Are Chartered Accountants Reliable

Chartered Accountants (CA) in India are mostly working as brokers of tax officials and  Bankers. It is CAs who manage tax evasion from tax authorities or bank finance from banks. Raju was the greatest fool who disclosed his fraud in Satyam Computers; otherwise none of CA could catch the culprit. Almost all CAs are simply selling their signatures to business community, busy in negotiating with tax officials and bank officials and they can sign any balance sheet blindly or cook fake balance sheet as per need of traders and industrialists. CAs work as middlemen between loan seekers and bankers and they can manipulate the entire accounts’ picture as per whims and fancies of the loan seeker and loan give bank if CAs get handsome amount as fees.CA can certify any faulty or fraudulent transaction in balance sheet of any company or certify bad assets of banks as standard assets provided they get handsome money and gift in return.

Similarly Lawyers in India in general are working as brokers and middlemen for judges working in various courts. Officers, secretaries working in various state level secretariats or in secretariat attached of various ministries and Parliament of India are working in general as agent and broker for ministers. Politicians of various political parties who are effective and master in manipulations are working as agents for various MLAs and MPs. District level political leaders are flatterer of state level leader of a political party and state level leaders works as yes-men of central level leaders. To add fuel to fire , even IAS officers ,IPS officers and armed forces have become agent of business community in some way or the other. Anyone can imagine the fate of the country when protectors are not trustworthy.

In common terminology they are called as lobbyist or flatterer or managers or chamchas but for all practical purposes they are actual fate makers.

It is caucus of these flatterers who surrounds powerful leaders in all offices, banks, Income tax offices, secretariats and at all places where powerful persons are sitting. It is these flatterers known as Godfathers who manage transfer, posting and promotion of staff who works as per whims and fancies of lobbyists. It is these lobbyist or game players who manage transfer of honest workers who hinders their corrupt path to remotest place, to critical place or to a place where he or she becomes ineffective in all fields of his life. It is these lobbyist who manage torture to good workers who create impediments and it is they who manage even killing of such hard core honest performers. It is these lobbyists who can make or mar a government for their self interest.

Neera Radia is not alone working as lobbyist in corporate world but there are hundreds and thousands of such lobbyists active in practically in all offices. Even top ranked DGM, GM, AGM.CM in a Public Sector bank has to approach one or the other lobbyist to get fastest promotion and cream posting. General Managers have to contact lobbyist sitting in Banking Division or Minister of Finance like prominent leaders / politicians for getting the post of ED and CMD of a bank. Low level or junior officers cannot dream of upward movement in career path until he or she is a good flatterer of his boss or until he or she is ready to offer some precious gifts to his bosses despite all merit-based-policies-for- promotion in force. Retired politicians have to contact top leaders to become director in a PSU and so on so forth. One has to invariably contact a lobbyist for getting his work done easily quickly and with minimum possible expenses.

In eighties one great lobbyist namely Harshad Mehta was caught in bank scam .But in this age of reformation there are hundreds of person working like Harshad Mehta and manipulating Stock Market as per their sweet will and SEBI is silent spectator of all these scandalous transactions and killer speculations in stock market till it assumes the form of a scam or scandal. One after other exposure of scam or bribe led lending or fraud takes place, still our FM tells that Indians banks have enough system control mechanism in place. So many banks have been closed in last 20 years (i.e. in the reformation era) or merged with some stronger banks and still government claims that banks in India are well administered.

In such an environment it does not look astonishing and unexpected incident when one say that Reddy brothers succeeded in tax evasion of Rs.80.00 crores in mining in Karnataka or Mr. Raja OR Madhu Koda or Mr. Kalamadi or any such corrupt officer could accumulate wealth worth hundreds of crores of rupees. It is not astonishing that declared bad assets in banks are as much as  one lac twenty thousand crores and at least three to four times of this amount is though bad but hidden in balance sheets of the banks.

In fact most of the government officers and ministers are busy in making money some way or the other. Even media men are indulged in such corrupt game in their own style. This is the picture of Indian democracy where rich is growing richer and poor are becoming poorer. Rich people are hiding their money in the form of land, gold, silver and diamond like precious goods whereas the poor common men are unable to afford their daily bread, cloth and a house to live in.

Lobbyist can approach all powerful centers whereas common men are fear of accessing any office where he can expect his work done or where he can knock the door to get justice.

It is ridiculous to know that RBI has asked details from bankers who sanctioned finance to companies currently under investigation by CBI to punish the culprit top ranked bankers who financed to telecom companies by taking bribe. It is nothing but a reluctant surgical operation undertaken by RBI and not body scan of banks which should be undertaken by RBI to stop corrupt practices prevailing in the banks where top ranked officials like General Managers are caught taking bribe for lending.


Scam of value of hundreds and thousands of crore rupees cannot take place without the support of hundreds and thousands of persons in the system. Few cases of scams and corruptions which are exposed in public by media are not aberration of the system but exposure takes place only when there is dispute in sharing of bribe money among corrupt officials or when bribe giver remains unsatisfied even after payment of bribe. Exposure of scam takes place when desired work is hampered even after payment of bribe to ministers and officers due to change of guard or change of powerful lobby or change in policy due to some reason or the other. Otherwise it is the corrupt system which has been developed by politicians and rulers of the country since independence.

Solution:

Root cause of all corrupt practices is whimsical transfer, arbitrary promotions of junior staff by top rank officials to ensure a team of yes-men and flatterers around him so that none can raise the voice against his misdeeds and none can be whistle blower because everyone gets their due share.

Obviously no use of discretion in the matter of promotion and defined policy on transfer and posting of staff may remove fear from the minds of good workers and ultimately culture of flattery will end which is considered to be the root cause of all maladies. Annual Appraisal of staff or Interview of staff for promotion gives ample opportunity to top ranked officers to make or mar the career of his juniors. Obviously to get rid of fear one is forced to resort to flattery to bosses at the cost of quality of work, honesty, sincerity and devotion. As such seniority based promotion should be made mandatory for all government offices, banks and other PSUs. As far as I know seniority based promotion takes place in central government services , but banks are still following  the policy of whims and fancies of top executives for promotion and posting which has vitiated the entire work culture in banks.

Besides quickest action on public complains in police and in court may create fear in the minds of evil doers. Severe punishment to corrupt person in the shortest period of time at least to person in high echelon of the society and to person sitting at top posts may have demonstrative effect down the line.

Unfortunately in our country low level staff are made scapegoat in all cases of corruption committed actually by top level officials and ministers. In my opinion award to good workers and punishment to bad workers is not happening in practice though all policies are framed keeping such good ideas in mind.

Action Taken Report on all vigilance inspection activity undertaken by various department may prove that even vigilance officers have earned huge money by closing the file or by awarding symbolic punishment even in case of grave and serious lapses of omission and commission.

Last but not the least , President of India may promulgate an ordinance to ensure seniority based and time bound promotion, to restrict whimsical transfers of government officers immediately after change of guard and to ensure transparent transfer policy and its honest execution as a new year gift to send a clear cut message to working class that there will not any injustice with those who are loyal to the organization they are associated.

Black Money

Politicians often talk of black money parked in Swiss Banks but always fail in their exercise to bring back the same in our country because they are not honest in their utterings.They made unprecedented hue and cry before last general election on huge amount of black money parked in Swiss Banks but politicians of all parties became almost silent after the declaration of election result. What they say and what they mean to do is always different. India is still rated rate as one of the top corrupt nations. It is worthwhile to mention here that India is rated as one of the top ranking hunger inflicted state of the world even though Indian leaders claim and feel proud of achieving comparable GDP growth in the economy and said to be decoupled with global recession or global financial meltdown.

 Madhu Koda ex-CM of Jharkhand and his associates could accumulate hundreds of crores of rupees through corrupt means because he knew the power game and corrupt game being played in the country in all the states. Koda is bird of the same feather and he is not new or his case is not an isolated case of corruption in India. Latest story on extent of corruption in CWG is well heard and read by Indians. In fact there is no dearth of cases of large scale corruption, fraud, scam and cheating in our country.

Rulers, leaders , CEO or head of any organization first pull together all his flatters on whom he can blindly rely and throw away all honest persons who can put hindrance in their task of earning or printing money. In this way evil work of the ruler does not come to fore as long as one of the corrupt officers raise ugly voice against the system not because of his sudden thirst for patriotism but due to his puncture the effort of other corrupt person who has been enjoying larger share of ill earned wealth.

As a matter of fact rulers of this country could not stop corrupt practices in the system prevalent in our own country and cold not stop  formation of black money in the country and hence they could not and cannot force foreign country to declare name of Indians who have parked money in Swiss bank. Similarly when investing agencies like CBI, ED, Vigilance, IT officials and other regulating agencies are themselves corrupt they cannot stop spreading cancer of corruption in the Indian body system. And the most vital point is that when rulers themselves are corrupt they cannot endanger their own money parked in either Swiss Bank or in Indian financial and real estate sector.

It is rightly said by the great writer Munsi Prem Chand.

"Jab Rakchak hi Bhakchak Ban jaye to vinash nishchit Hai"

When almost every minister at Center and almost every minister in each State government is indulged in making money through corrupt means, when officers in general are involved in corrupt game played by politicians and when all officers entrusted with the duty of stopping and removing corruption from the system and finally unearthing ill earned money are busy in making money through corrupt means who will make serious efforts to unearth money held in Swiss Bank.

Persons or group of person who have kept their black money in Swiss Bank are none other than politicians and government officers. When top officers and top ministers are corrupt one cannot imagine of businessmen and professionals abiding by Indian rules and following rule of ethics. It is government officers and politicians who make survival of honest service men, honest businessmen and professionals difficult and force them to manufacture black money and share with corrupt officials to live peacefully. Honesty has rather become curse for government servants as well as businessmen and professionals.

Black money is not only in Swiss bank, it is parked in banks in India too. Black money is concealed in form of gold, land and building, apartment, big bazaars, farm houses, private professional colleges and in almost all big houses. Black money is visible to all whose eye is not jaundiced with the decease of black money. Nine out of ten multi storied residential building and commercial complex in Metros and big towns are constructed by ill earned black money only. It is open secret. As such it is not necessary to focus attention on money parked in Swiss Bank and make politics out of it but is more important to focus on black money parked in India and which is visible in India itself.

It is necessary for almost all politician and officers working in government and government departments to introspect and look into their heart whether they are really honest. Politicians in general cannot afford contesting and winning an election without the help of black money received from businessmen and at the same time without the indirect support of controlling officials none of the businessmen can imagine of tax evasion.

Without the support of corrupt officers, none of the contractors in India can carry out their tendered allotted work. More than fifty percent of value of contract work allotted by government to contractors is consumed in distributing commissions to corrupt officers and politicians. Ministers cannot even organize a rally without the financial support from local corrupt officers, black money of rich businessmen and professional.

I therefore feel that work of purification should start from our own land, our own offices, our own banks, our own politics, and our own administrative system. Politicians should stop playing foul game of putting blame always on foreign agencies for every lapse on their part if they are really interested to see India shining.

India must stop flattery culture because this flattery culture is the root cause of all evils. None of government servants can dream of good posting and timely promotion without indulging in flattery to big bosses and powerful politicians. It is therefore necessary to make transfer, posting and promotion fully transparent and remove all bottlenecks which gives scope of whimsical decision in the matter of posting and promotions. It is the need of the hour to punish those who are misusing their delegated powers and who promote flattery culture by taking arbitrary decisions.

CBI, Vigilance department, Band, IT department, IB ,Anti corruption offices ,custom officials  all such regulating agencies which are established for prevention and elimination of corrupt practices should be made more powerful and given sufficient man power to carry out their holy job. Any officers found indulging in corrupt practice in such department should be punished severely without any discrimination based on caste, community or religion.

Political interference in administrative matters, police action and judiciary must be stopped even if for this matter rules of the land are needed to be altered, made more severe and non-discriminatory. Delegation of power in few hands at any levels and in any offices gives scope for corruption and hence the power must be diluted to the possible extent in such a way that it does not cause delay in execution of plan and projects. Officers who misuse power must be punished immediately.

And last but not the least, MLA and MP who rule the country should not be elected by votes of illiterate and criminals but selected from top IAS and IPS officers, toppers of colleges, reputed social reformers, successful bankers, reputed honest businessmen and from persons of undisputed character. System of garlanding and gifting top officials and political leaders as also that of giving red carpet welcome to top officers must be stopped immediately. Practice of spending crores of rupees in inaugural functions or in felicitating top officials or ministers must be stopped forthwith through an ordinance at least for one year to start with.

Judiciary should be provided adequate quality man power so that pendency in court is made zero and justice is made available in shortest span of time to all aggrieved Indian citizen. An environment has to be created in the country where criminals of all nature have fear of action in their mind and in their core of heart.

It is tragedy that in our country police actions in our country is against good citizens and punitive action through court orders is also possible against good citizens. Actual crime doers use judiciary to perpetuate their reign of crime .If this fear of action is ensured at all levels I am very much sure that black money from Swiss Bank or Indian Banks will automatically come on the floor and people will be motivated to use the money for constructive purposed rather than parking in foreign or Indian bank.

Honesty is the best policy has to be proved at ground level. Merit and merit has to be respected in our country if we Indians really want India to grow at grass root level.

GDP growth shown by ministers to International agencies is not at all helpful and pleasant for majority of Indians who are unable to even afford their normal livelihood and manage respectful life.

It is worthwhile to mention here US President Mr. Obama has taken many steps to reform US banking culture taking lessons from 2008 financial crisis. On the contrary our government is still unaware of growing sickness in Indian banks only because we Indian know how to play with data, sink and swim in the sea of data.

When USA, pioneer of reformation, liberalization, privatization and globalization has started revisiting the policy of outsourcing, policy of concentration of power in few hands, policy of complete freedom to trade icons and policy of complete freedom to banking industry so that more and more employment opportunities are generated for US citizens, expenses on executives is cut to size, and corrupt practices in US system is put an end for good and for eve. Why not Indian politicians learn lesson from their masters at least and ensure transparency in all their action and why do they not discard vote bank politics based on caste, community, religion and region is a big question to answer and a big challenge for those whose vision is to see India really shining in the world.

What has Mr. Clean PM done ?

Posted February 6, 2011

Prime Minister Mr. Manmohan Singh says

Corruption is the greatest

impediment in good governance, in development, in equi -distribution of

GDP growth, in delivery of justice and it also tarnishes the image of

the country in the world.  

He is PM for last more than six years. But he could not do anything to stop corrupt practices. He is helpless.

Home Minster Mr. Chimdambaram has admitted at Devos

economic summit that hardly 50 percent of fund allotted for

development is spent on actual work.

Mr. Rajiv Gandhi during his tenure as PM had admitted 20 to 25 years ago that hardly 10 to 15 percent of development fund reaches in the hands of real beneficiary. Similarly fund spent on development of infrastructure is lost among various middle men.

More clearly contractors have to

pay bribe to various officers and ministers to the tune of 50 per cent

of value of work order they are allotted, even if it is done through

legal process of tender.

Not only this even for good posting and timely or before time promotion one officer has to give bribe to competent authority. Even to get rid of transfer to remote and critical posting one has to offer costly gifts to transferring authority. Why not will he flatter to his boss? What is the need of doing honest duty for which an employee is paid if all normal and abnormal benefits accrues to him by dint of only flattery and by offering some costly gifts or by paying prevalent rate of bribe? It is better to earn and let others earn bribe, This is the slogan of the day when economic reformation , economic freedom is given to all in addition to fundamental freedom given by Indian Constitution.

As such Government is helpless in controlling Mafia contractors ,corrupt officers, ,investigating officers, CBI officers because all are appointed on the basis of quality of flattery they extend to Ministers and their immediate bosses and honestly share the bribe they earn with  Ministers, babus and government servants. A gang of flatterers run the government. A gang of flatterers surround each top ranked officer in each office. Culture developed in the government department is open secret which is “earn and let others earn”.

Never be dishonest in offering share of bribe you earn with the bosses and be sure that none can harm you, you will grow in power, you will grow in wealth and you will in social status and social recognition.

Honest and devoted workers are rejected in promotion processes. Dishonesty is the best policy at least when Congress Party is in power at center or in a state. Leaders of Congress Party ware well versed in blackmailing opposition parties on the issue of historical case of so called communalism or secularism or keeping voters pleased by useless toys of promising caste based reservation to various segments of society.

PM has admitted rampant corruption not once, twice or thrice but many

times during six years tenure of PM.I am unable to understand who has power and who is empowered by voters to cure cancer of corruption.

In our country when PM has got no

time and no capacity to ensure that legitimate instruction given by him

to telecommunications minister is obeyed by Mr Raja in true spirit. He allows the fraud to perpetuate even though instruction given is not followed. He does not think it wise to ensure compliance of his orders. This s why all offices in our country only issues guidelines but never take efforts to ensure its execution in the field and never try to punish those who violate the laid down norms. Laws are made only for the sake of laws. Rules are made not to be followed but to please the opposing persons. Leaders preach the sermons to public but do not think it necessary to follow the same. One after other committees are set up to investigate the allegation of corruption against government officers and ministers simply to close the chapter once for all or to shut the mouth of revolting people or to silence the political parties who put hindrances in their path which leads to acquiring maximum personal wealth.

When

PM can allow willfully Mr. Raja to cause loss to the country to the

tune of one lace crore of rupees, he cannot dream of good governance.

His action demonstrate that it is wise to remain silent spectator  of

all corrupt practices and enjoy the fruits of power and encash his

clean image .

None of complaints lodged in the office of PM or that of FM or President of India or for that matter to any office owned by the government by lacs of aggrieved persons in the country is properly attended to ensure its logical

conclusion. When office of PM or CM or that of President of India is

inactive and when they fail to demonstrate their value system they often

espouse and preach before public they cannot expect and  should not expect

junior officers to work honestly and sincerely.

Finance Minster Mr. Pranab Mukherjee and his fellow colleague Minister for Agriculture

Mr.Sharad Pawar have also almost surrendered before

relentless price rise. They have completely failed to control price

rise and inflation. They say that government has got no magic wand which can stop price rise. They have openly admitted that price rise has gone out of their control because they cannot punish officers working in various government departments, they cannot force their fellow politicians to follow discipline , they cannot punish black marketers and hoarderer business men because it their financial contribution which makes the political party able to fight election.To be more clear election funding is possible only when black money is allowed to grow .It is therefore entirely foolish to dream that government will ever take real and effective steps to stop black money creation in the country. 

Government cannot stop growth of black money within the country, how can they get success in bringing back black money parked in foreign banks. When CMD and ED and all top bankers are corrupt they easily allow black money movement. All black money move from one bank to other bank through Indian banks only.  

Black money is always remitted to foreign centers with the knowledge and with the support of corrupt bankers, corrupt ED officials, corrupt IT officials , corrupt custom officials and all other corrupt officials who are supposed to stop movement of black money or creation of black money. After all it is the money of corrupt politicians and money of corrupt officers which will be unearthed if they take corrective step and to cure the cancer of corruption.

They have willfully made the judiciary weak and ineffective and they never bother to bring out judicial reformation or police reformation as promised by politicians from time to time. .They cannot reverse the policy of liberalization and globalization launched by honourable clean Mr. Manmohan Singh  in 1991 because these policies of reformation have given them enormous opportunity to accumulate wealth .And it is the unregulated freedom given to business community that they earn unreasonable profit and earn hundreds and thousands of crores of rupees  and eventually they agree to give considerable amount to politicians of ruling party None can stop this vicious circle and none can cure this cancer of corruption. Whimsical transfers, arbitrary posting and arbitrary promotion are the root cause of all social malady and economic disparity growing year after year. To add fuel to fire is the weak judicial and police system in the country.

As such we can imagine of real reformation in the country and we can provide real relief to poor common men only when we are able to make police active, effective, quick, honest and real social workers, real security providers and real fighters against injustice. Freedom granted by Late Mahatma Gandhi is lost, completely lost and it confined only a few hands of politicians, government officials and a few business men. We have to bring about desired reformation in police and judicial system as early as possible. Otherwise number of extremists will grow, network of Maoist and terrorists will grow and ultimately Anarchy will replace democracy, so called secularism and ancient socialism.

Indian politicians have been harping on poverty alleviation for last 40 years. Since the days of bank’s nationalization they have changed the slogan of Social welfare to financial inclusion but the there is no actual improvement visible in the pitiable position of 90% of Indian population. Only God can save common men of India until our judicial system and police system is honest and perfect, active and effective and until they are provided adequate manpower and adequate infrastructure to fight against perpetrators of injustice.

Raju, Radia and Raja

Banks show performance reports in attractive way just as Mr. Raju used to do in Satyam Computers by managing corrupt team of Chartered Accountants called as CAs. In our country the real orinators, collaborators, promoters and supporters of corrupt practices are CAs who can sign and manipulate balance sheet of any small or big businessmen provided they are given money and gifts as they desire. It is therefore wise to learn tips from CA as CMD of all businessmen, banks, insurance companies, and government offices are doing. In Public Sector banks, all bad assets are treated as good assets by keeping Teams of CAs happy as Raju of Satyam Computers used to do before he admitted his fault in 2008.

Similarly another tip to become great is to become person like Mr. Raja, the Telecommunications Minister who by dint of his relations with party bosses could dare ignore even letters of PM and advices of other advice providers. Banks do not listen to what Ministers preach before public and before rural, innocent , illiterate and simple hearted voters but always do what Minister want to do for them in private.CMD or ED or GM or DGM or AGM or CM are busy in earning money through lending to big corporate and real estate developers only because they possess ample expertise in art of speaking , they know how to polish officials in MOF and Banking Division.

 Third important tip is to maintain good relation with top officers and keep friendship with lobbyist like Ms Radia, the great lobbyist who used to create harmony among government officials, Ministers and Corporate became owner of property worth hundreds of crores of rupees within a few years only. Lobbyist in general use to convince Ministers and government officials to ensure suitable Laws, subsidy and favour to business community, appointments of ministers in Central Cabinet, appointment of person as directors of various PSUs, promotion of officials in Public sector undertakings, managing media men and journalists and what not simply by exchange of gift in cash and kind from one corner to other and taking a share in all such malicious deals.

It means flattery and yesmenism are the keys to sure success. No other merit is needed for going up in the life. Most of the honest officers workers are sidelined by top bosses and rejected in interviews conducted for promotion. Only in such environment and with such corrupt culture, one can dream to become powerful and wealthy like Raju, Raja and Radia easily and comfortably. 


Even if such high profile people are corrupt and non performer ,  success is  inevitable for them provided they are successful manipulator, flatterer and donor of gifts and bribe to their bosses. Even charge sheeted and corrupt officer can be appointed as CVC provided he or she possesses above mentioned qualities similar to person like Thomas who became CVC. Many corrupt bankers have become CMD, ED, GM, DGM, AGM, CM in a bank by dint of above mentioned qualities or by offering WWW.

I just want to establish the truth that when top ranked officers are bad, one cannot expect justice whatsoever even through knocking the doors of justice. When CVC Mr. Thomas is of doubtful integrity and charged with corruption, he cannot give justice to good officers working under him or who lies within the area of his control and monitoring. When whistle blowers are burnt to death or murdered by musclemen of corrupt officials and corrupt politicians. Honest officers cannot imagine of any good results from the policy of Whistle Blower announced by government of India.

Manmohan Singh PM with his clean image could not take action against corrupt officials during last six years to demonstrate that he can take stern action against any corrupt person whatsoever he or she may be. But corrupt officials and ill motivated and black marketeer businessmen have demonstrated several times that they can finish any whistle blower who tries to disturb their business of earning money through bad methods.Manmohan Singh like person can only make ridiculous excuses that he was not aware of charges against Mr. Thomas before his appointment as CVC or he had objected through letters to what Mr. Raja was doing as Telecom Minister.

Root cause of all corruption is whimsical appointment and arbitrary promotions and posting done by high ranked officers.

Interview at the time of fresh recruitment of an officer is imaginable and may be justified but what is the importance of Interview for promotion of well experienced, well tested and well attested officers: -

Why interview is needed for promotion of an officer who has worked for a decade or for two decades or even for more than three decades?  

Is it necessary to empower interview panel officers to approve whimsical, arbitrary and unjustified promote a junior, corrupt and incompetent officer who has good relationship with high rank officers?

Is interview necessary to reject a good officer, a whistle blower against misdeeds of big bosses?

Officers in PSU banks who created huge amount of NPA and who is master in collecting bribe through their flatterer branch managers are getting one after other promotions. Why?

Will you please tape phones of top executives of banks to identify corrupt high rank officers who will now earn through promotions and postings?

 Please note that season of promotions will commence shortly in all banks.

Recently a few officers of higher ranks were caught in bribe led lending. Even such incidents should open the eyes of those who are entrusted with the duty to stop corruption. Anyone may imagine the quality of promotion given by such corrupt officers to juniors. When members of interview panel are too much greedy and expect   money and costly gifts for every work they do for juniors one cannot imagine of good governance in any sector or office. It is open secret that vigilance officers who are supposed to catch corrupt person are themselves fully indulged in malpractices.

It is very difficult to punish persons who do injustice with good officers, with seniors and ultimately vitiate the atmosphere and adversely affects work culture in an organization.

But it is bitter truth that until humiliation to seniors is stopped it will be foolish to expect healthy culture or to ensure good health of a bank for a long period. If money is lost nothing is lost, if health is lost something is lost but if character is lost everything is lost.

It is worthwhile to mention here that only due to large scale corruption prevalent in top offices, a good number of good officers do not apply for promotion and do not appear in interview. Good workers understand very well that only officers with backing of godfather are selected in promotion processes. Many banks is India have faced huge loss and merged with some other banks in the past only because of corruption prevalent in that bank in large scale and only because incompetent and corrupt persons are selected for key posts. It is therefore necessary to investigate the promotion processes conducted during last 30 years and punish those who violated norms to approve unjustified promotions.

Government  should learn lessons at least from the past of Indian bank, United bank, central bank of India , Global Trust bank and several other cooperative banks and many small banks which had to incur huge losses, face capital erosion due to irrecoverable large proportion of NPA. In PSU banks in general proportion of declared NPA is increasing quarter after quarter. If we take into account hidden NPA, banks in India will meet the same fate as bank in America faced in 2008 and 2009. Even government will deny capital infusion when the malady goes beyond control. It is therefore need of the hour to stop immediately corruption in selection and promotion of officer not only banks but in all offices.

Customer Service in Banks

Customer Service in Banks

Posted February 9, 2011

A high-powered committee, constituted by RBI last year under the Chairmanship of former Sebi chief M Damodaran, is likely to soon submit its recommendations to the central bank on required changes in existing policy framework and prevalent practices of customer service in banks.

The Reserve Bank of India (RBI) may soon tighten its noose on banks lacking on customer service front by a new set of rules, which could include hefty penalties and other remedial measures to guard against such lapses.

RBI desires improvement in customer service. Damodaran committee has submitted report by collecting opinions of CMD or ED of a few banks that too sitting in a AC room. But in my view no improvement may take place until there is a change in attitude of field functionaries, front like workers and officers who are monitoring the operations of the branches. As a matter of fact, employees in banks are the most neglected sector. Practically there is no effective policy for Human Resource Development through there is a name board for HRD in all administrative offices. There are a few officers who are looking into routine matters of sanction of leave, LTC, training etc. But no efforts are ever taken to award the real workers to create an environment which motivates honest and devoted workers, which may award an officer whose image among customers is the best, which may award an officer whose lending is safe and secure. On the contrary all actions of higher officials demonstrate that flatterers are the choice of big bosses.

 Higher management in PSU banks or the officials of RBI or that of banking division or the Ministry of Finance in government of India always talk of health of bank, health of loan assets, and quality of customer service but never talk on Human Resource. They have never tried to assess and ascertain whether employees who are working in various branches are really enthusiastic to show excellent performance. Fact is that everybody who is interested to move fast in career in busy in keeping immediate boss happy or to keep his godfather at higher offices happy, not by work performance but by offering costly gifts and by extending red carpet welcome to visiting officials. Such flatterers manage costly gifts not by spending from their own pocket but by instructing to their valued customers to manage gifts for bosses.

When customers spend lacs and crores on providing gifts to bank officials, bank management should never expect quality financing from Branch officials. As such quality of assets shown in their balance sheet would never be safe and sound. Similarly Customers service is good for those customers who spend huge money on bank employees and on officers who visit branches from higher offices and on officers who are number one flatterers of higher officials. Flattery is the key to success in promotion or to get choice posting. Customer service or quality of asset is totally irrelevant. Most of senior employees, hard workers, honest performers and devoted officers are frustrated and demotivated and passing through depression or various diseases. They are neither given annual increment nor treated fit for promotion. Juniors are selected for higher post at the cost of dignity of seniors. Obviously when there is no self respect for working officials there is no interest left in the mind of good worker toward quality of customer service or the quality of loan assets created by bank loans.

RBI has never tried to assess why banks are directly recruiting officers in higher scales and createing frustration among existing senior, experienced and talent officers and clerical staff. Why in the name of marketing banks are spending crores of rupees on MBAs who know nothing about banking? I therefore without any hesitation say that selection of CMD. ED.of a bank is defective which promotes not honesty or work culture only flattery and bribe culture.  In such position Damodaran committee report on improvement of customer service will prove futile and ineffective just like other committee reports.

Only happy servant can extend good customer service. It is foolish to imagine of improvement in service when serving employees are not inclined to do so. Ten men can pull a horse forcefully to a pond but cannot force horse to drink water. In Private sector, the more an employee is old, the more he is treated as loyal, reliable and trustworthy. Senior employees in private sector are highly respected and treated as good as owner. But in public sector banks, importance of an employee specially in officer cadre increases not by dint of work or seniority but by dint of flattery, gifts and bribe only.

Advocate of Congress Party

Kapil  Sibal , Ms Sonia Gandhi, Mr. Rahul Gandhi, Mr. Digvijay singh, Mr. Chidambram , Mr Pranab Mukherjee, Mr. Manish Tiwari, Mr. Manu Singhwi ,  Manmohan Singh , the great Prime Minister, the great economist and the great reformer and all VIP leaders of Congress Party were ridiculing CAG report only a few days ago.  Loyal advocates named above of Congress Party left no stone unturned to shut the mouth of crying leaders of Opposition parties demanding JPC in 2G scam.

Mr. Kapil Sibal was so much shameless that he even challenged the CAG report and named the report as bullsheet.Top leaders of Congress Party were openly denying the charges and frequently told the media that there was no truth in 2G scam. It is they who spoiled 20 precious days of the Parliament and not members of opposition parties. It is usual practice that thieves after committing robbery willfully cry loudly  “thief, thief, thief “ to get rid of police action. Similarly leaders of Congress Party were blaming NDA government for 2G scam and never accepted JPC.

 It is only Supreme Court that has made them silent , otherwise they would have never accepted that there was a scam and could have saved Raja and his associates in 2G scam. Congress Party is full of corrupt leaders and hence number of exposures of scam during the tenure of UPA is increasing. Even other partners in UPA are masters in scam.

CBI the main puppet in the hands of ruling party is also taught a lesson by Apex Court. This is why at least some important persons have been arrested. Now it depends on CBI whether they submit charge sheet with full support of oral witnesses and adequate documentary evidences or allows the case to be rejected as other cases related to VIP and powerful rich persons were rejected in the past.

Leaders of Congress Party named above should now at least cover their faces and go deep into hibernation.

They do not have now any moral right to preach sermons to public, to innocent voters and to world community.

 Entire world has seen and witnessed the exposure of one after other scam. FIIs will no doubt fly away from Indian market slowly if the growth of Corruption is not stopped by any revolutionary leader. People are now very angry and they will dethrone Congress leaders if they do not mend their behavior and stop malpractices completely. Till now, none of action of Congress party leaders is able to demonstrate that they are working seriously and honestly to stop malpractices.

www.callforjustice.in

Best Planning but Worst Execution

Posted February 16, 2011

India has been pioneer in best planning and has always been rated as number one in Planning. During last sixty years of freedom India has always framed best policies and formulated very attractive plans. Unfortunately Indian government and Indian politicians have invariably failed to put their plans and policies into action in true spirit. Planning is the best in practically all government departments, all PSUs and all public sector banks. But all plans are executed by implementing individuals and agencies with a hidden motto to earn illegal money.  

This is because the persons who are supposed to execute the plan into action are corrupt or inefficient. Execution of plan in our country is the worst because the persons who are supposed to follow the policies, rules and laws are themselves violators of the same. Good officers are never allowed to perform better; rather they are sidelined or removed from the mainstream. Bad and corrupt officers are chosen for responsible, powerful and prestigious posts humiliating good officers. To add fuel to fire, Indians officers know how to cook the figures and how to make the balance sheet of performance attractive. Politicians know the art of befooling innocent voters by making unachievable promises. Politicians know the art of dividing the society to continue their rule.

It is therefore desirable that Indian government and top ranked officers of various departments first  discard making plans , stop wasting time in making policies immediately and concentrate their entire energy for at least one year on real and actual development of human resources who execute the golden plans and policies. Government and every departmental heads have to demonstrate by their actions that good and honest performers are awarded and bad and dishonest staffs are punished. Politicians have to learn giving tickets for election only to good performers and stop calculating winning prospect on the basis of caste, community or the wealth of the person. Media has to stop portraying all stories of success or failure based on caste and communities. Politicians and top ranked officers have to stop arbitrary transfers and whimsical promotions to juniors and incapable staffs at the cost of good and capable staff.

Politicians have to ponder over why, after all their efforts; number of honest workers in the government and in government offices is shrinking whereas that of corrupt officers is increasing year after year. It is need of the hour to decide whether mere formulation of plans is enough for the development of the country and it is desirable to answer why the GDP growth said to have been achieved by current government is shared by only rich people who constitute hardly five percent of Indian population.

Politicians have therefore to learn first to give value to good workers, good ministers and good people in general. Humiliation and disrespect to Merit in the name of reservation to some caste or the other is also one of the various reasons for continuous erosion in Indian values.

I therefore make an effort to substantiate my views by giving some focus on recent stories of corruption or price rise or maoist extremism.

Kapil  Sibal , Ms Sonia Gandhi, Mr. Rahul Gandhi, Mr. Digvijay singh, Mr. Chidambram , Mr Pranab Mukherjee, Mr. Manish Tiwari, Mr. Manu Singhwi ,  Manmohan Singh , the great Prime Minister, the great economist and the great reformer and all VIP leaders of Congress Party were ridiculing CAG report only a few days ago.  Loyal advocates named above of Congress Party left no stone unturned to shut the mouth of crying leaders of Opposition parties demanding JPC in 2G scam.

Mr. Kapil Sibal was so much shameless that he even challenged the CAG report and without any hesitation ridiculed CAG report .Top leaders of Congress Party were openly denying the charges and frequently told the media that there was no truth in 2G scam. It is they who spoiled 20 precious days of the Parliament and not members of opposition parties. But it is usual practice that thieves after committing robbery willfully cry loudly “thief, thief, thief” to get rid of police action. Similarly leaders of Congress Party were blaming NDA government for 2G scam and never accepted JPC.

 It is only Supreme Court that has made them silent , otherwise leaders of ruling parties would have never accepted that there was a scam and could have saved Raja and his associates in 2G scam. Congress Party is full of corrupt leaders and hence number of exposures of scam during the tenure of UPA is increasing. Even other partners in UPA are masters in scam. Birds of the same feather flock together.

CBI the traditional puppet in the hands of ruling party is also taught a lesson by Apex Court. This is why at least some important persons have been arrested. Now it depends on CBI whether they submit charge sheet with full support of oral witnesses and adequate documentary evidences or allows the case to be rejected after wasting a decade or two as other cases related to VIP and powerful rich persons were rejected in the past.

Leaders of Congress Party named above should now at least cover their faces and go deep into hibernation.
They do not have now any moral right to preach sermons to public, to innocent voters and to world community.

 Entire world has seen and witnessed the exposure of one after other scam. FIIs will no doubt fly away from Indian market slowly if the growth of Corruption is not stopped by any revolutionary leader. People are now very angry and they will dethrone Congress leaders if they do not mend their behavior and stop malpractices completely. Till now, none of action of Congress party leaders is able to demonstrate that they are working seriously and honestly to stop malpractices.

I salute Subramanium Swamy and Mr. Prashant Bhushan  like persons who courageously moved against the misdeeds of the government and exposed the ongoing scam in the country under the banner of Congress Party, Total amount of loss to the country through various scams exposed during last year 2010 on account of corruption perpetuated by leaders of UPA amounts to many lacs of crores of rupees and still leaders of Congress Party in particular and that of UPA in general  always blame NDA government, or BJP chief Ministers whose leaders has caused almost no loss to the state government under their rule. Maximum loss to the government caused by BJP Chief Ministers or during NDA government (including state government) would total to hardly a few crores of rupees.

 “Ek Hira chor hai to dusra Khira chor Hai”. Still diamond thief is blaming the later to get rid of humiliation from the public.

“Bhai  eh to public hai, eh sab janti  hai”. Every nine out of ten person will definitely and categorically accuse leaders of Congress party and that of UPA for prevalent corruption in the country and hardly one person will point out his accusing finger towards leaders of BJP or NDA leaders.

Person like Narendra Modi and Mr. Nitish Kumar are far far better than learned clean Prime Minister Mr. Manmohan Singh. A clean , helpless and ineffective leaders like Manmohan Singh cannot lead India to greater heights and so called story of development hyped by UPA government is getting punctured slowly by exposures of scams one after other. The greatest loss to the country caused by UPA government lead by Manmohan Singh is nothing but loss of image of the Nation in the International forums and among world community.

Prime Minister Mr. Manmohan Singh says

Corruption is the greatest
impediment in good governance, in development, in equi -distribution of
GDP growth, in delivery of justice and it also tarnishes the image of
the country in the world.  

He is PM for last more than six years. But he could not do anything to stop corrupt practices. He is helpless.

Home Minster Mr. Chimdambaram has admitted at Devos
economic summit that hardly 50 percent of fund allotted for
development is spent on actual work.

Mr. Rajiv Gandhi during his tenure as PM had admitted 20 to 25 years ago that hardly 10 to 15 percent of development fund reaches in the hands of real beneficiary. Similarly fund spent on development of infrastructure is lost among various middle men.

More clearly contractors have to
pay bribe to various officers and ministers to the tune of 50 per cent
of value of work order they are allotted, even if it is done through
legal process of tender.

Not only this even for good posting and timely or before time promotion one officer has to give bribe to competent authority. Even to get rid of transfer to remote and critical posting one has to offer costly gifts to transferring authority. Why not will he flatter to his boss? What is the need of doing honest duty for which an employee is paid if all normal and abnormal benefits accrues to him by dint of only flattery and by offering some costly gifts or by paying prevalent rate of bribe? It is better to earn and let others earn bribe, This is the slogan of the day when economic reformation , economic freedom is given to all in addition to fundamental freedom given by Indian Constitution.

As such Government is helpless in controlling Mafia contractors ,corrupt officers, ,investigating officers, CBI officers because all are appointed on the basis of quality of flattery they extend to Ministers and their immediate bosses and honestly share the bribe they earn with  Ministers, babus and government servants. A gang of flatterers run the government. A gang of flatterers surround each top ranked officer in each office. Culture developed in the government department is open secret which is “earn and let others earn”.

Never be dishonest in offering share of bribe you earn with the bosses and be sure that none can harm you, you will grow in power, you will grow in wealth and you will in social status and social recognition.

Honest and devoted workers are rejected in promotion processes. Dishonesty is the best policy at least when Congress Party is in power at center or in a state. Leaders of Congress Party ware well versed in blackmailing opposition parties on the issue of historical case of so called communalism or secularism or keeping voters pleased by useless toys of promising caste based reservation to various segments of society.

PM has admitted rampant corruption not once, twice or thrice but many
times during six years tenure of PM.I am unable to understand who has power and who is empowered by voters to cure cancer of corruption.

In our country when PM has got no
time and no capacity to ensure

that legitimate instruction given by him
to telecommunications minister is obeyed by Mr Raja in true spirit. He allows the fraud to perpetuate for two to three years even though instruction given is not followed. He does not think it wise to ensure compliance of his orders.

This is why all offices in our country only issues guidelines but never take efforts to ensure its execution in the field and never try to punish those who violate the laid down norms. Laws are made only for the sake of laws. Rules are made not to be followed but to please the opposing persons. Leaders preach the sermons to public but do not think it necessary to follow the same. One after other committees are set up to investigate the allegation of corruption against government officers and ministers simply to close the chapter once for all or to shut the mouth of revolting people or to silence the political parties who put hindrances in their path which leads to acquiring maximum personal wealth.

When
PM can allow willfully Mr. Raja to cause loss to the country to the
tune of one lace crore of rupees,

he cannot dream of good governance.
His action demonstrates that it is wise to remain silent spectator of
all corrupt practices and enjoy the fruits of power and encash his
clean image. He think is wise and prudent to remove honest officers and honest ministers than to take the risk of survival of the government by stopping corruption. It is not surprising that all ministers and all officers working under him in the entire country in various offices follow him and perpetuate the same unhealthy practice as our learned and clean image Manmohan Singh do.

None of complaints lodged in the office of PM or that of FM or President of India or for that matter to any government office or to any departmental head by lacs of aggrieved persons in the country is properly attended to ensure its logical
conclusion. When office of PM or CM or that of President of India is
inactive and when they fail to demonstrate their value system they often
espouse and preach before public they cannot expect and  should not expect
junior officers to work honestly and sincerely.

Finance Minster Mr. Pranab Mukherjee and his fellow colleague Minister for Agriculture
Mr.Sharad Pawar have also almost surrendered before
relentless price rise. They have completely failed to control price
rise and inflation. They say that government has got no magic wand which can stop price rise. They have openly admitted that price rise has gone out of their control because they cannot punish officers working in various government departments, they cannot force their fellow politicians to follow discipline , they cannot punish black marketers and hoarder business men because it their financial contribution which makes the political party able to fight election.

To be more clear election funding is possible only when black money is allowed to grow .It is therefore entirely foolish to dream that government will ever take real and effective steps to stop black money creation in the country. Government cannot stop growth of black money within the country, how can they get success in bringing back black money parked in foreign banks. When CMD and ED and all top bankers are corrupt they easily allow black money movement. All black money move from one bank to other bank through Indian banks only.  

Black money is always remitted to foreign centers with the knowledge and with the support of corrupt bankers, corrupt ED officials, corrupt IT officials, corrupt custom officials and all other corrupt officials who are supposed to stop movement of black money or creation of black money. After all it is the money of corrupt politicians and money of corrupt officers which will be unearthed if they take corrective step and to cure the cancer of corruption.

All Governments consistently have willfully made the judiciary weak and ineffective and none of the government have ever bothered to bring about judicial reformation or police reformation as promised by politicians from time to time.

They cannot reverse the policy of liberalization and globalization launched by honourable clean Mr. Manmohan Singh  in 1991 because these policies of reformation have given them enormous opportunity to accumulate wealth .And it is the unregulated freedom given to business community that they earn unreasonable profit and earn hundreds and thousands of crores of rupees. It is top businessmen of the area who agree to give considerable amount to politicians of ruling party to get it back in the form of tax concessions, subsidy and tax evasion. None can stop this vicious circle and none can cure this cancer of corruption. Government pretend to control price rise but they cannot and do not want to control profit under the banner of economic liberalization. Indians cannot dream of socialistic approach when the entire set up is meant for capitalists.

Whimsical transfers, arbitrary posting and arbitrary promotion are the root cause of all social malady and economic disparity growing year after year. To add fuel to fire is the weak judicial and police system in the country.

As such any government cannot imagine of real reformation in the country. Government can provide real relief to poor common men only when they are able to make police active, effective, quick, honest and real social workers, real security providers and real fighters against injustice. Freedom granted by Late Mahatma Gandhi is lost, completely lost and it confined only a few hands of politicians, government officials and a few business men.

India needs to bring about desired reformation in police and judicial system as early as possible. Otherwise number of extremists will grow, network of Maoist and terrorists will grow and ultimately India will face the same situation as Egypt and other Arab countries are facing today .Anarchy will replace democracy, finish the agenda of so called secularism and also force replacement of  capitalism of Manmohan Singh with socialism of Nehru ji and Indira ji.

Indian politicians have been harping on poverty alleviation for last 40 years. Since the days of bank’s nationalization they have changed the slogan of Social welfare to financial inclusion but the there is no actual improvement visible in the pitiable position of 90% of Indian population. Only God can save common men of India until our judicial system and police system is honest and perfect, active and effective and until they are provided adequate manpower and adequate infrastructure to fight against perpetrators of injustice.

16.02.2011

Social Exclusion is Financial Inclusion

In seventies and eighties there was huge pressure from government of India and Reserve Bank of India on Public sector banks for opening of branches in rural areas so as to cover all villages. As per policy of Service Area Approach introduced by RBI each branch of a bank had to serve 15 villages and cover 10000 of population. At that time Social Banking was the slogan of bankers as against Financial Inclusion in the recent days. There used to be Block Level Banker’s Committee (BLBC) constituted by Lead Bank Manager, Branch Managers of all banks in the block and block level officials to prepare an annual credit outlay plan for the year for the service area and monitor its implementation. Thereafter District Level consultative Committee (DLCC) and State Level Banker’s Committee (SLBC) were constituted to monitor the quality and quantity of progress.


But unfortunately this entire exercise in the real field proved formal and futile during last thirty years of its existence. Village level, District level and State level plans formulated by BLBC, DLCC and SLBC proved a futile exercise so far as the real welfare of villages, elimination of poverty and idea of social welfare is concerned. This is a bitter truth that all these plans failed miserably and position of villagers did not improve despite several poverty alleviation program undertaken by PSU banks in one name or the other during last for decades.


Officials of banks and state government offices still complete these formalities of conducting meetings, formulating annual plans and then submitting the report to Banking Division and RBI but there is absolutely no such sincere officials at field level branches of banks or at block offices to take care of the above mentioned service area plans formulated at various levels and practically there were a very few bankers ready for their honest and corruption free execution.

In the year 1991 government of India adopted the path of economic reformation in line with global policy of liberalization, privatization and globalization (LPG). Banking reformation also was also planned and put into action under the leadership of the then Finance Minister Mr. Manmohan Singh. Banks were given huge freedom, rates were deregulated, licensing policy was reframed, private banks were opened and gradually banks changed their working style from traditional social banking and mass banking to Class banking, from social service entity to profit making unit and from social banking to profit banking.


In view of the fact that various rural branches were running in loss and since branches were not found to be economically viable , several branches of banks were closed in later part of nineties or turned into satellite branch only because there was no scope for improvement and no idea to earn profit. Villagers, who lived in the service area of closed branches were forced to contact other branch of that bank at farther place or to contact some other nearby bank for financial assistance or for any banking operation. During this period not only poor villagers were discarded and left at the mercy of traditional money lenders for exploitation, but even banks were also constrained to write off huge amount of loans and advances disbursed in the villages.


It is also true that more than 50% of branches of all PSU banks are situated in rural areas and in remote villages to serve the villagers .But is is a bitter truth that  more than 60% of the advances made by rural branches are Non Performing assets in the bank and unfortunately there is neither a will to recover the money lent by bank nor bankers have the capacity to recover the NPA from recalcitrant borrowers in views of various local or legal constraints.


Government of India had to infuse capital several times to make PSU banks to make them strong enough to compete with global banks. Merger of banks were point of debate at all level so that their lending capacity may increase and they may be able to finance to bigger and bigger project .Consolidation of banks was the idea of Ministers and top bankers in the era of reformation to compete with foreign banks. In brief the choice of bankers became top industrialists and top traders and not poor villagers. Banks now consider wholesale and bulk lending instead of retail lending. Ambiance of most of the branches have been changed and decorated to suit rich society and to make it comparable with private and foreign banks which were by birth made to serve rich class people.

It is worthwhile to mention here that Banks were nationalized in 1969 by Late Indira Gandhi to make banks accessible for poor villagers and to enable poor villagers to come out of clutches of local money lenders who were exploiting villagers by charging exorbitant rate of interest.. Unfortunately, poor villagers have again been thrown out of bank’s branches during last twenty years of reformation in banking. In the new set up poor villagers are directed towards Micro Finance Institutes (MFI) or advised to come through newly formed broker called as NGO or form their own Self Help Group (SHG).


Banks gradually turned to non banking business like insurance, and demat services to earn more and more non- interest income and to stop erosion in profit. They reduced manpower and opened hundreds of new branches to sustain profit .Banks are exploiting bank employees as private banks are used to since the pre nationalization era. PSU banks realized that it is better to indulge in bulk lending than to spoil time in rural lending.PSU banks are working with  less and less staff because they have realized that profit earning by PSU banks competing with private banks is not easy .


In this process they have left monitoring part and increased operation and financial risk. NPA has been increasing year after year though hidden in balance sheet to a great extent. Still more than 90% of rural branches of all banks are having more than 60% of their advances as NPA. In the changed situation banks are trying to show false and cooked profit by hiding their bad assets or selling their bad assets to ARCs or by imposing service charges for every banking operation they do in the bank.


Banks are trying to earn Non Interest Income because their Interest Income has sharply come down due to unwarranted rate war declared by government under the frame work of reformation policy. Profits of PSU banks are facing continuous erosion due to increase in Non Performing Assets and hence bankers are least interested in rural lending which involves comparatively more manpower and enlarged network of branches.

Now after twenty years of reformation RBI has once again realized that need of the hour is to serve the villagers. New word called as Financial Inclusion has become the slogan of bankers. Old wine in new bottle .Earlier it was social banking and now it is financial Inclusion. But as a matter of fact that all activities undertaken by top banks indicate that banks are trying to achieve the targeted purpose of  Financial Inclusion by merely opening No Frill saving accounts of poor villagers but in true sense , poor villagers are facing Financial exclusion as because they are being directed by bankers towards MFI or to NGO or to form SHG for getting bank finance. Poor people in villages and towns have now to depend on ATM and biometric cards for cash deposits and cash payment and on MFI, NGOs and local money lenders for availing loan facilities. Banks as also government of India think it wise to make finance to MFI and NGOs in hundreds of crores of rupees at higher rate as much as 18% and then allow MFI to make finance to poor people at higher rates i.e. upto 36% .


Financial Inclusion is used merely for opening of No Frill accounts and to serve the purpose of UID (Uniform Identity Number).The word ‘Financial Inclusion’ is frequently used by political leaders and government officials along with bankers. But in fact no real improvement of poor people has taken place during last twenty years of reformation policy initiated by the government in the year 1991. It will not be an exaggeration to say that poor people were better served during the period 1971 to 1990 (after nationalization of banks in 1969).


To add fuel to fire RBI is again putting thrust on bank management to open more and more new branches to reach the level of each Panchayat. As per new directive all PSU banks have to ensure that there is one branch or BC in each village or in cluster of 2000 population.


Bankers have burnt their fingers in large scale expansion program under Service Area Approach plan of seventies and again they are committing the same blunder by opting unwarranted expansion of branch network to spread it upto Panchayat level without increasing manpower to suit the need of branch expansion. The new word ‘Financial inclusion’ is nothing but is old wine in new bottle and this continue to make mockery of poor people.


Under the umbrella of reformation banks have stopped recruiting fresh staffs to save staff cost and to earn more and more profit in line with other capitalists who are exploiting Indians by way of labour exploitation and by indulging in large scale profit making. Business of banks have multiplied ten times during last five years but number of staff working in banks have come down compared to what it was five years ago inspite of addition of new branches and new businesses in banks. Obviously banks in general have discarded taking adequate care of their assets due to which NPA is in rising trend. Not only this, employment opportunities available to educated youth are also shrinking in the era of reformation.

Obviously we need to debate whether banks are serving poor people, whether policy of capitalism adopted by Government of India in the name of economic reformation suits to Indians environment and whether growth of five percent of population of Indian is the real motto of the government and the real purpose of GDP growth. We Indian have to ponder over the prevailing policy of capitalism and discuss whether it is more important or we have to revert back to the policy of socialism or to adopt a middle path in unison with the policy of Mixed economy. 


Poor and middle class of Indians who constitutes 95% of population cannot even afford quality education, quality health care services, quick justice in court and quality food in our country because  rich and affluent class have been given complete freedom to exploit consumer and earn profit without any fear of administrative action under the policy framework of reformation called as LPG ( Gas fuel when used without care may cause huge damage by fire ).As such this large segment of society have to depend on bank’s loan even for all their essential needs food, health care, education and so on.


Last but not the least PSU banks in general are running in acute manpower shortage but still management of the bank is least inclined to recruit fresh manpower to keep cost of establishment at the lowest. Besides there is complete lack of devoted, talented and honest workers due to increasing number of corrupt officers sitting at top post who discourage good workers and hence the assets of the bank are undoubtedly at stake and the health of the banks has to face is in way sound. 


As such large scale expansion undertaken by branches may prove to be suicidal activity. It is undoubtedly true that the word Financial Inclusion has already become a laughing stock for common men. Neither bankers nor poor people are happy and safe. Even banks are not safe but more confused because they are unable to decide which path they are actually to go when government changes policy so frequently and in a impractical way. 


However top bankers are doing good show business by organizing Loan Melas in the name of financial Inclusion or by adopting a few girl children or by adopting a few villages during their visit to big towns to celebrate Financial Inclusion. It is undeniable truth that the amount spent on such dignitaries by bankers with the support of bank’s customers is many times more than what is actually spent on poor villagers in the name of fanatical inclusion. Even RBI governor or CMDs of various banks are doing such show businesses and ultimately all at the cost of common men.


It is necessary to first understand what is going on in the country in the name of banking reformation .When banks are healthy they can enhance the capacity for growth. Banks may be healthy when politicians and other controlling officers are honest in their actions and in their behavior.


 Banks will do their real job when top bankers are not corrupt and when they stop lending by taking bribe or costly gift. Banks will be healthy when discretionaly powers of top bankers are taken back and transparency is restored in banks.


 In the name of merit and enhancement of efficiency and to compete with private banks,  top bank officials in PSU banks  are now-a-days earning money by way of fresh recruitment, transfers of existing staff to choice places and promotions to juniors. Honest workers in banks are not at all happy with the treatment they get from their corrupt senior officers. Flattery has become the key of success in banks. The more one is corrupt the more he is promoted and elevated to powerful post. 


Lobbying has become the master key of success. And to add fuel to fire the role of WWW has become more powerful .In such environment, it will be foolish to expect good results from PSU banks, it is like dreaming in day light. Financial Inclusion has become a totally Bakwas (non-sensical talks) as hitherto was the fate of the term Social Banking.


Planning without proper execution is of no use. To learn from past experience is necessary to stop recurrence of mistakes in the name of welfare of poor people of India. None can stop widening of gap between the rich and the poor until Indian politicians and officials are honest from the core of their heart.