LIC is a Govt. institution which gets huge premium, at times, from black money holders. There are shrewed lic agents who are becoming corepati agents in this way.
Target is what business is looking at. To achieve it, the people who work for it will find different ways. When it is achieved, no question is asked how it happened. Many says it is "business trick". Banks whether it is PSU or private will all adopt this method. Even Income-tax people do it. They collect more tax just to achieve the target. (If Govt. refunds it with interest who bothers?). The authorities whoever it may be are in the forefront in breaking and ignoring the law/regulations.
I saw political leaders who prevent the borrowers from paying the loan amount. Goons in them encroach the land and finally get them regularized with the help of authorities.
Why only Pvt. banks? Ignoring regulations is taken as granted as a right in India. Those who frame regulations in India are the ones who ignore it first. It seems to be treated as a credible job if we can violate any law and if one goes to jail for that, the credibility is considered to be so high.
In case of Banks, they are at least doing a service to the people even if it is charged for. I find no harm if they convert the black into white, which then becomes taxable and transparent. In other words, black becomes too dark, it works as a "blackhole" attracting anything into it and grows beyond our reach. And those who frame laws to curb it seems to be those who accumulate it and send it to foreign banks where we have no reach at all.
Private banks do all such sort of malpractices all the time. The moment you enter the bank, you get a sense that they are waiting for their preys to make a fool of them and ill advise them only for their own profit motive and hefty bonuses. The brazen way the employees treat you shows that they are acting only on the tacit directions from the top management and are hand in glove with the regulatory authorities also.. The govt. should take a very stern action against the banks otherwise the public will lose faith over the banks which were traditionally considered reliable...
PVT BANKS CAN MANIPULATE ANY THING IN THE COUNTRY TILL THEY GET EXPOSED.THIS IS EYEWASH. HOW THEY MAKE HUGE PROFITS INSPITE OF GLOOMY ECONOMIC CONDITION IS A MATTER OF CONCERN. PUBLIC SECTOR BANKS ARE MORE RELIABLE THAN ANY OTHER PRIVATE BANKS CONSIDERING THE SCAMS INVOLVED. ATLEAST OUR DEPOSITS ARE SAFE
pvt banks concentrate on profit they used to manipulate rules government and public every body are aware of it there is black money in the country every body knows it but then what is the remedy who will bell the cat
I dont think all private banks ignore regulations. The reported incidents might be a few bad examples. However, I strongly believe that the bank and the management have to take responsibility for these incidents. They cannot say that these are one-off incidents or rare cases and brush it off.
RBI needs to take the senior or top brass as well as experienced managers to task and bring them to justice. RBI should also ensure that each bank makes a provision for Operational Contingency or Risks like this and these funds should be used for meeting expenses related to the funds instead of hurting Profit and Loss and EPS, which harms shareholders. The shareholders should be protected at all times.