Human Intervention is a must to fix Frauds and NPAs in banks.

The problem in banks lies not in adhering to KYC norms but in Not Understanding the Customer ie UYC. The transactions when done in a concentrated manner confined to some  few accounts which are of recent origin should naturally arise some suspicion in the minds of officials. This does not happen in our scheme of things as mostly these are done using Technology without having any scope for human intervention. Here in lies the problem. There should be some human intervention to track transactions of suspicious nature and this can be done  only through outsourcing some experts having exposure to inspections and scrutiny of accounts in bank branches.. The  problem is that RBI seems to have stopped inspection of major branches particularly branches having huge Forex Business. The scrutiny of accounts on a surprise basis needs to be carried out in major branches by experts in Forex and loan accounts. Both Frauds and NPA problems can be fixed to a great extent by this approach

Dr T V Gopalakrishnan