Wednesday, November 26, 2014

Role Of Bank Staff, Borrowers And RBI Officials


I like to salute RBI Governor Mr. Rajan who has boldly admitted the truth of public sector banks. I have been saying since long that  these banks have cleverly , safely and dangerously concealed a scam which if exposed in totality may prove to  be greater scam than all other scams exposed so far. It is he who has admitted that that the amount written off by banks as bad debts in the last five years would have been enough to fund the education of 15 lakh of the poorest children in the top private universities of the country, all expenses paid. And if bank can convert  existing restructured and existing bad loan accounts into standard accounts and if they can recover full amount from bad borrowers  the fund released will be able to afford expenses of another one crore student. He has rightly stated that only by proper management of bank's functioning,  recruitment  and promotion processes ,financing process  and that of the economy , one can dream of low interest rate regime , not merely by changing monetary policy frequently  

I will not hesitate to say that Governments of the past six decades have exploited RBI and has left no stone unturned to loot the banks as also to the economy and to distribute the hard earned money as charity for their self interest, for serving political purpose and to remain in power not by real performance but by using banks as their paternal property. Public sector banks have been used by Congress Party and others in the past just to enrich and enhance their personal fortune and to serve their relatives, supporters  and friends.

Banks have been forced to conduct loan melas to disburse loans sacrificing quality of loaning process and banks have been forced to write off loans so that vote banks of ruling party is safe and become greater. Banks have been used to carry out all non -productive services like tax collection or salary payment or disbursing subsidy oriented loans under various government sponsored schemes or reckless branch expansion in the name of service area approach or PM Jan Dhan Yojana. Further to make the situation worse, banks have been directed and allowed by previous government to do non-banking business like insurance, mutual fund, demat etc. In this way banks sacrificed the safety of bank's core assets and wasted time in capturing insurance business from own customers. They could earn a few crores of rupees in commission on selling insurance policies  but they lost hundreds and thousands of crores of rupees by financing to bad borrowers or by neglecting monitoring loan asset or by writing off bad loans. There is a saying " Penny wise pound foolish"

To add fuel to fire , UPA government led by Congress Party used banks for financing hundreds and thousands of crores of rupees in the name of reformation, to conceal their failure in financial management  and to please big corporate houses . During pre-reformation era banks had to suffer loss in small loans and mid size loans and in reformation era banks are suffering loss in big corporate houses. When banks became partner of politicians , they also started exploiting bank's fund for promoting their own career and for making their friends and relatives richer. Altogether the outcome of such large scale loot and mismanagement is that banks are now suffering of uncontrollable load of Non Performing assets. More than 5% of total advances of PS banks are declared NPA whereas more than 20% are hidden NPA which will slowly crop up to destroy balance sheet , this is also a part of conspiracy of bankers as also that of GOI to save image.

It is disgusting ,disheartening  and deceptive that clever bankers as also clever politicians of UPA used to blame Global recession or economic slowdown or high interest rate regime or natural constraints to hide their corruption, to hide their failure in properly  processing , assessing and monitoring loans and loan created assets. It is fun and ridiculous that management of these PS banks always used to blame extraneous factors for their pitiable health of banks whereas under similar economic environment private peers continued to earn more and more profit, garner bigger and bigger volume of business and containing volume of NPA to barest minimum. And the astonishing fact is that USA has come out of Subprime crisis of 2008 , but banks in India are stilling blaming US crisis for their crisis.

And the shameful part is that RBI and GOI always used to concur with wrong logics given by PS banks and this forces one to believe that there was strong nexus among bankers, politicians and corporate houses which are now treated as defaulters. And the heart breaking party is that poor bank staff are now denied respectable wage hike on the excuse of rise in NPA and fall in profit. Let us se how  Modi Sarkar treat the sad story of banks.

The most perturbing part of the story is that banks are concealing mountain of NPA in their books of accounts and allowing defaulting borrowers to remove assets created by bank or wilfully delaying actions against defaulters to save corrupt bank officials. It is just liking a killing a woman to maintain her beauty or spraying scent on a dead body to keep environment filled with good smell. Businessmen are flourishing and leading luxurious life whereas junior or mid level bank officers are burning their body and mind in trying to recover the money from bad borrowers whose patrons were and are  top officials of bank or ministers of past government.

It is bankers who are allowing banks fund to be taken away by defaulters . GOI is also silent on dead legal machineries which cause adding fuel  to fire. Banks are burning and bureaucrats as also officials of various courts  are moving files from office to other for decades  or giving date after dates to postpone the degree for decades. Banks and babus of Government offices or police departments are not in a position to recover the money from bad borrowers or they do not want to recover to give a favour to defaulters. Birds of same feather are sitting in all important offices. Who will bell the cat?

It is lastly taxpayers money which is sacrificed in writing off of bad loans or in giving concessions to bad borrowers. There may be genuine reasons too in some cases of default but it becomes painful when on the plea of global recession, all bad borrowers are given relief punishing indirectly bank's true depositors (they are paid less interest on their savings), investors in bank's share ( they are given less dividend),tax payers ( they are subjected to high tax regime to increase government revenue) and lastly bank staff who are denied respectable wage hike.

Kudos to RBI Governor Mr. Rajan who has from time to time spoken the truth which is bitter for corrupt class of politicians, bankers and corporate houses. Lastly banks can be safe and secure only when there is reign of justice and rule of law is enforced in true spirit. And this culture will take the root only when true workers are recruited, good performers are only promoted , honesty is really awarded, true entrepreneurs are financed and finally reign of flattery and bribery is ended. All these need bold persons like Rajan in all spheres of banks and that of GOI. Again I salute him from core of my heart who is really doing something to save economy from disaster. Let us see how far he gets succeed in convincing current government.

Last but not the least, I always use to say that the culture of flattery and bribery prevalent in government offices , political domain and in banks is the root of all irregularities and all pains PS banks are suffering now or you may say India is suffering in the economic parameters. When a senior bank officer can become ED or CMD of a bank only by dint of flattery and bribery to ministers and top officials of RBI or MOF, same ED and CMD promotes the same culture of flattery and bribery in bank he or she joins as ED or CMD.

It is not only CMD of Syndicate bank who paid bribe for becoming CMD and whose marks in interview was inflated, but all officers in all ranks have to pay bribe or flatter to higher bosses for getting promotion to higher scale. RBI and GOI appear to be trying to change the promotion process for ED and CMD, but till now it appears nothing but old wine in new bottle. The need of the hour is to change entire promotion and recruitment system to strike at the root of all maladies and punish harshly all top officials who caused damage to fundamentals of banks.

The greatest tragedy and the most ridiculous part of bank management is that ED and CMD of each bank at the time of retirement or when he or she is on the verge of retirement or in last leg of his service is given unregulated and full powers to sanction loans to any one at his whims and fancies. If the loan goes bad after his retirement , he or she is not accountable and not punishable.

Here it is important to point out that there is guidelines in banks that a junior officer or mid level officer will not be given a sensitive posting during last six months or one year prior to his retirement. The logic behind such guidelines is that he or she cannot sanction loans to unscrupulous elements for earning bribe. But an ED or CMD or top ranked officials can be allowed to sanction tens and hundreds of crores of rupees during his last leg of service .

It means bank can stop a Branch Manager in junior or mid level of management from financing a few lac of rupees ( his delegated powers are normally in lacs only ) to small bad borrowers to earn bribe but can allow ED and CMD to sanction hundreds of crores of rupees to unscrupulous business men . Again it is Penny Wise and Pound Foolish.

Rajan slams banks for ‘hiding’ NPAs-Times of India-26th November 2014

MUMBAI: In his most hard-hitting speech against recalcitrant defaulters, Reserve Bank of India governor Raghuram Rajan has said that the amount written off by banks as bad debts in the last five years would have been enough to fund the education of 15 lakh of the poorest children in the top private universities of the country, all expenses paid. The governor said only Rs 30,590 crore of bad debt was recovered by banks through the debt recovery tribunals in FY14 from the Rs 2,36,600 crore claimed even as cases keep piling up.

"The sanctity of the debt contract has been continuously eroded in India in recent years, not by the small borrower but by the large borrower. And this has to change if we are to get banks to finance the enormous infrastructure needs and industrial growth that this country aims to attain," Rajan said.

The governor has been steadfast in his attack on non-cooperative defaulters.
The governor has been steadfast in his attack on non-cooperative defaulters.
"In India, too many large borrowers insist on their divine right to stay in control despite their unwillingness to put in new money. The firm and its many workers, as well as past bank loans, are the hostages in this game of chicken — the promoter threatens to run the enterprise into the ground unless the government, banks, and regulators make the concessions that are necessary to keep it alive," he said. The governor was delivering the Dr Verghese Kurien Memorial Lecture at IRMA, Anand on Tuesday.

The governor lashed out at banks for joining hands with borrowers in seeking relaxation in classifying some projects as "non-performing assets". "This is short-sighted, especially on the part of the banks. Today, the market does not distinguish much between non-performing loans and restructured loans, preferring to call them both stressed loans and discounting bank value accordingly," Rajan said.

"Mutilating Shakespeare, an NPA by any other name smells as bad! Indeed, because forbearance makes bank balance sheets opaque, they may smell worse to analysts and investors. The fundamental lesson of every situation of banking stress in recent years across the world is to recognize and flag the problem loans quickly and deal with them. So regulatory forbearance, which is a euphemism for regulators collaborating with banks to hide problems and push them into the future, is a bad idea," Rajan said.
Link Times of India

Better banking practices can lower rates: RBI Governor Raghuram Rajan-Economic times
Governor Raghuram Rajan has said bad behaviour by some unscrupulous
promoters was harming all industry and greater scruples would possibly do more
to bring down borrowing costs for entrepreneurs than monetary policy actions.
His statement comes at a time there is a rising clamour from industry for rate

However, the central bank is unlikely to cut rates, showed an ET
poll of bank economists. And while Finance Minister Arun Jaitley has batted for
lower cost of capital, he has also emphasised that the final decision has to be that of
RBI. Indian entrepreneurs should stump up more equity if they are keen on bank
loans in future, and industry lobby groups should bury thoughts of regulatory
forbearance to address rising loan defaults, Rajan said on Tuesday.

Some promoters find ways to take out the equity as soon as the project gets
going, so there really is no cushion when bad times hit," he told the audience
at the Verghese Kurien memorial lecture at IRMA, Anand.

"Lenders should insist on more real
equity up front, and monitor the project closely to ensure it stays in.
Promoters should not try and finance mega projects with tiny slivers of equity,"
Rajan said.

Fixing legal loopholes in the financial system — which helps
unscrupulous promoters game the system — will do a lot more to bring down
borrowing costs than monetary policy actions, the RBI governor said.

This can be done by introducing monetary incentives for members of Debt Recovery Tribunals that bring down the  duration of hearing of cases, a limit on number of stays that courts can grant
against recovery of loans, making appeals against DRT orders costly as well as
introducing a whole new bankruptcy regime. These steps, Rajan said, could change
the economic landscape.
Better banking practices can lower rates: RBI Governor Raghuram Rajan

 "I am not worried as much about losses stemming from business risk as I am
about the sharing of those losses — because, ultimately, one consequence of
skewed and unfair sharing is to make credit costlier and less available," Rajan
said. "Regulatory forbearance, which is an euphemism for regulators
collaborating with banks to hide problems and push them into the future, is a
bad idea. RBI opposes forbearance which simply pushes problems into the

Rajan has been pushing for an overhaul of the Indian financial system where
sclerosis has set in with so-called stressed assets (bad loans + restructured
assets) touching 10% of total assets of the banking system. Instead of
addressing recovery of loans, lobby groups seek forbearance. The Corporate Debt
Restructuring mechanism, under which interest rates are lowered and tenors
extended, is being abused in some cases with promoters not bringing in
Link Economic times

Reserve Bank may give banks more leeway to deal with bad loans

The Reserve Bank of India can give banks more flexibility to restructure distressed loans in a bid to steer funding towards cash-strapped infrastructure projects, Governor Raghuram Rajan said here on Tuesday.

Dr. Rajan, however, said the RBI would continue to ensure lenders flag and deal with problematic loans quickly, given the dangers to the financial system should banks engage in ‘ostrich-like’ behaviour of ‘hoping the problem will go away’.

Reviving investment and boosting infrastructure are two key objectives for Prime Minister Narendra Modi, who won elections in May promising to rekindle the faltering economy after two years of growth below 5 per cent.


A major factor slowing credit flows to infrastructure projects has been the amount of bad loans on banks’ books. Including restructured loans, stressed assets are estimated at Rs.6 lakh crore ($97 billion), or nearly a tenth of total loans.


“The RBI is exploring ways to allow banks more flexibility in restructuring,’’ Dr. Rajan said in a speech at the Institute of Rural Management here.
“This is a risk we are prepared to take if it allows more projects to be set on the track to recovery,’’ he said, without giving details of measures being explored.
Still, Dr. Rajan said the central bank would oppose any delay by banks to recognise bad loans.
About 45 per cent of stressed loans have already gone sour. The remainder is in the ‘restructured’ category, which means the loans have problems but banks only need to set aside minimal reserves.
From April next, new rules will abolish the ‘restructured’ category and prompt banks to chase customers for payment or set aside billions more reserves, once non-performing loans are recognised.
“The fundamental lesson of every situation of banking stress in recent years across the world is to recognise and flag the problem loans quickly and deal with them,’’ Dr. Rajan said.
“So, regulatory forbearance, which is a euphemism for regulators collaborating with banks to hide problems and push them into the future, is a bad idea.’’
Dr. Rajan also warned of the negative consequences of borrowers defaulting without suffering a financial hit as this raised the cost of loans across the financial system — reiterating his previous comments.
Dr. Rajan estimated that power loans were three percentage points more expensive than home loans due to banks’ concerns about recovering debts from these types of borrowers.
The central bank tightened rules against these defaulters in September.
‘Riskless capitalism’

Accusing some large borrowers of enjoying ‘riskless capitalism’, Dr. Rajan said such entities were responsible for making banks’ credit profile unhealthy and these big clients were in effect becoming ‘freeloaders’ in the banking system.
Dr. Rajan also said it was the taxpayers and honest borrowers who end up paying the price for losses suffered by state-run banks due to bad loans given to a few big borrowers.
A large borrower, whose loan has turned bad, should not be “lionised as a captain of industry, but justly chastised as a freeloader on the hardworking people of this country,” the RBI Governor said. Asserting that he is not against risk-taking, Dr. Rajan said in cases of any stress, the promoter threatened to run an enterprise to the ground, asking the government, banks and regulators to make necessary concessions to keep it afloat. “We have to ask if our system of credit is healthy.
Unfortunately, the answer is that it is not. The sanctity of the debt contract has been continuously eroded in recent years, not by the small borrower, but by the large borrower,” Dr. Rajan said. In scathing remarks on the misuse of the system by the large borrowers, Dr. Rajan said taxpayers and honest borrowers end up paying the price due to the excesses committed by large borrowers by way of losses to state-run banks and high pricing of loans.
“If the enterprise regains health, the promoter retains all the upside, forgetting the help he got from the government or the banks — after all, banks should be happy they got some of their money back!
“What I am warning against is the uneven sharing of risks and returns in enterprise, against all contractual norms established the world over — where promoters have a class of ‘super’ equity which retains all the upside in good times and very little of the downside in bad times,” Dr. Rajan said.
Dr. Rajan acknowledged that there was a growing restlessness in the society about such reckless behaviour of corporates.



'Stressed' banks may face lending curbs-Busiess Standard 26.11.2014

RBI cautions lenders with 20% stressed assets
The Reserve Bank of India (RBI) has asked banks facing excessive stress due to a rise in bad loans and restructured debt to beef up recovery efforts, failing which lending restrictions could be imposed.

According to the RBI, stressed assets include gross non-performing assets (NPAs) and restructured advances. According to latest finance ministry data, gross NPAs of public-sector banks stood at 5.32 per cent of their gross advances as of the end of September, compared with 4.72 per cent in March. Similarly, restructured loans as a percentage of total gross advances rose to 7.25 per cent from 7.17 per cent during this period.

According to sources, the RBI is mulling action in terms of limiting loan-sanctioning powers of banks with stressed asset ratios near 20 per cent. The regulator communicated its intention to banks during an annual financial inspection.

Kolkata-based United Bank of India (UBI), which reported a loss in the previous quarter, had faced lending restrictions in November last year - it was not allowed to lend more than Rs 10 crore to a single borrower.
A list prepared by the finance ministry to indicate stress level of public-sector banks shows that Central Bank of India has the highest level of stressed assets (20.49 per cent). It is followed by United Bank of India (19.7 per cent), UCO Bank (17.98 per cent), Punjab National Bank (17.94 per cent), and Punjab and Sind bank (17.75 per cent).

If write-offs are added to the figures, the level of stress will further increase.

During a meeting of bankers and finance ministry officials last week, the five most-stressed banks were also present. According to a note circulated by the finance ministry to chief executives of government banks, the average level of stress among public-sector banks was 12.57 per cent. "NPAs rose to 3.84 per cent as of March 2013 and further to 5.32 per cent as of Sept 2014 in respect of public-sector banks," the note said. According to the note, gems & jewellery, coal, and cement sectors had the biggest share of bad loans in the banking system.

"Today, the market does not distinguish much between non-performing loans and restructured ones, preferring to call both stressed loans and discounting bank value accordingly," RBI Governor Raghuram Rajan said in a speech at Gujarat's Anand on Tuesday. The context was ending regulatory forbearance on restructured assets.

Also Read How Bankers Borrowers and Politicians looot Banks

 While the RBI has proposed to end the leeway banks currently enjoy while recasting debt in terms of lower provisioning vis-à-vis bad loans, bankers have been demanding an extension of the forbearance for a year. The RBI wants all restructured loans to attract provisions in line with sub-standard assets; that is, 15 per cent for secured advances from April 1, 2015, compared with the five per cent applicable for standard restructured advances at present.

State-owned banks may lose Rs96K cr on coal block cancellations - Financial Express

Already grappling with stressed assets, public sector lenders could take a hit of Rs 96,484 crore due to the Supreme Court’s decision to cancel coal blocks to power projects.
“The impact of cancellation of coal block allotment on public sector banks due to likely stoppage of production of power plants is estimated at Rs 96,484 crore,” minister of state for finance Jayant Sinha said in a written reply to a question in the Rajya Sabha on Tuesday. He, however, did not clarify if all the Rs 96,484 crore loaned by banks to the projects may turn into bad debt if mining is stopped. “As per the information collected from public sector banks, the exposure of all PSBs to the power sector is Rs 5,82,469 crore,” Sinha said.
The Supreme Court in September had cancelled allocation of 204 coal mines that were given out since 1993 on grounds of irregularities.
- See more at:

Rajan Seeks More Power for India’s Banks Over Big Defaulters

Reserve Bank of India Governor Raghuram Rajan said banks should have more power to recoup money from defaulters to rebalance a system that’s skewed in favor of large companies.
The Indian credit system is unhealthy and rests on an uneven sharing of risks and profits that overprotects big borrowers and forces state-controlled banks to absorb losses in downturns without profiting in good times, Rajan said yesterday.

“The sanctity of the debt contract has been continuously eroded in India in recent years, not by small borrower but by the large borrower,” Rajan said at the Institute of Rural Management Anand, in India’s western state of Gujarat. “This has to change if we are to get banks to finance the enormous infrastructure needs and industrial growth that this country aims to attain.”

Rajan has proposed penalties and incentives to get lenders to move faster in containing soured debt in an effort to bolster the financial system at a time of slower economic growth. In his remarks, he took a swipe at the whole system, which deprives banks of money they could recover and prompts them to charge a premium for business loans.

“When the large promoter defaults willfully or does not cooperate in repayment to the public sector bank, he robs each one of us taxpayers, even while making it costlier to fund the new investment our economy needs,” he said.

More Flexibility

Kingfisher Airlines Ltd., whose valuation peaked at 39 billion rupees ($631 million) in 2007, topped a list of 406 defaulters facing legal action from banks, published in May by the All India Bank Employees’ Association. Other large companies have restructured loans in the past two years, including Lanco Infratech Ltd. and Hotel Leelaventure Ltd., which are both valued at more than 10 billion rupees.
Restructured loans at Indian lenders will rise by 1 trillion rupees from end-September to a record 4.7 trillion rupees by March 2015, according to India Ratings & Research Pvt., Fitch Ratings’s local unit. That would take stressed assets, including soured loans, to a 15-year high of 14 percent of advances from 9.8 percent a year earlier.
The central bank is looking into allowing lenders more flexibility for debt restructuring, Rajan said. The process gives borrowers a moratorium on payments, longer maturities and lower interest rates, while allowing banks to prevent an increase in non-performing assets.

Chastised Freeloaders

Banks may have to write-off more loans due to the high ratio of stressed assets to total loans, Rajan said. His comments came five days after Finance Minister Arun Jaitley told state-run bank chiefs at a quarterly review meeting to “honestly analyze reasons” for the bad loans and take steps to lower them, according to a statement from his office.

At the meeting, bankers were told to “carry out lending on the basis of objective due diligence without being unduly conservative, in a completely transparent manner without fear or favor,” according to the statement.

Rajan also called for changes in the legal system, noting that banks only recovered 13 percent of the amount at stake in 2013-2014 when cases were brought before a debt recovery tribunal, Rajan said. He said courts should entertain fewer appeals, while recommending new bankruptcy courts and turn-around agents.

“We need a change in mind set, where the willful or non-cooperative defaulter is not lionized as a captain of industry, but justly chastised as a freeloader on the hardworking people of this country,” Rajan said.

Tuesday, November 25, 2014

25th November Banking News

Ten names shortlisted for appointment as CMDs in eight PSU banks-Business Standard

The high-level search panel is headed by Reserve Bank Governor Raghuram Rajan
A high-level search panel headed by Reserve Bank of India (RBI) Governor Raghuram Rajan has shortlisted 10 executive directors for the post of chairman and managing director (CMD) in eight public sector banks.

Bank of Baroda Executive Directors (ED) B B Joshi and P Srinivas, Punjab & Sind Bank’s M K Jain and K K Sansi, IDBI Bank Deputy Managing Director B K Batra are among the 10 shortlisted, sources said.

Their names have been sent to the finance ministry and would be subsequently forwarded to the Appointments Committee of the Cabinet (ACC), after vigilance and other necessary clearances.

According to sources, eight names may get the ACC approval for appointment by the end of this month. Two names could be put on the waiting list or dropped subject to certain clearances, they added.

It is not clear if Ashwini Kumar, the lone CMD (of Dena Bank) to have appeared for the interview on November 14 for lateral transfer to a bigger bank, has been shortlisted by the panel or not.

Nineteen candidates appeared for eight vacant posts of CMDs in state-run banks. These 19 candidates were interviewed by three sub-panels separately.

The vacant posts of CMDs are in Punjab National Bank, Bank of Baroda, Canara Bank, Indian Overseas Bank, Oriental Bank of Commerce, United Bank of India and Syndicate Bank.

The post of CMD in Vijaya Bank will fall vacant next month.

Earlier this month, the government had decided that all eligible candidates will have to go through sub-committees having two members.

The sub-committees had three outside experts. These experts were former managing director of State Bank of India, S Viswanathan, IIM Indore Director Rishikesha T Krishnan and former chairperson and managing director of Allahabad Bank, S Panse, sources said.

The other three members of screening committees were secretary and additional secretary in the Department of Financial Services, and an RBI deputy governor.

The names have been shortlisted by the appointment board chaired by the RBI governor. It was based on the weighted average marks given by each sub-committee to ensure objectivity and transparency.

The selection process for appointment as chairman and managing director of public sector banks was changed following the government scrapping the selections made by the previous UPA regime.

Last month, the government had cancelled selection of heads of six state-run banks and 14 executive directors made during the UPA tenure following a government-appointed panel finding irregularities in the process.

Ready to be more flexible in loan recast to spur growth: RBI-The Hindu

The RBI is ready to give banks more flexibility in restructuring of stressed loans if it facilitates recovery of stalled projects, Governor Raghuram Rajan said on Tuesday.
“The RBI is exploring ways to allow banks more flexibility in (loan) restructuring. This is a risk we are prepared to take if it allows more projects to be set on the track to recovery,” he said.
The RBI is ready to give the flexibility as it recognises the fact that it cannot micromanage distressed loans, he said.
“The RBI (Reserve Bank of India) opposes forbearance which simply pushes problems into the future, while it will allow more flexibility so that problem loans can be dealt with effectively today.”
He said the banks have been asking the RBI for greater flexibility to restructure bad loans so as to align them with the cash flow of projects, and for the ability to take equity so as to get some upside in distressed projects.
An estimated Rs 20 trillion worth of projects are stuck at various stages for want of land, or environmental clearances or other regulatory or public approvals.
As of April-June this fiscal, bad loans, including those recast ones, have crossed 10.4 per cent of the total assets.
The RBI as part of its NPA management measures had tightened the loan recast norms, forcing banks to make higher provisions that hit their bottom lines.
From over 9 per cent growth in the pre-2010-2011 period, the economy had slumped to sub-5 per cent growth in the past two fiscals.
Rajan said the demand by the banks was legitimate as they imply a desire to deal more effectively with distress.
Rajan said the regulator has been reluctant to allow lenders this flexibility in the past because it has been misused by many bank management.
The Governor said a large number of industries were getting together with banks to clamour for regulatory forbearance, as they want the RBI to be ‘realistic’.

Cybercrimes rise nearly 3-fold in 1 year-TOI

GURGAON: Expect criminals in tech-savvy Millennium City to be cyber-smart. According to statistics released by the cyber cell of Gurgaon police department, cybercrime complaints have gone up nearly three times compared with 2013, with credit card frauds topping the list followed by social networking-related crimes.

As many as 850 cybercrime complaints were registered in 10 months till October 2014 compared with only 350 such complaints in all of 2013. So, at the end of the year, more complaints are likely to be registered. In 2012, 380 cyber fraud complaints were registered. Credit and debit card fraud cases top the chart of cybercrimes. There has been a fivefold increase in such cases over the past three years. According to the data, obtained from the cyber crime cell of the city police department, around 277 complaints of online banking/credit/debit card fraud have been reported this year, followed by 91 Facebook-related complaints (morphed pictures/cyber stalking/cyber bullying).

Other major cyber complaints were cheating through mobile (61), hacking of e-mail ID (59), abusive/offensive/obscene calls and SMS (55), and others.

The cyber crime cell claims to have completed investigation in over 60% for cases registered in 2013. Even this year, 70% cases have been detected till October 2014. The maximum number of complaints were received in the month of June (89), followed by September (86) and May (81).

A senior official of the cyber crime department said they have completed investigations into 475 out of 730 complaints till October 31, with 225 were still pending. In bank fraud complaints, the case is not registered if the bank compensates the complainant duped by fraudulent transactions.

Even home minister Rajnath Singh, while addressing cops at Hyderabad's National Police Academy, had expressed concern over rising cybercrime and said the home ministry has been asked to prepare an effective strategy to curb cybercrime. Stating 2013-14 statistics, he said cybercrime is increasing at the rate of 50% per year.

Last year, National Crime Records Bureau (NCRB) data had revealed that highest number of cyber crime cases in India were reported in Haryana. Most cases under the IT Act were registered in the state under section 66 (1) of the Act for offences of destroying information in computers. After this, Gurgaon Police made clear divisions within its cyber cell. The cell looks after the technical investigation and support required in crimes such as murder, kidnapping.

The older cell only deals with technical investigation of internet crimes such as online shopping frauds, cell phone and internet stalking, email hacking and credit card frauds.

(Registered under the Trade Unions Act 1926, Registration No: 727/MDS)
State Bank Buildings, St. Mark’s Road, Bangalore – 560 001

CIRCULAR NO.134 DATE: 25.11.2014



The Banking Industry is witnessing drastic changes and developments in the recent past. The Government’s initiative in regard to the FDI in financial sector, the infusion of capital required for the Public Sector banks, the issue of NPA’s in the banking industry, and the large scale operation of Jan Dhan Yojana under Prime Minister Scheme, the issue of the appointment of the executives of the Bank after the cancellation of the wait list etc., are some of the serious matters requiring immediate attention of the unions in the banking industry.

There are certain developments in the State Bank of India as well in the recent past which are of great importance to the rank and file working in the bank. The recent decision of the Bank to split the shares into Rs.1/- from the present Rs.10/- in the backdrop of the excellent performance that has been declared in the half yearly results announced in the recent past etc., are equally important for all of us. There is a need to have a close look at these developments. 

It is in this background, that the Executive Committee of the All India State Bank Officers’ Federation is meeting on 27th November 2014 at Mumbai. The meeting is expected to take stock of the current developments at the industry level, with particular reference to the Salary Revision Talks and also the failure of the Negotiations and the struggles that the unions under the banner of the United Forum of Bank Unions have launched in a massive manner. The meeting is also an occasion for us to take a total view of the changes that are taking place in the economic policies with particular reference to the Banking Industry.

Our members are aware that in the recent past with the change in the Central Government led by the BJP as a major constituent of the NDA Government a series of actions are being taken by the Government in the area of labour laws and also in respect of the financial sector more particularly in respect of the banking industry. The Budget is expected to take many crucial issues affecting the banking industry and the ownership of the Public Sector Banks.

 2. The recent massive success of the one day token strike by the entire workforce in the Banking Industry should have sent a strong message to the Government that the workforce in the industry is really agitated and their grievances would have to be looked into to avoid further industrial strife in the banking industry. Unfortunately, there is no response to our agitation, including the relay strike that is now slated from 2nd December, 2014 onwards, thus compelling us to take more stronger measures to drive home the point for a fair and equitable compensation system in the banking industry.

 3. The Executive Committee will also deliberate on the issues concerning the State Bank of India and the recent measures that are being advocated by the Management. The long pending issues with the Management would also be deliberated and a view will be taken to enable us to push through some of the issues in the CNC meeting which is slated on 28th November, 2014. The meeting also provides us an occasion to review our organizational activities in different parts of the country. The members of the Executive Committee are also expected to deliberate at length on some of the issues concerning service matters which are pending for a long time. The issue of the Transfer Policy, the Promotion Policy, the review and improvement of the various facilities that are available to us would also be taken up for an elaborate discussions in the meeting.

 4. The Executive Committee will also deliberate at length on the various issues that are going to be taken up in the CNC meeting convened by the Management on the following day at Mumbai. The current bipartite meeting is now at crucial stage. The interest of our officers is required to be taken care and the special features that are available to us would have to be further improved and safeguarded by our Federation. Thus, the Executive Committee apart from the strategies that are required to make the agitation program of UFBU success will have also the responsibility of working out ways and means to protect the interest of our membership during the current negotiations at the industry level. Hence the occasion will also be utilized to chalk out appropriate strategies for the furtherance of the interest of our officers’ fraternity in the forthcoming bilateral discussions between IBA and UFBU.

 5. We note to keep advised of all the details to our members in due course.

With greetings,

Formation Of New Bank union

Sri Kamlesh Chaturvedi Writes on Facebook -25.11.2014

Few bank employees called me today asking and demanding formation of entirely new union. I tried to convince them saying that banking industry is already dealing with situation of multiplicity of unions, how one more union will create any impact? More the unions-weaker is the bargaining power.

I could not convince them as they were saying that all the present unions are politically motivated having vested interest and operate on old methods instead of trying innovative new ideas. They said in next two years, new employees would replace old employees and so would be the case with new union as it will gradually replace old unions and will emerge as majority union.

 Formation of union is easy, increasing and sustaining strength is too difficult. Union needs variety of activists, field workers to mobilise members and collect grievances, table workers to reply emails, letters and build data, legal workers to file cases and specialists in art of negotiations. An union functions well only if it is having these type of workers with diversified potential and combining and coordinating as team.

 Any new union will be subjected to trade union rivalry at the behest of present unions and its attention may get diverted.
So question of formation of any new union requires deep thinking. I invite views and suggestions of bank employees especially new young bank employees .

My views are as follows

Instead of forming new union, it is desirable to write letters to present union leaders, force them to do better and if not changeable. Sincere bank staff who are talented and who are really interested to serve common bankers may make  effort to remove non-performing union leaders or force them and to expose them to think honestly for welfare of bank staff..
Similarly retired bank officers or award staff  may expose ED CMD and senior officers of all banks, because they are retired and not afraid of any demotion or transfer or any repercussion as normally working staff usually are. It is few senior officers who have damaged the value of banks by promoting flattery and bribery in loans and in promotions and transfers.

 The more they are exposed , the more they will prove helpful in wage hike . It is IBA members who caused rise in bad assets and it is they only who are denying wage hike in the name of NPA and less profit. It is they who want to keep ministers happy for their own career at the cost of lives of common bankers and career of common bankers.

 Retired or outsiders can only tell the truth , but working staff is always afraid of transfers and rejection in promotions. It is open secret that even case filed against injustice in promotions or transfers are withdrawn and all such cases have been aborted premature by clever management.

WE have seen how management and unions together cheated four lac bank employees in last settlement in the name of 2nd option of pension and several writs filed against injustice proved futile. Several cases against injustice in promotions are filed every year in some bank or the other and most  of them are either withdrawn or postponed for indefinite period till the aggrieved is retired or dead.

The need  of the hour is that all sincere and matured bankers come forward to expose misdeeds of top bankers and top union leaders who are making fool of bank staff in the name of unity or wage settlement or promotions. Usually clever leaders and clever top officers of management keep a few militant officers into their confidence, give them all possible helps and agree to their few recommendations in promotions and transfers and then exploit ten lac bank staff. Bank staff have to be ready to sacrifice promotions and be ready to face pain of transfers if they want to stop management using 'Divide And Rule' policy to exploit bank staff. Bank staff has to protest reckless expansion of banks taking place without similar rise in manpower. They have to stop late sitting and learn to love their families for whom they are in service.

Many of Top leaders are having their own business and professions apart from bank job and they want to promote their business by using their power and position and for this purpose they misuse powers they enjoy in banks either as management or as union leaders. Aam bankers have to expose such evil works and then only reign of injustice will end.

As such formation of new union is totally unwarranted and avoidable. Several unions simply give rise to inter union rivalry and it is aam banker who have to ultimately suffer. It is just like multiplicity of political parties in India that common citizens are suffering and leaders of parties are flourishing day and night. When there are many unions, they criticise each other but do not think it wise to sit together and fight against common enemy . Union of one bank can expose misdeeds of other banks to allay fear of transfers and rejection in promotions.

If at least 100 employees of each bank take oath to expose two bad high value loan accounts of their bank and handover the entire story to friend in other bank for exposure and for punishing real culprit top officials , they can save lot of junior or mid level offices from unjustified punishment who are made scapegoat in such big cases of bad loans for none of their fault. Juniors do not sanction big loans , they simply process it as per sweet will of highers , but when loan goes bad it is juniors who are taken to task and higher officials  who verbally built pressure on juniors are totally exonerated and acquitted.

Even now nine unions appear to be united on one platform called United Forum of Bank Unions. But the fact is that they are totally apart from each other and fighting for survival of their respective unions. Aam bankers have become totally indifferent and inactive. Leaders do not have will or do not have capacity to pull together all their followers to make the fight against injustice successful .

Had UFBU leaders  been so much competent and sincere to get wage hike as per aspiration of aam bankers  , they could have got it in six months of wage revision when it was due. When unions of other departments and organisation can get success why not bank unions representing ten lac bank employees can succeed. They give a strike call and then sleep for months together for getting a date for next dialogue. They did not get ignited and angered when they were cheated in DA merger date or when management offed 5% hike or 0.5 percent rise .And so on....  Not to speak of wage hike or injustice in promotions or arbitrary transfers to good performers , bank union leaders appear to have failed to ensure respectable service  and status of bank staff.

Position is very much pathetic and  Aam bankers have to be awakened from their deep slumber and force them to come out of facebook abusing and take real part in agitation. It is aam bankers who can force their leaders to perform.

It is undoubtedly true that bank staff aspire for bigger wage hike. But when Management has been ignoring the demand for last two years , may be in nexus with union leaders or to please ministers, it is the duty of bank staff to expose top officials and politicians who caused rise in bad debts and erosion in profits. If bank staff decide to speak truth of high value loans, not only ED and CMD of many banks will get exposed, but many EDs and CMDs will speak truth of politicians who built pressure on them for sanctioning of loan to bad businessmen and who built pressure for writing off of loans of big corporate houses. In this way not only profit will rise and NPA will come down , but GOI or IBA will stop making excuse of bad debts or profitability to deny wage hike.

It is therefore in the interest of all to expose IBA which has been consistently deny wag hike on plea of bad debts and profitability. Bank staff have to take it a challenge and prove that it is not the fault of bank staff , but it is entirely the fault and mischievous top officials of banks and politicians who ruled the country for last ten years.

Though wage hike may be further delayed by few months , but it will a great service to Nation and particularly health of public sector banks survival of which is at stake.

Monday, November 24, 2014

Dishonesy In Bank Promotion Process

Gaps in process to select PSB top executives: Panel-Times of India 24.11.2014

NEW DELHI: A high-level committee appointed after the arrest of former Syndicate Bank chief in a corruption case has found several gaps in the selection process for top executives at state-run banks. It identified lacunae in the entire process — from fixing the eligibility criteria to short-listing candidates, the interview process and allotment of banks — and asked the government to rectify the system.

The panel — comprising expenditure secretary Ratan Watal, RBI governor Raghuram Rajan and education secretary R Bhattacharya — was set up by finance minister Arun Jaitley to review the appointment of bank chiefs and executive directors after a reference from the Central Bureau of Investigation (CBI), which arrested the then Syndicate Bank chairman and managing director, S K Jain, on charges of corruption.

Read My Views On Interview

 TOI has run a series of stories pointing out irregularities as well as the review that was initiated by the finance ministry. To begin with, the committee is critical of the appointment of Usha Ananthasubramanian's as the CMD of Bharatiya Mahila Bank.
Power of Transfers

Read Corruption In Promotion Processes

It also pointed out that the finance ministry had identified 19 candidates for seven vacancies by expanding the zone of consideration by relaxing the eligibility criteria. But, it did not recommend any changes as the relaxation had been approved by P Chidambaram, who was then finance minister. "Going forward, however, the group suggests a careful review of criteria to determine the zone of consideration for EDs and general managers, a transparent set of guidelines and strict adherence to them," it said in its report.

While being critical of the interviews — which often lasted 15 minutes or less — the committee pointed out that candidates, who had appeared for interviews for CMDs, had received very low marks, when several of them had high scores in their earlier interviews for ED's job.

The marking system revealed that there were at least six persons who had received 100% in their annual performance appraisal (APA) but four of them got low scores — from 17 to 23 (out of 30) — in the interviews. A similar trend was observed in the ED interviews too, where seven candidates scored 68 or 70 marks (out of 70) in the APA, but got less than 10 in the interview. In contrast, two candidates with 60 and 62 marks in APA scored 27 and 28 out of 30 in the interviews.

What also caught the attention of panel was that those who made it to the interview due to the relaxation in the eligibility criteria fared better. While four of the eight from the extended eligibility list were shortlisted for appointment, from the original list only 27% (three out of 11) made the grade.

It then went on to say that the process of allocating banks was "not transparent" and suffered due to delay in vigilance clearance. Recommending that the government to seek vigilance clearance in advance, the panel also suggested that shifting CMDs from one bank to another didn't help as bank chiefs have short tenures.

Banks to alert before charging for breach of minimum balance-LiveMint

Guidelines will come into effect from 1 April
Have you ever been charged a penalty for not maintaining the minimum balance in your savings bank account? The bank usually does not alert the customer when it charges such a penalty. You get to know about it only after the money has been debited from your account. Soon, however, banks will have to inform the customers about the breach in minimum balance, thanks to a recent notification by the Reserve Bank of India (RBI).
Generally, banks charge a penalty on non-maintenance of minimum average balance (MAB) in your saving account. The MAB amount and the penalty differs across banks, and also depends on the type of bank account you have. For instance, in ICICI Bank Ltd’s savings account, the minimum monthly average balance to be maintained are Rs.10,000 (metro and urban locations), Rs.5,000 (semi-urban locations) and Rs.2,000 (rural locations). In case the amount in the savings account in a metro is between, say, Rs.5,000 and Rs.10,000, the bank will charge a penalty of Rs.250 per month. If it’s lesser than Rs.5,000, it charges Rs.350 per month. Punjab National Bank requires you to keep a minimum quarterly average balance of Rs.1,000 in metros in a savings account. The bank charges Rs.200 per quarter as penalty if MAB is not maintained.
Banks generally don’t send any alerts or intimation if the amount in your account falls below the MAB level, or when a penalty is being charged. In a recent notification, however, RBI stated that banks will have to notify consumers clearly through SMS, email or letter about the fall in MAB. Banks will soon also have to allow consumers to add money to the account within a month from the date of notice, and charge a penalty only after that.
Further to this, banks will have to follow up in case the minimum balance is not restored within a reasonable period, and recover penal charges only after informing the account holder. The penalty will have to be proportionate to the extent of shortfall.
In the notification, RBI also mentioned that banks should review the penal charges, and levy these as a fixed percentage on the difference between the actual balance and the minimum balance required. It has asked banks to ensure that such penal charges are reasonable and not out of line with the average cost of providing the services.
Banks will also have to ensure that the balance in the savings account does not turn negative due to the penalty.
These guidelines will come into effect from 1 April 2015. As of now, banks have been asked to update customer-related information in their data base
As banks plan more charges, reduce your ATM dependence -Financial Express

If you are in the habit of visiting your ATM frequently then you should now be watchful as beginning December 1, 2014, more than 5 monthly visits to your bank’s ATM for a financial transaction may cost you over Rs 20 and a non-financial transaction will attract over Rs 8.5 as penalty. Several banks have already announced that they will charge customers for additional transactions.

As per the directive issued by the Reserve Bank of India (RBI) dated August 14 and then on October 10, 2014, with effect from November 1, 2014, the number of free transactions at your ATMs of your own bank has been limited to 5 in a month (as against unlimited free transactions till now). In case of other bank’s ATM, the number of free transactions have been brought down from five to three (in the six metros) while it has been kept at 5 for non-metros.           

The six cities that RBI has identified as metros for the same are —Mumbai, New Delhi, Chennai, Kolkata, Bangalore and Hyderabad. “Banks are advised that at least five free transactions (inclusive of financial and non financial transactions) per month should be permitted to the savings bank account customers for use of own bank ATMs at all locations,” said the RBI directive which has put a cap of Rs 20 (plus service tax) as charge for every additional transaction. Several banks including State Bank of India, HDFC Bank, Axis Bank have already announced that they will be levying charges on ATM usage over and above the minimum permitted by the RBI, beginning December 1, 2014.

ICICI Bank has, however, not yet announced the same. The impact If you live in one of the metros and visit your ATM once in two days to withdraw cash then you will exceed your monthly free withdrawal limit (including own and other bank ATM) by 7 times which means that you will have to pay a penalty of over Rs 140 in the month which comes to Rs 1,680 in a year. Ways by which you can reduce your ATM visits There are however some ways by which bank customers seek to bring down their ATM visits and thereby avoid paying the penalty on such transactions. Most monetary transactions and a lot of non-financial transactions such as cheque book requests, credit card payments, checking your account balance or generating a mini statement can be done by logging into the net banking account and customers can avoid visiting ATMs for such purposes.

Some banks including HDFC Bank, ICICI Bank and Axis bank offer a missed call service for non-cash transactions where the customer can call a dedicated number from their registered mobile number following which an SMS is sent by the bank. Customers can use it for balance enquiries , checking mini-statements, cheque books and making account statement requests. All that a customer needs to do is to store the toll free numbers of his/her bank and call on it. Customers can also go for more debit card transactions rather than cash transactions as it -

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Sunday, November 23, 2014

Babas,Babus, Bankes And Borrowers

There are some media men who are continuously trying to malign entire community of saints, babas and spiritual gurus of the society of various sects and religions especially that of Hindus after the exposure of Baba Rampal . There is no doubt that Baba Rampal crossed the limit of a saint and has tarnished the image of a saint by indulging in illegal activities in the name of humanity and religious Samagams. Asharam Bapu also tarnished the image of saint and reportedly indulged in sexual exploitation of followers. Similarly Nirmal Baba has also been cheating his followers by promising to cure the sickness of followers in his own style. There are many saints who in the name of religion cheated followers in the past and who have been are cheating their followers in current days too. But it does not mean that the entire community of saint are curse on the society.

Rather it is saints and religion of mankind who provide relief to lacs and crore of people who suffer in various hardships. Not to speak of common men , even ministers and Prime Ministers have imposed faith in such saints and sought the blessings of saints of their choice to achieve their targeted goal. Ministers and politicians of all parties use to visit Samagams of various saints to seek their blessings. If in future it is proved that a particular saint was cheater and indulged in evil works , it is not the fault of visitors.

After all, it is the image of a saint which attracts and pulls crowd towards it. Late Indira Gandhi also became victim of Chadra Swami during her tenure of PM. All human beings including stars and ministers are swayed away by sentiments and faith in religious values. Clever saints as also politicians many times try to exploit these sentiments to serve their vested interest in immoral and illegal ways. There is no doubt in it that all evil persons including saints and politicians must be punished for their evil works and entire community or class should not be blamed for heinous work of few individuals. Government has to develop system which keep close watch on all activities of the society in tactful way and properly monitor them to nip evil elements when they are in bud stage.

Even when doctors fail to cure the pain of a sick person it is only saint who provide relief only by few good words of faith in God. A few fraud minded persons and cheaters who in disguise of saint play foul game with his followers cannot be allowed to stop the good work being done by numerous really good and pious saints who devote their entire life on the welfare of mankind. No one has the right to blame entire saint community or babas or maulvis.

There are many media men who give wrong , false and biased news after taking illegal money . There are many journalists who have taken franchise of publishing paid news without caring for the safety and security of the country and common men. Many journalists misuse freedom granted to them by democratic principles and are habituated to torture and tarnish even good performers just to please their political patrons. On the contrary ,There are good journalists too in the field of media who do many good jobs and who expose ugly works of so called popular leaders. As such it will be unwise to blame entire media community for evil works of few journalists.

Doctors are suppose to serve sick persons but they commit fraud by stealing kidney or forcefully and illegally performing unwarranted and avoidable surgical operation to earn money from ailing persons. Many Doctors have been found to be casual in their work and accused to causing death to patients. But it does not mean that entire Doctor community is ill-motivated. All doctors who commit crime in eyes of law must be punished in no loss of time.

Bankers are supposed to lend money to weaker section and to business houses to do social welfare activities as well as to increase profit of the bank , But few bankers are indulged in making money for them and their families and it is they who contributed bad assets to a great extent. But can anyone blame entire banker community for present sickness of public sector banks?

Persons who take loan from banks are called as Borrowers . Few borrowers do not repay the loan in prescribed time or wilfully do not repay .Volume of bad asset in banks is on rise  quarter after quarter.  But can bank stop loaning activity? Need of the hour is to declare bad borrowers as criminals and punish them in no loss of time to create a repaying culture . It is the need of the time to distinguish defaulters with valid reasons and defaulters with invalid reasons honestly and take curative or punitive action to bring about real reform in banking.

Millions of people drive vehicles on road but few of them become victim of accident either due to own fault or due to fault of others. But it is not desirable to conclude that driving is dangerous and should be stopped.

We remember how a personal security guard of Indira Gandhi killed her in her own house. It just not say that all security guards are unreliable. There are many teachers who during the course of teaching developed illicit relation with the students and many of them even raped girl child. Such incidents come to light in all towns and cities . But it does not force us to conclude that all teachers are unreliable.

Police force is meant to provide safety and security to citizen of the country. But many police personnel misuse their power and exploit money from people who go to them for redressal of their grievances. Police more often than not, torture good citizens and support bad ones for earning illegal money in their style. But still there are many more good police personnel who are exercising their duty faithfully and devotedly for the safety of people of their areas.

Many political leaders ,ministers and important persons of the country who are reckoned as good leaders in their field are also found to be indulged in illicit relation with woman, indulging in forced sexual relations, and commit moral sin during their course of public relation. But can we say that all politicians and all ministers and all public representatives are unreliable and cheaters?

Ministers and important political leaders of the country are found to be indulged in corruption and have looted lacs of crores of rupees of public fund. Ministers and public servants have caused loss to the tune of lacs of crores of rupees to various departments. Even then we cannot blame entire community of government servants or ministers for crime committed by few public servants or ministers. It is the duty of the government to weed out such evil persons and suitably punish them .

There are many domestic servants who have been found guilty of committing sexual crime with children of the home they served or found guilty of stealing costly goods of the house. For such mischievous servants , no one has right to abuse and accuse entire servant community. Many judges in courts are found guilty of having illegal sexual relations or earning illegal money in awarding judgement in favour of bribe giver. There are good or bad persons in every society , every groups and very organisations in all countries.

Need of the hour is to say spade a spade. It is the duty of state or central government to make such a strict arrangement of audit and inspection that all evil persons are punished in shortest span of time. For this purpose government have to provide adequate quality manpower and favourable infrastructure to all police stations, courts, CBI and all departments which are assigned the duty of finding out criminals and punishing them after completing due course of actions in this regard.

GOI have to create adequate and perfect public information system, crime detection system and judicial system to punish really criminals without any bias to caste, community , region or religion. GOI will have to stop discriminatory treatment and have to send a message by real action all over the country that there is no leniency in punishing to crime doers.

Similarly media men who work as agent of some party or the other and who are agent of some caste or community should stop their evil motivated campaign against saint of particular community and exempting that of other community. Politicians who play dirty politics on all incidents merely from vote angle should also be discarded and condemned by right thinking citizens of India. There are black sheep in all fields and it is the duty of all responsible persons and institutes to trap them in net and ensure that they are taken to task without affecting good people of the country.