Banks are a source of Credit. But to whom does the credit go to?. Often, it goes to whomever the banks find creditworthy. In a country like India, the creditworthiness balance has been and disappointingly will be offset for some time unless we do something about it. A group of society who does need credit badly just to get by and have an actual contribution towards national growth is denied the 'ease of getting credit'. While the coffers of the banks are always open to sharks of the business world. How are they getting the banks money and how are some of them getting away without ever repaying the banks?. It is all a question of credibility.
Let us take the case of Indian farmers, which has been raised periodically in the media after the recent LoC and LoU frauds. Money becomes viscous when it flows towards the needy. But it becomes fluid when the recipients are well off businessmen whose investments and businesses supplement the stock market of the country.
So what do we do?. An obvious opinion would be to increase the credibility of the farmers or any needy group of people. Is it difficult?, of course it is. But everything is difficult. We have to find a way to steer the system in a different and productive path. What the government may do in this case is to provide more assistance and assure financial security to them. It is sad that this is the case.
Banks need to learn from their mistakes and there have been too many to be complacent about it. There should be an effective implementation of the existing checks and balances regarding credit issue. Introducing more of them will only increase the paperwork and might add to inefficiency.
The existing options need to be strengthened much more.
It is astonishing that none of the audits or any of the staff were able to decode the genetics of the ongoing fraudulent transactions in the whole of 7 years that is has been alive and kicking. The thing that we should focus on is to not allow such scams to occur which loot money which could have been used for some greater national purpose.
Let us take the case of Indian farmers, which has been raised periodically in the media after the recent LoC and LoU frauds. Money becomes viscous when it flows towards the needy. But it becomes fluid when the recipients are well off businessmen whose investments and businesses supplement the stock market of the country.
So what do we do?. An obvious opinion would be to increase the credibility of the farmers or any needy group of people. Is it difficult?, of course it is. But everything is difficult. We have to find a way to steer the system in a different and productive path. What the government may do in this case is to provide more assistance and assure financial security to them. It is sad that this is the case.
Banks need to learn from their mistakes and there have been too many to be complacent about it. There should be an effective implementation of the existing checks and balances regarding credit issue. Introducing more of them will only increase the paperwork and might add to inefficiency.
The existing options need to be strengthened much more.
It is astonishing that none of the audits or any of the staff were able to decode the genetics of the ongoing fraudulent transactions in the whole of 7 years that is has been alive and kicking. The thing that we should focus on is to not allow such scams to occur which loot money which could have been used for some greater national purpose.
