On why it is important to get the bank to furnish accounts

This illustration has been an exhibit in the DRT and DRAT hearings and has been part of the letter to the Governor Reserve Bank of India, copied to the Finance Minister and has been convenient not to take note of.

Over $ 1.5 million by way of inward proceeds, direct from the Bank of Montreal, which is my overseas customer's bank, flew into my account during 1997-2001. The branch received it as a transaction in an account called FUBP account for which there was no passbook, from there internally moved a large portion of the amount received to an account called PCL account (towards repayment), debited interest, debited bank charges, paid out insurance (on which it did not make a timely claim) which was redundant, created a deposit in the name of the company's directors as additional security, and if there was any balance remaining of a typical transaction of about $50000 after all this, lets say, if INR 75000 remained after all that, that 75000 was transferred to the Current Account which simply showed the day's proceeds as an inward reciept of INR 75000. Period. It didn't say that the total inward remittance was $50000 exchanged for INR 20,00,000, didn't say INR 15 or 1700000 out of this receipt was transferred instantly towards PCL repayment, didn't say INR 50000 transferred to PCL interest, didn't say INR 50000 transferred to FUBP interest, didn't say what deposits were created, didn't say what was paid out towards redundant insurance, didn't say what was taken as bank charges. There were over 50 such transactions and the total inward so grossly unexplained totalled in excess of US $ 1.5 million. Within the bank where did the money go?

A more important reason. The Erode branch of Federal Bank has had two consecutive branch managements during that period that came under investigation for compromising on customer accounts, to say the very least.

And the bank went to court with none of the particulars related to the $1.5 million dollar that it internally adjusted towards repayment and interest, but with an arbitrary two column narration for an arbitrary period of 9 months, without bothering to fill in the second column right as illustrated in the post after next.

Is this permissible by interntional banking standards?

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