The Hindu Business Line : Third list of terminated bank agents out

Thiruvananthapuram/Chennai, July 4 Some more weeding out, of tainted service vendors to banks, is under way. The Indian Banks’ Association (IBA) has come out with the latest list of outsourcing agencies whose services have been terminated by member banks. This is the third such list prepared by the IBA, in compliance with Reserve Bank guidelines.

There are 11 agencies in the third list. The earlier two lists had 43 agencies which were terminated for various offences.

The entries in the latest IBA blacklist are: Say Marketing, Jaipur, Rajasthan; Mercy Unlimited, Jalandhar, Punjab; Accurate Commercial Services, New Delhi; Perfect Planet Enterprises, New Delhi; Banyan Solution, Bangalore; Venture Capital, Kolkata; Legends Collections Services, New Delhi; B. M. Enterprises, Delhi; CSC Financial Services, New Delhi; Dollar Line, New Delhi; and Perfect Communications, New Delhi.

Reasons

The reasons for termination ranged from submission of forged documents indicating dishonesty or lack of integrity; sourcing of fraud cases or where sourcing mismatches have been found; misuse of bank’s funds; frauds committed by the agency owner or breach of trust/contract by the agency; to the case of a proprietor being found involved in a Net banking fraud case in New Delhi. The blacklisted service providers were into sales and collection activities, the IBA circular said.

Banks in Kerala cautioned

In a separate case, the Reserve Bank has cautioned banks in Kerala against a fraud perpetrated by a rural marketing agent (RMA) on one of the banks operating in the State.

The RMA who was appointed for sourcing loan proposals from farmer cooperative societies, was found to have misappropriated the funds collected. He had advised the societies to draw cheques/DDs favouring his personal/related accounts, collecting them on the pretext of placing these funds as deposits with the bank.

He had also misrepresented to the societies that they had to provide guarantee for the obligations of farmers by way of a cash margin. The margin thus collected was diverted for personal use. This has prompted some top banks to advise branches to exercise extra vigil over the activities of business facilitators, business correspondents and recovery agents by exercising due diligence and keeping a close tab on the latter’s dealing with borrowers as well as personal account transactions.

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