Banks that care…….

There are ‘dada’ type of tenants including shopkeepers who default in paying the monthly rent to the owner of house or shop. Sometimes their arrears run into months fighting with the owner in the court, but can you imagine Government office or public sector organization defaulting in rent payment?

Recently Bangalore civic authority (BBMP) has sealed branches of three Banks and a post office inside a shopping complex for recovery of rent since 2007!Unbelievable? Well these bank branches are of Vijaya Bank (arrears Rs.3.24 crores), S.B.I. (Arrears 63.56 Lacs), Apex Bank (arrears Rs.33 Lacs) and Post Office (arrears Rs.33.54 Lacs). Here is a unique case where banks are chasing the loan defaulters for recovery of their loans and the civic authority chasing the banks to recover arrear rents in default. This is what is called “The fence eating the crops”.

In another development, The Reserve Bank of India is chasing those banks which are violating the KYC (KNOW YOUR CUSTOMER) norms and anti-money laundering norms by slapping hefty fines on the banks! While talking about the banks, who care…. (!), here is another revelation. Don’t think that everything can be foolproof in fully automated/fully computerized bank.Another case where the banks are playing the games played by Dons & bookies!

Other day a depositor got a computer generated ‘Interest paid Certificate’ from the bank for 3 of his fixed deposits even though he held 6 deposit receipts. He had transferred other 3 FDs to other branch of the same bank during the month of November. Interest paid on those three FDRs till the date of transfer (i.e. November) neither appeared in the interest certificate issued by transferor branch nor the transferee branch. 

Isn't this a nice idea to save income tax on interest earned on FDRs by transferring them to other branch midway?