Banks have been debiting customers even for failed transactions. RBI guidance clearly states that this is to be reimbursed to the customer with in seven days.
There are other ingenious ways Banks skim you.
To remit money into your account to your account in another city(from the same bank),HDFC charges and the charges levied are just arrived at the spur of the moment.
HSBC, when the loan accountis closed, in the time stipulated, charges you additional amount before issuing release letter. Banks debit Rs 200-300 every month to your account under Miscellaneous charges or Service charges. If you protest to them vigorously they waive it. It pays to check your account patiently.
How is it that an organisation with systems has not been able to notice a false product being distributed ,deposits received, receipts issued and accounted for?
Do people not check transaction details against receipts issued?
Or these people have a sophisticated Software which does not need to check the receipts issued against inflow?
Even if a receipt book was maintained by the accused,is it possible to keep the same safely over a long period of time?
Again did not the depositors visit the bank even once?
How is it they have not blurted out the ‘Scheme’ to the bank staff or their friends about their wonderful investment?
One thing is sure-we need not bother about fine prints(conditions apply);
The normal document may not also be original.
Another point is , because of IVRS ( automatic recording)system, one hardly finds a human being to answer you.( by the way how is it that none of the investors made an even a casual inquiry at the bank?)
This makes all the more easy for fraudsters who know Software to manipulate records.
NEW DELHI: Finance minister Pranab Mukherjee has ruled out any systemic failure in the muti-crore fraud at Citibank and said that precautions are being taken to ensure that such cases are not repeated.
“There are regulations and all other precautions are being taken. But if there is an individual misdemeanor, that has to be acted on. Law will take its own course of action,” Mukherjee told reporters.
The alleged fraud was detected at Citibank’s Gurgaon branch. An FIR for cheating and forgery against a bank employee and three others was lodged on Tuesday and 18 accounts, with about Rs4 crore deposits, were frozen subsequently.
The fraud is said to be a handiwork of Shiv Raj Puri, a relationship manager at the branch, who allegedly sold investment products to high networth clients claiming that they would generate unusually high returns. He also allegedly routed the fund garnered from HNI customers to stock market through brokerage firms like Religare Securities.
Citibank India spokesperson said, “We recently initiated an investigation into a certain set of suspicious transactions based on documents forged by an employee involving a few accounts in our Gurgaon branch,” the spokesperson said. “Identified suspicious transactions have been isolated and we are providing full assistance to the authorities in their investigations.”
New Delhi: A huge banking fraud has been uncovered at the Gurgaon branch of Citibank that saw a bank employee fraudulently diverting an estimated Rs.400 crore from 20 accounts of high-networth clients. Citibank has already lodged an FIR with the police and begun internal investigation into the fraud.
“We recently initiated an investigation into a certain set of suspicious transactions based on documents forged by an employee involving a few accounts in our Gurgaon branch,” a Citi India spokesperson said in a statement on Tuesday. According to sources, an employee, Shivaraj Puri, used to seek deposits from high-networth customers in lucrative schemes. However, he used to transfer the funds to some other accounts.
Funds amounting to Rs.400 crore belonging to about 20 customers, according to sources, were transferred to fictitious accounts.
The employee involved is suspected of selling investment products to clients claiming that these would generate unusually high returns.
It has been alleged that the employee also showed a forged notification of market regulator SEBI for garnering funds from customers.
The flagship branch that Citibank opened in New York’s Union Square today is a bit different from banks in its other locations.
Instead of picking up a paper brochure, patrons can use one of the six interactive sales walls with touchscreen capabilities to learn more about bank services. Instead of using deposit envelopes, they can use enhanced-image ATMs to deposit checks without them. And instead of waiting for business hours to speak with a customer service representative, customers can use a 24/7 video chat station in the ATM lobby.
The digital components of the 9,700-square-foot branch are based on technologies pioneered by Citibanks in Hong Kong and Singapore.
Some features of the new bank seem more suited for a cafe or a airport lounge than a bank. Customers can access free Wi-Fi (in a private seating lounge if they are Citigold customers), and “media walls” display news, weather, and information about Citibank. Atmosphere Proximity, Citi’s digital agency, also designed a chip with the bank’s social media team that accesses a special Foursquare feed. Whenever a certain amount of people check in to the branch, an “internal marketing screen” shows which users are inside the branch at that very moment.
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