Mumbai: India's banking system is not as strong as expected. An RBI report shows that over 30 banks have failed to follow or enforce various prescribed rules and guidelines. CNBC-TV18 has accessed the report of the audits instigated by the RBI after the Cobrapost expose, which shows that 30 banks, whether from the Public Sector, the private sector, or Foreign, have not followed the prescribed rules.
It doesn't matter whether it's a banking giant like the SBI, the Punjab National Bank, Citibank, Kotak Mahindra Bank and Standard Chartered, or a smaller bank like the Central Bank, Development Credit Bank and Indian Overseas Bank, Know Your Customer norms have been violated at multiple instances by each of the 30 banks audited.
One major finding is that bank systems did not flag or throw up alerts when multiple Demand Drafts worth Rs 50,000 were issued to the same person, sundry deposits of over Rs 50,000 were opened to issue gold coins and Demand Drafts and in multiple transactions of Rs 9.9 lakh by a single party on a single day, to avoid the Rs 10-lakh threshold.
The RBI report also shows that some banks failed to generate Cash Transaction Reports and Suspicious Transaction Reports due to the absence of Unique Customer Identification Number. For instance, Bank Of Baroda had 257 customer Ids for one customer. ...
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11:54 AM, May 30, 2013
As many as 23 public and private sector banks and insurance companies were on Monday accused of "running a nation-wide money laundering racket" by online portal Cobrapost, prompting the Finance Ministry and regulator IRDA to initiate independent investigations into the matter. ...
11:31 PM, May 06, 2013
New Delhi: As many as 23 public and private sector banks and insurance companies were on Monday accused of "running a nation-wide money laundering racket" by online portal Cobrapost, prompting the Finance Ministry and regulator IRDA to initiate independent investigations into the matter. In its second expose, Cobrapost accused country's leading banks and insurance companies of "running a nation-wide money laundering racket, blatantly violating laws of the land". Those named...
09:48 PM, May 06, 2013
Special Investigations website Cobrapost has revealed that 23 banks and insurance companies have been engaged in money laundering. Among the 23 banks involved are mostly PSU banks including some big names like the State Bank of India, Bank of Baroda, Punjab National Bank, Canara Bank, IDBI, Oriental Bank and Dena Bank. Aniruddha Bahal, editor-in-chief, Cobrapost.com, joined IBNLive readers for an interaction on the matter. Q. Hats off to you and...
06:39 PM, May 06, 2013
New Delhi: Special Investigations website Cobrapost has revealed that 23 banks and insurance companies have been engaged in money laundering. Among the 23 banks involved are mostly PSU banks including some big names like the State Bank of India, Bank of Baroda, Punjab National Bank, Canara Bank, IDBI, Oriental Bank and Dena Bank. Cobrapost editor Aniruddha Bahal claims that both banks and the insurance companies flouted the Foreign Exchange Management...
10:43 AM, May 06, 2013
Delhi: The Supreme Court on Monday ordered three nationalised banks associated with Nimbus Communications and the BCCI to deposit within 15 days the sum of Rs 400 crore after the Indian cricket board had filed an Special Leave Petition (SLP) regarding the scrapping of the broadcast deal with Nimbus citing the non-payment of dues owed for cricket coverage. The three banks - Punjab National Bank, Indian Bank and Union Bank...
06:35 PM, Apr 15, 2013
Amid moderation in economic growth, Finance Minister P Chidambaram is likely to prod banks to step up lending at a meeting with heads of public sector banks on March 18. ...
12:06 PM, Mar 10, 2013
New Delhi: State-owned Punjab National Bank (PNB) on Monday slashed interest rates on home loan and car loans by up to 0.5 per cent. In the housing loan segment, rate has been reduced by 0.25 per cent while interest rate on car loans has been slashed by 0.5 per cent effective from Monday. The decision to lower rate comes within days of Finance Minister P Chidambaram asking PSU banks to...
06:43 PM, Sep 03, 2012
Patna: A total of Rs 1,813 is lying unclaimed in a bank account that India's first president, Rajendra Prasad, opened a few months before he died. Rajendra Prasad opened his account in Punjab National Bank's Exhibition Road branch in Patna on October 24, 1962, a few months before he passed away, said a bank official. For 50 long years, the Punjab National Bank has kept the account alive, the bank...
06:06 PM, Jul 04, 2012
Patna: A total of Rs 1,813 is lying unclaimed in a bank account that India's first president, Rajendra Prasad, opened a few months before he died. Rajendra Prasad opened his account in Punjab National Bank's Exhibition Road branch in Patna on October 24, 1962, a few months before he passed away, said a bank official. For 50 long years, the Punjab National Bank has kept the account alive, the bank...
06:06 PM, Jul 04, 2012
New Delhi: A major fire broke out in a building housing Punjab National Bank in New Delhi's Parliament Street on Wednesday. Although many people were trapped inside the building but fire officials managed to rescue all, and there were no casualties. Twenty-five fire tenders were rushed to the spot and fire was brought under within an hour. The six-storey building is in the heart of Delhi and in the vicinity...
05:31 PM, May 23, 2012
Guwahati: At least two people have been injured in a grenade blast in Guwahati. The blast took place near Zoo Road outside a branch of Punjab National Bank in Guwahati at around 6:20 PM. Eyewitnesses claimed that the grenade was thrown from a Tata Safari. The injured have been taken to the hospital. Police have cordoned off the area and have started their investigations. The Union Home Ministry said that...
06:48 PM, Feb 28, 2012
New Delhi: The Finance Ministry is working out the financial implication of the Supreme Court judgement to cancel 122 telecom licences on the banking sector. "We have to see the implication. Officers are working on the impact of judgement on the banks... We will soon have a clear picture," a senior finance ministry official said. Several lenders including the State Bank of India, ICICI Bank, Punjab National Bank and IDBI...
04:54 PM, Feb 02, 2012
The change in sentiment is palpable on Dalal Street. Just two months ago, stock market pundits were vying with each other to assign aggressive ‘fair value’ targets to BSE Sensex and NSE Nifty. The projected earnings of Sensex stocks in 2011-12, in the range of Rs. 1,250-1,275 were quickly discounted into the price and people started talking about profitability expectations for the following year, 2012-13. But the warning signs were...
10:45 AM, Jan 04, 2011
New Delhi:The government on Thursday said the income tax department would look into the tax issues relating to the housing loan scam racket. Meanwhile, the deadline for the notices issued by the CBI to 16 companies who allegedly received undue favours in the multi-crore housing loan scam ends on Thursday. A day after the CBI arrested top public sector bankers, Punjab National Bank said that the bribery case is a...
09:51 AM, Nov 25, 2010
Base Rate is touted as a transparent system and it will serve as the minimum rate a bank can charge its customers. ...
12:29 PM, Jul 01, 2010
RBI moves to inject funds into system, signaling soft interest rate regime. ...
01:55 PM, Feb 02, 2009
The company is to cut PLR by 50 bps from February 1. ...
09:07 PM, Jan 30, 2009
National bank's new rates to be effective from January 1, 2009. ...
01:44 PM, Dec 29, 2008
The hackers allegedly siphoned off Rs 1 crore 66 lakhs from an exporter. ...
06:53 PM, Oct 23, 2008
