Dec 07, 2008 11:51 AM
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Next time when we require a credit card from any bank, we need to be doubly careful regarding the modus operandi adopted by the bank in issuing of credit cards. Today's recent news items from RupeeTimes and Dinamalar are bringing to limelight regarding a handful of private banking organizations alleged to have issued credit cards to terrorists and they have used it in the recent Mumbai blasts(India's 9/11). The news item is sending chill fear down the spine as we read it.
Our Apex Bank(Reserve Bank of India) has strict regulations for all banking organizations under it regarding issue and operation of banking accounts, credit cards and other monetary instruments like Mutual Funds etc. A proper introduction, address verification, identity verification, PAN numbers are all stipulated as mandatory to ensure proper and legal operation of the accounts. They have brought in rules like KYC(Know Your Customer) which need to be followed strictly to avoid AML(Anti Money Laundering) and Black Money. Almost all nationalized and public sector banks follow these diligently whereas most of the private sector banks take pride in throwing these rules and restrictions to the air which has come to the now grievous extent of challenging the security of the nation.
The following are the banks that are alleged to have overlooked the rules and issued credit cards without proper verification:
1) Citibank
2) HSBC
3) ICICI
4) Axis Bank
5) HDFC
6) State Bank of Mauritius
Source Courtesy:
1) https://rupeetimes.com/news/credit_cards/terrorist_possessed_credit_cards_issued
_by_indian_banks_1901.html
2) Dinamalar Hardcopy Paper and ePaper(dated 7th December 2008). The article, in Tamil, appears on Page 4. For ePaper, you need to register to view. The registration is free for all.I have attached a screenshot of the news for quicker reference of readers here:
https://mediafire.com/imageview.php?quickkey=0tkojuxxdll&thumb=5
As per the article in Dinamalar, the following questions are currently under investigation and have raised the eyebrows of apex bank personnel in suspicion:
1) Were the rules thrown off to the air in issuing credit cards to the terrorists enabling them to roam without any let and go, spending lavishly to accomplish their sinister objectives in Taj and Oberoi?
2) Were there any benami type issuance of credit cards(aka) was the credit card issued to some one else and then used by the terrorists?
3) Who were the banking(credit) committee that approved use of these credit cards and their past performance/behavior/profile/(mis)demeanour are being analysed.
Whatever it is, there can not be smoke without fire. With the credit card operations of many private banking organizations already under close scrutiny with respect to unfair interest rates, unscrupulous and unlawful recovery procedures, this is yet another feather to adore their malicious crown. This sends another message to us, to act with more care and precaution, whilst dealing with these banks.
Hence I just thought I would share this message as a review with other readers for the benefit of everyone.
