look forward to like minded people to join as a team and work out an action plan to interact with Govt Depts on a priority basis so that we can effectively monitor the Reach of benefits to the needy,from Govt. Indeed lot of people should have actively supported the idea of AAM ADMI PARTY in TN ;make out a strategy and work on that so that we could get an opportunity to represent any one constituency and work for implementation of various good Governance measures! more
Jul 13
Those individual who are authorised for disbursement are not responsible for recovery hence this situation. Recovery in the form of emploment will correct the system. Non payment by individual should bar them and family from getting fresh loan in future. more
Jul 10
The system shall ensure free and fair methodology for executing their duties for the banking staff without influence of high profile persons and politicians. Once this is curbed the system will automatically gets corrected. The frauds committed by the High Profile persons are the causative factor and the root cause. Once this is curbed the moral values will be the auto mechanism for prevention of corruptions and every person working in the bank will become a vigilance officer by himself. The need of the hour is to increase the moral values in the system. This should start from Head. more
Jul 10
CA firms are a big cause of corruption in the Entire financial system including banking. more
Jul 10
