Open Letter to Arvind Pangariya & Poonam Gupta
Dear Sir,
I read your suggestions regarding how to tackle fraud cases in banking sector. It was shocking to see scholar like you demeaning pillars of democracy. Your suggestion to privatise bank since you want to free banking sector from four C's (Courts, CBI, CVC and CAG) is appaling to say the least! Since you are way more qualified than ordinary bankers like us, I am sure you would have had the data that between 31 March 2010 till 31 March 2013 % of no of frauds by private sector bank is whopping 55.16% vis-a-vis public sector bank which is 17.53%. (Chakrabarty, K.C (2013), “Frauds in the banking sector: Causes, Cures and Concerns”) Same is discussed in WORKING PAPER NO: 505 of IIM Bangalore "Frauds in the Indian Banking Industry" published in 2016 March. I wish you could open your eyes to the fact that maximum frauds in public sector banks pertains to Rs 1 Crore and above where involvement is of higher officials. "In fraud cases, within the banks, with suspected involvement of senior management, there is significant resistance while prosecuting officers in level 8 or above. Most of the officers retire before they can be booked for a fraud. Once retired, pension regulations apply to them making them immune to any financial penalty." says the same report.
Your four C's (Courts, CBI, CVC and CAG) are formed to protect the public interest. And if economic advisor to the Governement himself thinks them as a hindrance, one can foresee the clear path of democracy in India.
It painful to see while Mr. Prime Minister doesn't forget to mention Pradhan Mantri Jan Dhan Yojna in his speeches, scholars like you forget to consider that Public Sector Banks have added 25.09 crore beneficiaries while private banks added only 99 lakhs. We are overburdened and yet performing.
Your article has casted aspersions on over 8 lakhs of your workforce who are honest and working for the Governement even if it is AADHAR enrollment at bank branches. I just wish that those who believe privatization is a cure of the disease created by higher officials should read the fine print of subprime crisis of USA.
I hope one day you will be able to understand complex structure like India needs public and private both kind of banks and you would start respecting them both.
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