Can we still trust our banks?

Wikipedia has rather unsurprisingly a very long page under the title List of Scandals in India These range from the misappropriation of scholarship funds to scandals involving liquor licenses disproportionate assets to dubious land deals What is surprising is how many times bank frauds crop up There is the Rotomac bank fraud of February 2018 for instance or the fairly recent Punjab National Bank Scam involving an infamous diamond merchant along with a number of lesserknown banks that involve staggering amounts of money for a country still struggling to keep millions above the poverty lineIn 2018 a media report publicised the fact that over the last 11 fiscal years there had been 53334 fraud cases reported by banks involving R205 lakh crore According to the RBI bank fraud touched an unprecedented R71500 crore in 201819There are two ways of looking at this statistic starting with the fact that a lot of banks are losing money on account of being targeted by criminals What isnt talked about is the presence of people like us who must eventually bear the brunt of these crimes directly or indirectly watching our savings erode in the absence of better securityWhen a billiondollar scandal involving the Punjab amp Maharashtra Cooperative PMC Bank was announced weeks ago it wasnt employees or trustees of the bank who panicked It was depositors like us who suddenly woke up to a crisis not of their making when the bank restricted them from withdrawing more than 1000 rupees for six months without offering any explanation By the time that was rectified life savings had vanished a man had a heart attack and there were people protesting outside RBI headquarters begging for explanationsAnd then there are the cooperative banks Im not sure anyone knows how they come into being how they operate what they do with the money given to them by depositors or why so many experts think of them as private accounts created for politicians alone Much has been written about how these banks hoodwink auditors stay under the RBI radar issue letters of credit that would never stand to scrutiny elsewhere and are staffed by shady boards of directors And yet despite the years we have had to recognise that there is a desperate need to reform these institutions we are compelled to sit back and watch as they crumble like packs of cards every other year No one wonders whyThere are all kinds of reasons why customers of these cooperative banks struggle to get back the money they have lost The banks may not matter in the larger scheme of things their size preventing government entities from being too interested in examining their reasons for failure This ability to fly undercover means nothing to those who invest in them though because the smaller the bank higher the chances of it ruining the life of someone who has everything to lose Those who are rich hedge their bets or focus on large banks It is those who have little to spare who turn to these banks in the absence of alternatives For proof simply look at the back of a rickshaw or taxi to find out which banks those vehicles have been hypothecated toOnce upon a time we looked upon banks as safe houses where our parents would put their salaries and look forward to withdrawing their funds after retirement They were untouchable solid and respected institutions To work at one was something to be proud of and something that made it easier for people to marry because everyone wanted a husband or wife who worked at oneI wonder if that stellar reputation still stands given all we have been put through I dont think of banks or bankers with respect anymore because I no longer have faith in their ability to take care of my money Too many scams scandals and slipups on their watch have made me doubt the abilities they proudly advertise on hoardings across the city It is what they dont talk about that worries meThe next time you receive a video on WhatsApp of a senior citizen weeping her eyes out after being told her savings have been wiped out think about where your money is how hard you have worked for it and whether it will be there when you need it most This year it happened to customers at PMC Bank Next year it could be your turnWhen he isnt ranting about all things Mumbai Lindsay Pereira can be almost sweet He tweets lindsaypereira Send your feedback to mailbagmiddaycomThe views expressed in this column are the individuals and dont represent those of the paperCatch up on all the latest Crime National International and Hatke news here Also download the new midday Android and iOS apps to get latest updates