Banks rush to tweak internal controls, review HR policies
Banks are scurrying to install systems to prevent frauds like the one that shook Punjab National Bank, after the central bank directed them to link their core banking systems (CBS) with inter-bank messaging platform SWIFT. The scam at PNB went unnoticed for years, allegedly because unauthorized transactions were made on SWIFT, which was not linked to the bank’s CBS. SWIFT is short for Society for Worldwide Interbank Financial Telecommunication, a worldwide messaging platform for banks. Additional steps being taken by banks include instituting better security infrastructure, more frequent audits of internal controls, and review of human resources (HR) policies, including leaves and job rotations. Banks are also planning to put in place one-time password (OTP)-based system to log in to SWIFT, bankers said.
India calls for changes in WTO to transform world economy
India today called for bringing changes in Geneva-based World Trade Organization (WTO) to transform the global economy. Commerce and Industry Minister Suresh ‘Prabhu said that the global trade has benefitted all the nations in terms of creation of jobs and promoting economic activities.”Now the question is whether we should make WTO better or forget it. Organizations’ need reformation all the time and it needs to be changed with change in times,” he said here at the CII’s Partnership Summit.
New Public Provident Fund rules: How they will impact you
For most risk-averse investors, small savings schemes are popular across the country. Though their interest rates have been falling since April 2016, popular schemes like Public Provident Fund (PPF) still remain the most sought after investment option to create a tax-free nest egg. In order to remove ambiguities due to multiple Acts and rules for small savings schemes, the Centre has proposed to merge the Government Savings Certificates Act, 1959 (which covers National Savings Certificates and Kisan Vikas Patra) and the Public Provident Fund (PPF) Act, 1968, with the Government Savings Banks (GSB) Act, 1873. “All existing protections have been retained while consolidating PPF Act under the proposed Government Savings Promotion Act.
Rising litigation mars debt resolution under Insolvency and Bankruptcy Code
With bidders and owners of companies that defaulted on debt repayments complaining of arbitrary use and interpretations of the Insolvency and Bankruptcy Code (IBC) by insolvency resolution professionals (IRPs) and lenders, more cases relating to non-performing assets (NPAs) resolution are likely to head to court. While the resolution process of Binani Cement, Videocon Industries, and Jaypee is in court, the next round of litigation is expected in the bidding process of Bhushan Power & Steel and Essar Steel. “Most of these cases will be appealed in the Supreme Court as the interpretation of the code is different in most cases. While in the Binani Cement case, the IRP called for bids for the second round despite JSW Cement being the winner in the first round, in other cases latecomers were not allowed to bid,” said a Mumbai-based corporate lawyer.
CBI files Rs 970-mn loan default case against Simbhaoli Sugars, officials
The Central Bureau of Investigation (CBI) on Sunday registered a case on a complaint from Oriental Bank of Commerce (OBC) against a private sugar company based at Simbhaoli in Hapur district of Uttar Pradesh for defaulting loan. The case is registered against the chief managing director (CMD) of the company and others including directors, chief executive Officer (CEO), chief financial Officer (CFO) and unknown bank officials and other private persons, u/s 120-B r/w sec. 420 & 409 of the Indian Penal Code (IPC) and Sec. 13(2) r/w 13(1)(d) of the Prevention of Corruption Act, 1988 for causing a loss of Rs.109.08 crore (approximately) to the bank.
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