PNB SCAM - RBI NEEDED TO BE TUFF
The PNB scam made many people feel that we as a citizen have no option than to choose a better evil. Evil cannot be graded as good, better and best. Evil is evil. What are politicians need no definition. Critical attitude to question the govt on deliverance may only force the govt in power to mend their ways. Total bhakti allows the govt to sit relaxed as is the case in reference with this govt. RBI questioned and issued notices twice against such LOU transactions way back in August 2016. Bank cannot issue LOU for a period more than 3 months. Here in PNB scam case multiple LOUs were issued for a period of one year. The fact remains the Finance Ministry ignored the RBI objections. Now the PMO also has no answer.
Moreover LOUs were issued one after the other on behalf of PNB to offset the payment through Society of Worldwide Interbank Financial Telecommunication, or SWIFT. PNB sources say the bank isn’t fully integrated on a Core Banking System (CBS) which could have immediately detected the discrepancy. CBS is a back-end system that processes daily banking transactions, posting updates to accounts and other financial records. It is a centralised software that keeps all records across branches and is capable of generating alerts over any undue activity. Is the whole country blaring with the digital India as mere sloganeering? Why the bank did not update the software? Is it not mandatory as per banking norms? Are there other banks too which have not updated their software to integrate SWIFT with CBS?
But RBI did question PNB and informed the Finance Ministry of issuance of multiple LOUs of 12 months instead of three by the bank and thus flouting the norms. No investigatory action initiated by the vigilance department, the RBI, the PNB, the Finance Ministry, the PMO -- the govt in particular. Hence as a democratic citizen we need to pass the message to the ruling govt that we are watching their activities with a watchful and an alert eye. We should not give them the room for complacency. That is all we can do. In the cases of Billa Ranga and Nirbhaya rape-cum-murder public wrath and anguish forced the govts in power for speedy fast track trials and punishments and amendment in law. This is what we all must do as a citizen. Not bhakti.
Moreover LOUs were issued one after the other on behalf of PNB to offset the payment through Society of Worldwide Interbank Financial Telecommunication, or SWIFT. PNB sources say the bank isn’t fully integrated on a Core Banking System (CBS) which could have immediately detected the discrepancy. CBS is a back-end system that processes daily banking transactions, posting updates to accounts and other financial records. It is a centralised software that keeps all records across branches and is capable of generating alerts over any undue activity. Is the whole country blaring with the digital India as mere sloganeering? Why the bank did not update the software? Is it not mandatory as per banking norms? Are there other banks too which have not updated their software to integrate SWIFT with CBS?
But RBI did question PNB and informed the Finance Ministry of issuance of multiple LOUs of 12 months instead of three by the bank and thus flouting the norms. No investigatory action initiated by the vigilance department, the RBI, the PNB, the Finance Ministry, the PMO -- the govt in particular. Hence as a democratic citizen we need to pass the message to the ruling govt that we are watching their activities with a watchful and an alert eye. We should not give them the room for complacency. That is all we can do. In the cases of Billa Ranga and Nirbhaya rape-cum-murder public wrath and anguish forced the govts in power for speedy fast track trials and punishments and amendment in law. This is what we all must do as a citizen. Not bhakti.
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