Government of India is
going to commit another blunder by allowing certain banks to operate in
Pakistan. They should understand that these banks have failed to comply KYC
norms in domestic branches of banks, monitor their books properly, have failed
to keep their assets in good condition and failed to keep their man power happy
and devoted performer. In any organization where number of corrupt minded
persons are in huge number and where corrupt persons are more effective and
powerful , one cannot imagine of compliance of statutory , legal , social and
financial discipline honestly.
Any foul game and all
types of conspiracy can be executed to disturb India just by paying
some money or offering some wine and wealth to an official working in
any office. Department of Customs, ED, Border officials and all are
clouded with persons of doubtful integrity and this is
why pilferage are taking place , illegal crossing of
borders, arms are being illegally imported unabated in India since long
and what not.
Even foreign banks
operating in Indian land and which have outsourced their business in India are
now under scanner because of large scale money laundering and help to drug
smugglers and terror groups. Now if these banks are allowed to operate from a
world famous terror center Pakistan, one may imagine the disaster likely to grip
already sick banks and sick economy of the country.
I hope the ruling party
or opposition parties who claim to be guards and patriots for the country
should reconsider their decisions of allowing Indian banks to operate in
Pakistan. Everyone knows that bus services and train services started between
India and Pakistan are being utilized by foreign based terror groups to export
terror to India.
It is open secret that
conspirators and enemies of India are bent upon disturbing India from all
angles, financials, and social and now through internet too. And terrorists get
success in execution of all their bad intended plans. By SMS and using fake
website they created panic during last week. Nothing is in control of India. It
is painful that they first allow miscreants to enter into India, mix with
Indians and completely execute their mischievous task and then Indian
government cries for dialogue.
Please for God sake do
not add fuel to fire. Please do not play with fire. Enough is enough. Please do
not make experiment after experiment with Pakistan and endanger the unity and integrity
of the country. Naxal, Maoists and other extremist groups are in good number in
India and are already working as agents of foreign based terror groups to
disturb peace in India and now they will have financial help through Indian
banks operating from Pakistan and vice versa.
RBI and Government of
India have been crying and impressing upon bankers to open accounts only after
strictly compliance of provisions of Know
Your Customers called as KYC norms and
anti money laundering act but state run banks in general have failed to ensure hundred percent
compliance of laws in this regards and the bitter truth and ground reality
tells that compliance has been less than 20 percent till date .
Despite all threatening to
banks working in India, government banks have failed to ensure 100 percent KYC compliance,
how can they be expected to ensure the same in Pakistan where all works are
possible after application of intimidation and coercive tactics and where role
of wealth, wine and woman is predominant in every sphere of life.
At least past record of
Indian politicians and administrators says that they could never get succeeding
Pakistan government to provide safety to Indians working in Pakistan.I hope GOI
will take lessons from Past events.
Further it is more
astonishing that the permission has been given to top ranked those two banks
which have broken all past records of bad assets. SBI earned profit in past
years by short provisioning on staff terminal benefits and for bad assets. It
is pertinent to mention here that SBI Chairman Mr. Pratik Choudhury has been
begging since long release of interest free CRR fund or for payment of interest
on fund parked with RBI in compliance of CRR fixed by RBI to increase
profitability of the bank. It is simply because he has understood the bitter
truth of his bank, he better knows the voluminous bad assets hidden in the
system and still considered as standard assets either by tampering with system
or by restructuring or by ever greening of loan processes .
I would further like to
add here that lacs of crores of rupees out of government fund central or state
meant for various developmental projects have been parked mostly in branches of
SBI. If state and central government demands at least 10 percent interest on
deposits i.e. equal to rate their base rate fixed for lending ,made by the
government in these banks, there is no doubt to me that their entire profit
will vanish and most of the banks will book huge loss. There is no doubt that
the crisis which will erupt after demands of interest by state and central
government on the fund kept in SBI as interest free deposit will be more dangerous and disastrous than the
crisis which had engulfed many banks in USA and UK in the year 2008.
State Bank of India, Bank of India allowed to operate in Pakistan
SINGAPORE: India and Pakistan have agreed to allow two banks each from both the countries to set up branches across the border, Governor of the State Bank of Pakistan, Yaseen Anwar said today.
"We have held discussions with the Reserve Bank of India and both sides have agreed to issue a full banking licence to two banks of each country," Anwar told on the sidelines of a conference organised by Institute of South Asian Studies.
The two Indian banks that will be allowed to operate in Pakistan are State Bank of India (SBI) and Bank of India ( BoI).
On the other hand, quasi-state owned National Bank of Pakistan and privately-owned United Bank Ltd. will be running full-banking operations across the border, once licensed by India.
"It will take few months to approve Indian banks' licences on receiving them," he said.
"We are ready to go tomorrow to India" to set up banking operations, Anwar said.
Discussions have been held with RBI Governor D Subbarao to issue banking licences, he said, adding that the process will help normalise trade relations between India and Pakistan.
Meanwhile, officials from the Bank of India in Singapore have recently visited Karachi for setting up an office in Pakistan, said Syed Hasan Javed, Pakistan High Commissioner to Singapore.
After HSBC, Standard Chartered India under US scanner
PTI | Aug 7, 2012, 06.37PM IST
NEW YORK/LONDON/MUMBAI: Outsourcing of key oversight jobs by global banks to India has come under the scanner for the second time in less than a month for exposing the US financial system to terrorists and money launderingrisks.
On the heels of a probe by the US Senate's Permanent Committee on Investigations pointing out major lapses in the work of HSBC's India staff, another UK-based banking giant Standard Chartered's outsourcing of key banking jobs to Indian shores have come under the scanner in the US.
A probe by the New York State's key banking regulator, the Department of Financial Services (DFS), has found deficient money laundering controls in outsourcing of work by StanChart to India, thus exposing the US financial system to terror financing and other risks.
http://timesofindia.indiatimes.com/business/international-business/After-HSBC-Standard-Chartered-India-under-US-scanner/articleshow/15390378.cms
The findings in these two separate probes have come at a time when the voices against outsourcing of jobs to India and other locations are gaining momentum in the US, ahead of the Presidential elections in November.
In an order last night, the DFS accused StanChart of hiding secret transactions involving USD 250 billion with Iran -- leaving the US financial system vulnerable to terrorists, weapons dealers, drug kingpins and corrupt regimes.
The DFS probe found that SCB had assured the New York state in May 2010 that it would take immediate steps to comply with the US Office of Foreign Assets Control (OFAC) sanctions. However, another regulatory examination in 2011 found continuing and significant Anti Money Laundering failures.
Among these, the bank was outsourcing its "entire OFAC compliance process for the New York branch to Chennai, India, with no evidence of any oversight or communication between the Chennai and the New York offices."
The OFAC is the designated US government agency for preparing list of entities with whom US citizens and entities are barred from doing any business.
Standard Chartered slumps 20% in India
The Standard Chartered Bank stock today plunged by up to 24 per cent in the Indian and UK markets, as the New York state in the US threatened to revoke its licence and charged it of USD 250 billion worth secret transactions with Iran.
At the Bombay Stock Exchange, the scrip fell 19.97 per cent to hit its lowest permissible limit for the day at Rs 83.15. On the NSE, the scrip was down 19.97 per cent at Rs 82.95.
At the London Stock Exchange, Standard Chartered shares plunged 23.9 per cent to 1,119 pence in morning trade.
The New York state has threatened to revoke the bank's licence after charging the UK-based global banking giant of operating as a "rogue institution" and hiding over 60,000 transactions worth USD 250 billion with Iran.
While the bank has refuted the charges saying that more than 99.9 per cent of its Iran-related transactions complied with the US regulations, the New York State Department of Financial Services (DFS) has charged StanChart of exposing the US financial systems to terrorists, drug kingpins and weapon dealers through its transactions with Iran for about 10 years.
In a 27-page order, the Superintendent of Financial Services Benjamin Lawsky of DFS said that "grounds exist for revocation of Standard Chartered Bank's licence to operate in the State of New York and that interim measures must be taken to protect the public interest."
The order accused Standard Chartered of operating as a "rogue institution" which was "motivated by greed."
Reacting to the regulator's order, Standard Chartered said it "strongly rejects" the position and portrayal of facts made by DFS.
In an order last night, the DFS accused StanChart of hiding secret transactions involving USD 250 billion with Iran -- leaving the US financial system vulnerable to terrorists, weapons dealers, drug kingpins and corrupt regimes.
The DFS probe found that SCB had assured the New York state in May 2010 that it would take immediate steps to comply with the US Office of Foreign Assets Control (OFAC) sanctions. However, another regulatory examination in 2011 found continuing and significant Anti Money Laundering failures.
Among these, the bank was outsourcing its "entire OFAC compliance process for the New York branch to Chennai, India, with no evidence of any oversight or communication between the Chennai and the New York offices."
The OFAC is the designated US government agency for preparing list of entities with whom US citizens and entities are barred from doing any business.
Standard Chartered slumps 20% in India
The Standard Chartered Bank stock today plunged by up to 24 per cent in the Indian and UK markets, as the New York state in the US threatened to revoke its licence and charged it of USD 250 billion worth secret transactions with Iran.
At the Bombay Stock Exchange, the scrip fell 19.97 per cent to hit its lowest permissible limit for the day at Rs 83.15. On the NSE, the scrip was down 19.97 per cent at Rs 82.95.
At the London Stock Exchange, Standard Chartered shares plunged 23.9 per cent to 1,119 pence in morning trade.
The New York state has threatened to revoke the bank's licence after charging the UK-based global banking giant of operating as a "rogue institution" and hiding over 60,000 transactions worth USD 250 billion with Iran.
While the bank has refuted the charges saying that more than 99.9 per cent of its Iran-related transactions complied with the US regulations, the New York State Department of Financial Services (DFS) has charged StanChart of exposing the US financial systems to terrorists, drug kingpins and weapon dealers through its transactions with Iran for about 10 years.
In a 27-page order, the Superintendent of Financial Services Benjamin Lawsky of DFS said that "grounds exist for revocation of Standard Chartered Bank's licence to operate in the State of New York and that interim measures must be taken to protect the public interest."
The order accused Standard Chartered of operating as a "rogue institution" which was "motivated by greed."
Reacting to the regulator's order, Standard Chartered said it "strongly rejects" the position and portrayal of facts made by DFS.
This fear of Pakistan is very dangerous. Banks are companies that deal with money. They would be in a losing business if they do not keep proper accounts. From my personal experience, I can say that Indian Banks are more conservative than most western banks. Dealing in Pakistan means larger business for Indian banks. City bank and American Express have been operating in India for better part of a century. Indians should not be concerned about operating in Karachi or Lahor.
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