The daily revelations of the PNB (LOU) scam have shaken the people’s confidence in the banking system. Essentially, business canaries have manipulated the banking system, bypassing protective mechanisms. The Reserve Bank of India’s (RBI) circulars directed banks to connect the Swift Communications System with the Core Banking System. Failing to do so has exposed the vulnerability of our banking procedures. Collusion between bank officers and scamsters has revealed that institutional corruption is rampant.
Scamsters use public money to become millionaires. The public banking system in India helps them do that. Bank managers should, in principle, not be risk averse. But risks can only be justified after a proposed venture is properly scrutinised.

Click here to read the full article, in The Indian Express