STATE BANK OF INDIA
MILLENNIUM DEPOSIT (RUPEES 3400 CRORES LOST)
The State Bank of India raised 5.6 billion dollars at 8.5per cent
interest under this scheme, mostly from NRIs in the Gulf. The Common
Public would think that so much of foreign exchange was brought to India
from abroad. But in reality about 4 billion dollars were simply
transferred from some other bank in India - money which was already in
India. Only about 1.6 billion dollar of fresh foreign exchange was brought
in to the country.
Under the SBI scheme anyone who had an existing foreign currency deposit
in Indian banks could transfer that money into the SBI's Millennium
Account and gain 2-3per cent more interest. For example I had a fixed
deposit account in dollars with an Indian bank which was getting 5.5 per
cent interest and I transferred that money into the SBI's Millennium
Account. I gain 3per cent more interest for the money which I had remitted
to India more than one year ago! I do gain but what about the country?
Why the country has to bear
3 per cent more interest on 4 billion dollars for 5 years? In addition, a
2- 3 per cent commission as collection charges is paid to the foreign
banks who acted as collection agents for this scheme. Thus in
total 72 crore dollars or 3400 crore Rupees is paid just for transferring
money from one pocket to another.
What For? If this money was lying in the other banks,
mostly private banks in South India, the government cannot play with that
money. Just imagine the amount of commission that will be taken as bribes
by politicians when huge loans are approved by SBI using this 18000 crore
Rupees? Only if large loans are given, politicians can get bribe
for that. The more money the government bank has, the more loans can be
given and more bribes can be received. What if the country loses 3400
crore Rupees in this process? Who cares?
This is just one example on what are the ways of corruption (that most
people will never know at all) and what high a price the country is paying