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Public sector banks are much easier to defraud than private sector ones: Here's the proof

Public sector banks are much easier to defraud than private sector ones: Here's the proof

Finance
Clearly, it is much easier to defraud public sector banks than private sector ones in India and the figures speak volumes about the way the latter are run. According to the Reserve Bank of India‚Äôs (RBI) annual report for 2017-18, during 2017-18, public sector banks accounted for almost all (92.9 per cent) of the amount involved in frauds. While the private sector banks accounted for 6 per cent. With regards to the cumulative amount involved in frauds till March 31, 2018, PSBs accounted for around 85 per cent, while the private sector banks accounted for a little over 10 per cent. Banking frauds in general are on the rise. According the central bank’s annual report, the number of cases on frauds reported by banks were generally hovering at around 4500 in the last 10 years before thei
Indian banks, insurance cos increasingly embracing digitisation: US tech expert

Indian banks, insurance cos increasingly embracing digitisation: US tech expert

Finance
Indian banks and insurance companies are increasingly embracing digitisation in line with the government's 'Digital India' initiative, according to an American technology expert. The Indian government is giving citizens direct access and connectivity, shifting away from bureaucracy, observed Sandie Overtveld, vice president sales for Asia Pacific at Zendesk, a US-headquartered customer service software company. Traditional Indian enterprises are also going digital. Though there are some apprehensions, entrepreneurs are aware that might lose market share if direct customer-connectivity is not established through digitisation, he said. The Zendesk has built a portfolio of 2,000 Indian customers over the last two years. The government wants to engage the citizens and commercial enterprises ar...
Banks have first right over pledged assets, rules tribunal

Banks have first right over pledged assets, rules tribunal

Finance
MUMBAI: In a landmark ruling, the appellate tribunal on matters related to the Prevention of Money Laundering Act has ruled that Enforcement Directorate cannot claim rights over assets of people suspected of criminal activity if banks have created prior rights over them through lending. The tribunal has ruled in favour of Standard Chartered Bank in a dispute involving the ED on the Winsome Diamonds & Jewellery case saying that it would be against the spirit of the Money Laundering Act if assets pledged are not available for banks to recover their dues. “The mortgaged properties of the appellant bank cannot be attached or confiscated unless link and nexus directly or indirectly established,” Justice Manmohan Singh, chairman of the tribunal wrote in his order passed on August...
Perform and get paid: Public sector banks plan to link pay with performance

Perform and get paid: Public sector banks plan to link pay with performance

Finance
Senior management of public-sector banks (PSBs) may now have to perform to earn more. In a first-of-its-kind move for PSBs, State Bank of India (SBI), Punjab National Bank (PNB) and Bank of Baroda (BoB) are planning to introduce performance-linked salary structure for the senior management, according to a Business Standard report. "The bank is seriously thinking of introducing a system of performance-based incentives for officers above the general manager grade. There will be a component of fixed and variable pay. But it will evolve slowly,” PNB Managing Director and Chief Executive Officer Sunil Mehta told the paper. SBI and BoB may also follow a similar model and are working on a compensation framework, says the report. Performance-linked pay is widely used in the private sector t...
25% ATMs of public sector banks may be vulnerable to fraud

25% ATMs of public sector banks may be vulnerable to fraud

Finance
The government on Friday indicated that nearly a quarter of the automated teller machines (ATMs) run by public sector banks may be vulnerable to frauds as 74% of the cash dispensers are running on outdated software. The statement on state-run banks came in response to a question in Parliament on ATMs running on software that was outdated or “unsupported”. These ATMs are prone to fraud and lack basic security features. The government, however, did not disclose details of such ATMs that were run by private sector lenders. A bulk of the machines in the country are operated by public sector players, with government telling Parliament that close to 89% of the ATMs belonged to this category. Despite the growing presence of private players in recent years, state run-banks still contro...