Unlike trapped Wikileaks, the cobra has found its resting heaven, shoot and hide? Many private and state-run banks and financial institutions had been accused of money laundering who still thrives thanks to jugaad. Many allegations have prompted governments and regulators to direct these institutions to investigate corrupt practices and initiate action against errant employees and profiteers, without any clear end results or positive corrections whatsoever.

Media and oppositions had also accused many banks and financial institutions, including Yes Bank, Reliance Capital, ICICI Bank, Birla Sun Life Insurance and Tata AIA, LIC, some politicians and bureaucrats of indulging in money laundering. (May 5, 2013)

From aiding customers to investing black money in insurance or equity to advising them on ways to avoid coming under income-tax scanner including quoting poor worker’s PAN, buying gold or property, and splitting the money involved into a number of small transactions below some legal threshold, millionaire officials of banks, financing agents and advisory firms had been caught violating the so-called know your customer (KYC for AI fishing) norms put in place to prevent tax evasion and also various laws under Money Laundering, White collar extortion, Income-Tax, Human Rights, Anti-Corruption, and more.

The Insurance Regulatory and Development Authority (IRDA) also asks companies to file reports on corruption allegations, claiming matters being under examination and appropriate actions to be taken? Financial officials direct banks to probe the allegations and suspend errant employees. Though such inquiries were supposed to be initiated and completed expeditiously; ROI jugaad, lobbying and dark funding always wins.

Cobra alleged that ICICI Bank, Axis Bank and HDFC Bank were involved in money laundering, loan extortion, gold frauds and more. Subsequently, the central bank and other government agencies had initiated some investigations to probe the allegations. The RBI investigation revealed few lapses (officially jugaad painted) on the part of these banks pertaining to KYC guidelines and also raised some systemic issues that needed to be just addressed, never to be cured!

RBI issues formal showcause notices against these smart bank officers for many transgressions. They may have private chats and boardroom talks with these “investment banking” geeks cum lobbyists, tell managers and directors about the deficiencies, forensic auditors may do their audit bit… thematic studies completed, back to square one. Regulators may issue them as many show-cause notices or guidelines for some short-term media limelight and hoopla. Underline the fact that offending banks can never give up their profiteering SOPs, this is the raw truth of bloody capitalism by design.

It had released transcripts of conversations involving executives at banks and finance companies where they are shown to be all-too-eager to gain BIG business earnings, even at the cost of violating laws or looting small customers and SMEs. Bank laundering is not confined to private capital shops and whistleblower exposes are not aberrations.

The so-called expert consultants could say — look, economic theories seem very cut and dried on paper, but for a policy maker, like a central banker, the world is complex. There are always a million special factors that disturb the neat logic of whatever theory you’re using. The fixation on inflation, for example, meaning price inflation of one sort or another for commoners, is surely part of the reason that asset bubbles have been allowed to develop benefiting the 1% celebrity millionaires, including before the financial crisis.

A perfect way of inflation targeting or inflating earning of friends? But bank governors says for current inflation we’ve got to blame activists and greedy businessmen, and that sort of thing. Inflation has increased and the governments will never accept that it’s their fault. And they might have a case, too, at least up to a point. Setting aside COVID or the trade and non-trade wars in US, Ukraine or Mid-East, in normal circumstances, at least, there has been an excess of caution, based on fear of rising inflation, on the basis that it will quickly get its way into expectations, and once it does that, it’ll be very hard to control it again.

But in telling them the inflation target is everything, that that’s what you ought to worry about — well, that’s actually an instruction not to worry about asset bubbles or currency bubbles or financial crisis or banksters. And of course, if you instruct the central bank not to worry about these other things, you’ll increase the danger that things will go wrong and small investors will keep on suffering due to corruption and fraud of private banking terrorists.

These mutated financiers are breeds of greedy gujju monsters who serve God in left, Money in right hand, while at that golden moment declaring themselves as replicas of God स्वयम्भू !