Wilful Defaulters { and Wilful Lenders ? }

Wilful  Defaulters { and  Wilful  Lenders ? }

There are groups of Indian Companies who have borrowed from dozens of banks, thousands of crores of rupees

Total NPA ( Public Sector Banks plus Private Sector Banks ), exceed Rs 7 lakh*crores

{  A loan gets an NPA tag if an installment remains unpaid for 90 days  }

But not all loans to Indian borrowers have turned NPA , nor all borrowers declared " Wilful Defaulters " by RBI

Who is a " Wilful Defaulter " ?

*  A borrower who defaults in loan payment despite having capacity to pay

*  Funds have not been utilized for the purpose for which they were raised and have been diverted

*  While defaulting, the borrower has also disposed off fixed assets , immovable property given as security , without the bank's knowledge

  

Just two days back, SEBI also decided :

*  To bar companies which have been declared wilful defaulter ( along with their promoters and directors ) from accessing stock or bond markets for raising funds

*  To prohibit such defaulters from taking board position in any listed company

*  Wilful defaulters will also be barred from taking over another listed company

No doubt , in the days to come , many more stringent conditions will get added to bring down NPA / Wilful Defaulters

That may lead to lenders ( bankers ) getting " Over Cautious " and simply refuse to take legitimate business risks !

So , is it not  the time for the Banking System to self-regulate through

*   Refining  " Lending Criteria " ,  and

*   Defining " Wilful ( too accommodating ? ) Lenders "

Let there be no doubt that when those hundreds of " Wilful Defaulter " cases get thoroughly probed , many a " Skeletons in the Cupboard " , will come tumbling out !

Sadly , a witch-hunt seems inescapable  !

In the process , let us not forget that " Honest Decisions " must not be made to suffer !

If that happens , in future , no bank officer will want to stick out his neck for fear of it getting chopped off !

Before drawing up a definition of " Wilful  Lenders " , I strongly suggest that RBI debate the following questions :

*    Is there here , some confusion between a " Wrong " decision   and a " Dishonest " decision ?

 Don't millions of honest people continue to take decisions , which in hindsight , appear wrong ?

*    Isn't a " Dishonest " decision one which got taken , solely for the benefit of the decision-taker ( or his family / friends etc )  ?

*    Are we trying to replace honest human " Judgment " by some rigid , hide-bound rules ? by some computer algorithms ?

Economic progress depends upon banks lending money to industries / businesses

It is no different anywhere else in the World

But both, Shri Raghuram Rajan and Shri Arun Jaitley are worried about the pendulum swinging to the other extreme !  And rightly so !

A built-in mechanism for " Pre-Auditing " all loans , could help in balancing the interests of the borrowers and the lenders

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www.hemenparekh.in / blogs

14  March  2016

Warm Regards,

Hemen Parekh

(M)=91 – 98,67,55,08,08

From: Hemen Parekh [mailto:hcp@recruitguru.com]
Sent: Wednesday, March 09, 2016 11:41 AM
To: Hemen Parekh; 'shaktikanta.das@nic.in'; 'narendramodi1234@gmail.com'
Cc: 'Hasmukh Adhia'; 'ajaitley@del5.vsnl.net.in'; 'jayant.sinha19@sansad.nic.in'; 'piyush.goyal@gov.in'; 'nitin.gadkari@nic.in'; 'spprabhu1@rediffmail.com'; 'kalraj@kalrajmishra.com'; 'bandaru@sansad.nic.in'; 'amitabh.kant@nic.in'; 'smritizirani@nic.in'; 'nsitharaman@nic.in'; 'nandan@nandannilekani.in'; 'viral@juliacomputing.com'; Editors; L T Story; Loksabha1; Loksabha2; Rajyasabha; TV Anchors; 'ceo-niti@gov.in'; 'secy-ipp@nic.in'; 'mcitoffice@gov.in'; 'ravis@sansad.nic.in'
Subject: SIMPLE TECHNOLOGY CAN SOLVE NPA ?

NPA ?  or  is  it   NPB  ?

NPA = Non Performing Assets ( bank loans not being repaid )

NPB = Non Performing Bankers  ( bank officers not being prosecuted )

Recently , Supreme Court asked RBI for a list of entities , who are defaulting on loans of Rs 500 Crores or more

Suddenly , a few banks started publishing  lists of their own loan defaulters

What is the big deal ?

Several thousand Cooperative Housing Societies in Mumbai , have been , routinely publishing on their Notice Boards ( equivalent to the web sites of the banks ? ), names of society-members who have failed to pay their monthly society charges ( includes Municipal Property Tax ) - including cumulative arrears

They have been doing so for years . I don't know if Model Standing Orders or Cooperative Society Act requires this

But no member seems to object this act of " Name to Shame " !

What has prevented banks from routinely declaring on their web sites :

*  Complete list of all loan-takers ( Companies / Individuals / Trusts / NGOs etc  )

*  Full details of loans ( amount / duration / interest rate / collaterals / repayment schedule / sureties etc  )

*  Names of bank officers who scrutinized and sanctioned loans

*  Cumulative arrears ( shown graphically )

*  Other entities ( including other Companies / Individuals ) inter-connected with the defaulters

*  Details of Notices sent / Court cases filed / Recoveries made / Blacklisting done , etc

After all , most banks have PUBLIC as shareholders and therefore , need to be covered under RTI Act

If a bank is owned ( partially or totally ) by any government ( Central or State ) , it is covered under RTI

So , why this secrecy ? Why this dragging of feet to take prompt action against defaulters ?

I recently heard of a Cooperative Housing Society in Hyderabad which has solved the problem of members defaulting on payment of society charges

In members' flats , Society has installed ELECTRONIC DIGITAL PRE-PAYMENT METERS

On 1st of each month, a member must key-in the amount ( of Society charges ) in the Meter and authorize deduction from his bank account ( like Mobile Wallet , in collaboration with many banks concerned )

Failure to do so will immediately result in automatic cutting off the electricity and water supply to that flat !

I suppose Andhra / Telengana State Cooperative Society Act permits this. Why progressive Maharashtra does not ?

It is no Rocket Science to extend the application of this  SIMPLE TECHNOLOGY  to bank loan defaulters !

By automatic freezing of personal bank accounts of ALL those who signed the loan document ( takers & givers ) , the moment any repayment installment becomes overdue by ONE DAY ?

I hope RBI governor , Shri Raghuram Rajan , gets to read my blog and floats a Request for Proposal to Infosys / Wipro / TCS etc

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www.hemenparekh.in / blogs

09  March  2016

Warm Regards,

Hemen Parekh

(M)=91 – 98,67,55,08,08

From: Hemen Parekh [mailto:hcp@recruitguru.com]
Sent: Tuesday, March 08, 2016 1:41 PM
To: Hemen Parekh; 'shaktikanta.das@nic.in'; 'narendramodi1234@gmail.com'
Cc: 'Hasmukh Adhia'; 'ajaitley@del5.vsnl.net.in'; 'jayant.sinha19@sansad.nic.in'; 'piyush.goyal@gov.in'; 'nitin.gadkari@nic.in'; 'spprabhu1@rediffmail.com'; 'kalraj@kalrajmishra.com'; 'bandaru@sansad.nic.in'; 'amitabh.kant@nic.in'; 'smritizirani@nic.in'; 'nsitharaman@nic.in'; 'nandan@nandannilekani.in'; 'viral@juliacomputing.com'; Editors; L T Story; Loksabha1; Loksabha2; Rajyasabha; TV Anchors; 'ceo-niti@gov.in'; 'secy-ipp@nic.in'; 'mcitoffice@gov.in'; 'ravis@sansad.nic.in'
Subject: A Half-hearted Measure ?

A  Half-hearted Measure  ?

Following report appeared in today's news papers :

[ The Reserve Bank of India will share FDI-related information with country's intelligence agencies -- IB and RAW -- to check black money from entering the country.


During the meeting of "Working Group on Intelligence Apparatus", representatives of Intelligence Bureau felt that it is important to have the information. It was decided that RBI should share with IB and Cabinet Secretariat, information on FDI which actually enters the country, the sources said. 

"Hence, it was felt that they should form a database on it and share details with both IB and RAW," said a senior official in the Cabinet Secretariat, requesting anonymity.

The RBI has also been asked to consider displaying this information on its website, he said ]

This is just not good enough to curb the menace of BLACK MONEY / CORRUPTION / MONEY LAUNDERING

I , once again request Shri Arun Jaitleyji to implement my following two year old suggestion ( 04 April 2014  ) :

E - Governance ?

Can e-Governance help eliminate corruption  ?

Most certainly

Look at the following , partial list of Central and State Agencies set up to fight fraud , money-laundering , corruption , tax-evasion , economic crimes etc :

*  Public Accounts Committee           (  PAC  )

*  Central Vigilance Commission        (  CVC  )

*  Central Information Commission     (  CIC  )

*  Research and Analysis Wing           (  RAW  )

*  Serious Fraud Investigation Office   (  SFIO  )

*  Information Bureau                        (  IB   )

*  Economic Offence Wing                   (  EOW  )

*  Central Bureau of Investigation        (  CBI  )

*  Department of Revenue Intelligence (  DIR  )

*  Comptroller and Auditor General       (  CAG  )

*  Anti Corruption Bureaus ( States ).... (  ACB  )

*  Enforcement Directorate                    (  ED   )

*  Lok  Ayukts    (  States   )

*  Lok Pal           ( Central  )

Despite such an army of Agencies , how do corrupt manage to get away  ?

Or , in case caught , manage to delay delivery of punishment for years  ?

No doubt , there must be several reasons , including , inter - agency rivalry to get credit - something difficult to eliminate altogether

But , I believe , the most important reason is :

Lack of a COMMON  / COMPUTERIZED database of all offences / cases / persons being investigated

And , which is readily " Accessible " to all of these Agencies , all over the country ( 24 * 365 )

Already , every Agency compiles huge dossiers on " Suspects " in its own " Departmental Database " , which is never shared with other Agencies , leading to ,

*   Huge amount of duplication of efforts / information

*   Fractured / scattered profiles of " Suspects "

*   Enormous waste of time / resources

What will help  ?

*    Dismantling of individual departmental databases

*    Merging of all Agency-wise databases into a SINGLE / UNIQUE database

*    All Agencies to enter their findings / data / info into this COMMON

      database , with nothing preserved on local computers

*    All data-entry FORMS to be ONLINE . No paper forms at all

*    All local computers connected to ultra-secure Network ( Encrypted )

*    " Access Rights " to individuals , based on Biometric Identification

Will BJP want to make this , a prominent promise in their Poll-Manifesto , likely to be released on 7th April  ?

 ( Congress /  AAP missed this boat  ! )

It is high time political parties stop talking of motherhood in vague terms and start telling the voters ,

" If you vote us to power , this is precisely what we will do , to bring about E-GOVERNANCE  - and do it within 6 months of assuming power "

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www.hemenparekh.in / blogs

08  March  2016

 

Warm Regards,

Hemen Parekh

(M)=91 – 98,67,55,08,08

From: Hemen Parekh [mailto:hcp@recruitguru.com]
Sent: Monday, March 07, 2016 12:20 PM
To: Hemen Parekh; 'shaktikanta.das@nic.in'; 'narendramodi1234@gmail.com'
Cc: 'Hasmukh Adhia'; 'ajaitley@del5.vsnl.net.in'; 'jayant.sinha19@sansad.nic.in'; 'piyush.goyal@gov.in'; 'nitin.gadkari@nic.in'; 'spprabhu1@rediffmail.com'; 'kalraj@kalrajmishra.com'; 'bandaru@sansad.nic.in'; 'amitabh.kant@nic.in'; 'smritizirani@nic.in'; 'nsitharaman@nic.in'; 'nandan@nandannilekani.in'; 'viral@juliacomputing.com'; Editors; L T Story; Loksabha1; Loksabha2; Rajyasabha; TV Anchors; 'ceo-niti@gov.in'; 'secy-ipp@nic.in'; 'mcitoffice@gov.in'; 'ravis@sansad.nic.in'
Subject: THERE IS A SIMPLER WAY

There  is  a  Simpler  Way  !

A study by Harvard researchers ( led by former Standard Chartered Bank Chief , Peter Sands ), recommends doing away with the most popular banknotes used to evade the banking system : the US$ 100 note / the 500 Euro note / the 1000 Swiss franc note and Britain's 50 pound notes

If those large bills were eliminated, argues the Harvard University study, the drug dealers , arms traders , terrorists and tax cheats would find it a whole lot more onerous and risky to move their cash around undetected , carrying huge sacks of small denomination notes

Apparently Harvard researchers did not know that , tax cheats of India have,

*  Siphoned away Rs 34.4 lakh*crores to foreign banks in past 10 years

*  Stashed away (my guess) TEN TIMES as much (Rs 500/1000 notes) in local bank lockers

Had they known , they would have whole heartedly agreed that my following suggestion is a far  SIMPLER / FASTER / SURER method to eliminate BLACK MONEY , forever :

*  Discontinue paper-based currency notes of Rs 500 and Rs 1,000

*  Introduce plastic currency notes of Rs 500 / 1,000 which are embedded with RFID sensors ( far thinner than a human hair  ! ) , always broadcasting their presence to Internet of Things ( IoT )

*  Assign to each such note, a IP V 6.0 address , linked to its unique note number

*  Set up a IT-enabled Technology Platform which will constantly monitor any accumulation of Rs 500 / 1000 RFID embedded notes in excess of Rs ONE CRORE within an area of ONE square meter

   

Only 2 days back , Mumbai police caught a van carrying Rs 500 / 1000 currency notes worth Rs 2.84 Crores , hidden in a secret compartment below the floor board

If my suggestion is implemented , who would want to be followed / tracked on Google Map ,

( on the law-enforcer's mobile App ), with a balloon inscribed with the value of those notes ?

I wish Shri Ravi Shankar Prasad would tell Shri Narendra Modi :

" Modiji , this is the ONLY foolproof way to solve the problem of BLACK MONEY , without worrying about introducing a MONEY BILL in Lok Sabha

And our bright young Start Ups are capable of implementing this within 6 months 

Please , give me a GREEN SIGNAL  !  "

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www.hemenparekh.in / blogs

07  March  2016

Warm Regards,

Hemen Parekh

(M)=91 – 98,67,55,08,08

From: Hemen Parekh [mailto:hcp@recruitguru.com]
Sent: Friday, March 04, 2016 1:59 PM
To: Hemen Parekh; 'shaktikanta.das@nic.in'; 'narendramodi1234@gmail.com'
Cc: 'Hasmukh Adhia'; 'ajaitley@del5.vsnl.net.in'; 'jayant.sinha19@sansad.nic.in'; 'piyush.goyal@gov.in'; 'nitin.gadkari@nic.in'; 'spprabhu1@rediffmail.com'; 'kalraj@kalrajmishra.com'; 'bandaru@sansad.nic.in'; 'amitabh.kant@nic.in'; 'smritizirani@nic.in'; 'nsitharaman@nic.in'; 'nandan@nandannilekani.in'; 'viral@juliacomputing.com'; Editors; L T Story; Loksabha1; Loksabha2; Rajyasabha; TV Anchors; 'ceo-niti@gov.in'
Subject: RE: Whom to Train ? How to Train ?

Citizens'  Grievances  ?

Following is a news report from DNA ( 03 March 2016 ) :

"  Citizens' grievances against the central government ministries have increased over three fold in 2015 as compared to the previous year

A total of over 8.81 lakh complaints have been received by the government , which attributed the surge to a number of citizen friendly measures

These grievances were received online through Centralized Public Grievance Redress and Monitoring System , against central government ministries

This was a written reply in Lok Sabha given by Shri Jitendra Singh , Minister of State for Personnel , Public Grievances and Pensions  "

I wonder if that reply provided following " Analysis " :

*  No of Complaints : Ministry wise / Public Service wise / Period wise / Pendency wise

*  Ave time / Max time / Min time , taken to redress the complaints

Leaving that aside , Shri Singh may want to consider the following :

*  In a population of 1.25 BILLION , not more than 200 million can access the govt web site through a computer ( no internet connection )

*  Even those who may find the concerned web site after a lot of online search as I did ( pgportal.gov.in ) , they will get stumped / overwhelmed by the GRIEVANCE SUBMIT FORM !

*  As against this , we have already 200 million persons having smart phones and that number will reach 651 million in 3 years ( all internet-connected )

In light of this , I request Shri Singh to consider implementing my suggested mobile app , described below in my blog [  29 Dec 2012 ]  :

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I SIN><U SIN

That could be the name of an android app

( I Seek It Now > < U Solve It Now )

To be developed by India’s Central Home Ministry for successful implementation of proposed,

“ Delivery  of  Services  Act “

The app will come pre-installed on those mobile phones which Government of India plans to distribute FREE , to some 400 million “ Poor People “ of India , before the 2014 National Election (and on those 220 million Aakash Tablets )

Issuer will enter the Mobile No and that person’s Aadhar Card No, in a computerized central database , before issuing the phone

Hence , no need to login to the App , whose screen will read :

 I wish to send my complaint to the following department :

National Commission for Women

Garbage Clearance

Water Supply

Electricity Supply

Roads Repair

Rationing ( Food Distribution )

Police

Bus Transport

Railways

Post

Employment

Education

Irrigation

Building Permits

Revenue / Land Records

Anti Corruption

Other ……………………………………….etc

(List should not exceed 50)

Touching name of any department name will open a SMS message box where the user will type out his complaint ( in a language of his choice )

There will be option to speak-out and record voice message , for illiterate users

Touching SEND button will transmit the complaint and within minutes, user will receive SMS reply , giving,

Name of Officer responsible

Office Landline No

Mobile No

Email Id

Complaint No

Expected date of solving

Bingo !

Then publish online , a tabulation of departments , arranged in the descending order of the no of complaints received / cleared / pending

(  A great tool for Performance Appraisal of officers ! )

This frugal innovation will bring in Good Governance all over India

Request Nandan Nilekani / Sam Pitroda to help out , even though they may be busy implementing my earlier suggested app , 

“ VotesApp “

I have no doubt that the political party which promises , “ I SIN >< U SIN “ ,  will get voted to power in 2014 (change now this to 2019 )


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www.hemenparekh.in / blogs

04  March  2016

Warm Regards,

Hemen Parekh

(M)=91 – 98,67,55,08,08

From: Hemen Parekh [mailto:hcp@recruitguru.com]
Sent: Thursday, March 03, 2016 11:21 AM
To: Hemen Parekh; 'shaktikanta.das@nic.in'; 'narendramodi1234@gmail.com'
Cc: 'Hasmukh Adhia'; 'ajaitley@del5.vsnl.net.in'; 'jayant.sinha19@sansad.nic.in'; 'piyush.goyal@gov.in'; 'nitin.gadkari@nic.in'; 'spprabhu1@rediffmail.com'; 'kalraj@kalrajmishra.com'; 'bandaru@sansad.nic.in'; 'amitabh.kant@nic.in'; 'smritizirani@nic.in'; 'nsitharaman@nic.in'; 'nandan@nandannilekani.in'; 'viral@juliacomputing.com'; Editors; L T Story; Loksabha1; Loksabha2; Rajyasabha; TV Anchors
Subject: Whom to Train ? How to Train ?

Whom  to   Train  ?   How  to   Train  ?

A report in Economic Times ( 24 Feb ) talks of the exercise undertaken by NITI Aayog to ,

*  Map the skill requirements of 22 industry sectors ( " Make in India" listing )

The exercise is expected to be completed in 6 months , after which , NITI Aayog will prepare a sector wise road

 map with targets to be achieved across sectors in the given time

The road map will lay down a process for training ( skilling / re-skilling ) some 402 million youth by 2022

The report adds that the Skills Ministry ( headed by Shri Rajiv Pratap Rudy ) has outlined :

*  1500 job roles ( like trade classifications / vocational designations ? )

*  6,700 qualifications ( job descriptions  ?  )

I suppose much of those trainings will be imparted in following Industrial Training Institutes ( ITIs )  :

*  13,105   ( existing as on 2014 )

*    1,150   ( set up by Skills Ministry in 2015 )

*    7,000   ( targeted to be set up in 2016  )

MY  SUGGESTION  :

In India , we have :

*   4300   Degree level Engineering Colleges

*     700   Diploma level Engineering Colleges

All of these colleges have WORKSHOPS equipped with different types of machines needed for " Skills Training "

These ASSETS are used / occupied only for a maximum of 8 hours ( daytime ) and remain idle for 16 hours

Through a partnership with these colleges , NITI Aayog should consider using these UNDER-UTILIZED assets for

 imparting skills to those who need

Such an arrangement will :

*  Enable NITI Aayog to accelerate this program , without a long mobilization time

*  Save thousands of crores of rupees in constructing new buildings / buying new machines

*  Boost " Make in India " initiative by making available skilled manpower at short notice

*  Increase ASSET UTILIZATION of scarce resources

*  Foster INDUSTRY - EDUCATION INSTITUTES cooperation through closer interaction

*  Enable College Faculty involved to earn extra income through charging PLACEMENT FEES to industry

What  about  Schools  ?

*  We have 1.3 million schools in India . But these schools do NOT have workshops / machinery

*  Between them , these Schools have millions of class rooms which too remain unutilized for 16 hours per day

 MY   SUGGESTION  :

*   Ask Sundar Pichai ( Google ) to convert all of these Schools into Wi-Fi Hot Spots ( of course , free of cost ! )

*   And Tim Cook ( Apple ) to provide iPAD-Pro tablets ( no doubt , free ! )

*   And Satya Nadela ( Microsoft ) to provide software support ( ex-gratis  ! )

Then use these 1.3 million schools to provide basic COMPUTER SKILLS to future DATA ENTRY OPERATORS

Where there is a WILL , there is a WAY ( even a Super Highway , if there is a Political Will )

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www.hemenparekh.in / Blogs

03  March  2016

Warm Regards,

Hemen Parekh

(M)=91 – 98,67,55,08,08