Re: Bank Crisis Hits India, Many Accounts Wiped Out, People Left With Nothing
Absolutely! Not only the Central Bank of India is to be blamed but I guess the Government of India and all its regulating bodies that have failed to do their part should be blamed as well!
But on the brighter side, I assume the Indian Government will further strengthen and improve their regulations and learn lessons from this incident to prevent it from ever happening again in the future or at the very least minimize the possibility of its occurrence - thus making their banking system more robust to retain the confidence of its stakeholders.
But on the brighter side, I assume the Indian Government will further strengthen and improve their regulations and learn lessons from this incident to prevent it from ever happening again in the future or at the very least minimize the possibility of its occurrence - thus making their banking system more robust to retain the confidence of its stakeholders.
I don't know how you can blame the government when this scam was perpetrated by a few high ranking bank official with no links to any of the political parties. I would rather congratulate the government for acting quickly and arresting the accused before they were able to flee to safe heavens (as many of the criminals have done in the past). The government also froze the stolen assets, so that the account holders could be reimbursed for their losses.
I guess I'll stand by my opinion to blame the Indian government since I believe they have the duty and obligation to protect their citizens from this kinds of frauds in the banking sector even if they are not directly linked to that fraud. But unfortunately, India's regulating bodies and other Government entities with banking jurisdiction failed to prevent this incident probably because of poor implementation of rules and regulation in accordance with it accepted banking policies and standards.
As per the latest updates, the government has recovered around 80% of the stolen amount and this will be reimbursed to the users sometime soon. And many of the scammers are likely to forfeit their own fortunes, in return for a milder punishment. Therefore I expect the victims to be compensated in the range of 90% to 100%, and here I would be rather praising the government rather than complaining about it.
Is that so? If this is true, then I must commend the Indian Government for this swift action but I doubt the depositors will be compensated by more than 90 percent since the bank had already been drained with NPL and its depositors only have limited depository insurance but not unless the Government will intervene and absorb all the banks liabilities which I also doubt will not likely to happen.
Also, maybe you could provide us links to the latest updates for reference.
