Wednesday, January 1, 2014

Aspirants for Bank License

Some of the aspirants for bank License are involved in construction activities and have indulged in all possible mal practices and taken  the buyers of flats for a ride. Fudging of accounts, non payment of Corpus funds collected and violation of the laws of the land particularly  relevant to the land and properties etc have been observed to be a rule rather than an exception  with these construction companies and many cases have been pending against them in various courts. Since banks deal with basically  depositors' money and their safety is the utmost concern of the Reserve Bank and the Government, the aspirants  for bank License have to  be necessarily scrutinized and found  to be  observing and complying with the laws of the land  and have been fair in dealing with all their customers. Adherence to ethics and prudence to the  accounting principles cannot be ignored by any prospective candidate for bank license. Will the RBI ensure this?

Dr.T.V.Gopalakrishnan

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