Thursday, 19 November 2015

WEIGHTS AND MEASURES


The history of standard weights and measures in India begins in early Indus Valley civilization with the earliest surviving samples dated to the 5th millennium BCE.  The centralized weight and measure system served the commercial interest of Indus merchants as smaller weight measures were used to measure luxury goods while larger weights were employed for buying bulkier items, such as food grains. The Indus civilization excavated pan balances made of copper, bronze and ceramics from Mohenjo-Daro, “Indian astronomers calculated the duration of one ‘kalpa’ (a cycle of the universe during which all the heavenly bodies return to their original positions) to be 432,00,00,000 years.” Evidence of a complex system of weights and measures existing in use for multiple purposes under the central control of the Maurya administration (322–185 BCE) is found in the Arthasastra by Chanakyan. The Arthashastra offers a wealth of evidence for the wide varieties of standardized weights and measures of the time. Officers were appointed to control their use and standardization. Later, the Mughal Empire (1526–1857) used standard measures to determine land holdings and collected land tax as a part of Mughal land reforms.  As a part of these reforms, Akbar the Great (1556–1605) enforced practical standardization in the empire's weight and measure system. The Mughal measurement system measured land in terms of “gaz” and “bigha.” 

 British units of measurement, “Pound/Cwt/Ton” system were adopted in India as first the East India Company and later colonial rule gained foothold.

The Chinese merchant Ma Huan (1413–51) outlines the standardized weight and currency system in place at the port city of Cochin. Ma Huan noted that gold coins, known as fanam, or locally known as "panam", were issued in Cochin and weighed a total of one “fen” and one “li” according to the Chinese standards. They were of fine quality and could be exchanged in China for 15 silver coins of four-“li” weight each. The measure of agricultural output in Cochin was the “Thooni,” for fresh paddy, and “Para,” “Edangazhi” and “Nazhi to measure the dried paddy and raw rice. The solids were measured in a weighing pan with a weight called “Rathal” and “Ton.” The liquids like coconut oil were measured with “Thudam” and “Ounz.” I have kept some of these measures for its antique value. Traditional carpenters used “Kole,” (having a length little less than a meter,) measurements for construction of buildings. “Inch/Foot/Yards” were used to measure length. “Furlong” and “Mile” were common markers on the roads in India. Area of land was measured as “acre” and “cents.”

Government of India passed the Standards of Weights Act, 1939, which came into effect in 1942. This allowed “Tola/Seer/Maund” system to coexist with. 

After the French Revolution, the French government made an effort in producing an international standard of weight and measures based on metric system by promoting legislation. It consisted of a basic set of units of measurement. The driving force behind the metric system was the need for a single, rational and universal system of weights and measures that could be used world-wide. The prefix like “kilo” or “kg” was introduced by the French. The “metre” or “m was originally defined to be one ten millionth of the distance between the North Pole and the Equator through Paris. One “litre” is equivalent to the volume of a cube with edges of 10 cm and the “kilogram” or “kg was originally designed to be one “litre” of water at the melting point of ice. The French law of 18 Germinal, Year III (April 7, 1795) defined five units of measure: The metre for length; the are (100 m2) for area [of land] and the stere (1 m3) for volume of stacked firewood. Similarly the “litre” (1 dm3) for volumes of liquid; the “gramme” or “g for mass; the “second” or “s” and “hour” or “hr” for time; the “degree celsius” or “°C” for temperature; the “volt” or “V” for potential difference; the “joule” or “J” for energy; the “watt” or “W” for power and the “paseal” or “Pa” for pressure. France officially adopted the metric system on December 10, 1799. Areas annexed by France during the Napoleonic era were the first to inherit the metric system.

By 1875 two thirds of the European population and close to half the world's population had adopted the metric system. In 1960, the International Committee on Weight and Measures embraced a modern version of the metric system called System of International Units. Its abbreviation is SI. This abbreviation is used in all countries there are no other ways to abbreviate SI. It is also important to know that SI is just another name for the metric system.

All the countries in the world have adopted the International System of Units (SI, or metric system) as their official system of weights and measures except the three countries, Burma, Liberia, and the US. Even these three countries do use elements of the metric system.


Government of India passed a Standards of Weights and Measures Act, 1956, a system to introduce metric system based on Punjab Act, 1942. The metric began in October 1958, making metric weight mandatory by October 1960, and the metric measures were made mandatory by April 1962.

Excerpts from

MEMOIRS

An autobiography
by
Joseph J. Thayamkeril
Lawyer, Kochi, Kerala, India.
josephjthayamkeril.blogspot.com
josephjthayamkeril@google.com
josephjthayamkeril@gmail.com

LIBRARIES, READING ROOMS AND ART CLUBS


The Roman metropolis had more than 25 city libraries in the late imperial period. It was probably the only example of a fairly expansive library system, which we could point out in the past. Intensive research and education at all levels and in all branches of knowledge makes the services of library inevitable. In recent times institutions of scientific and professional training have multiplied manifold to keep pace with the explosion taking place in the sphere of knowledge. Rational functioning of modern life has become impossible without library. Knowledge that is already available is essential in the general struggle for survival, to keep pace with technological development, for rational planning and intervening in a world, which is becoming smaller and smaller through modern methods of communication. The library is the instrument, which collects and make available both knowledge and documentation.

The colonialists and under their direction, the rulers of the princely states showed interest in establishing educational institutions including libraries. A library of five or ten thousand volumes thrown open for free access to the public of a town may be used a thousand times.
           
          There was great enthusiasm in starting libraries, but it was found difficult to manage them properly. As a social institution rural libraries in Kerala were very vibrant and effective in educating and informing people. These libraries were the centers of the community’s social and political life and they led the cultural and literary activities of the society. Committed library activists did their job voluntarily and selflessly. During a period when the circulation of newspapers and periodicals was limited, these libraries and reading rooms served as windows to the world of knowledge for the rural population. They were also the information centres of the village. For the oppressed and the underprivileged sections, these institutions proved to be the first step towards social emancipation. The public space created by the rural libraries was politically and socially also a liberating one. But do our rural libraries keep up this momentum now? Do our libraries continue to play a vital role in the society’s social and political upheavals? The answer is, unfortunately in the negative.

In 1946, some of the youngsters under the leadership of Nanappa Kaimal Naduvammuri, O.I.G. Kaimal Ollarikkat, L.N. Gokulan Master Kannampilly (later shifted from Kumbalam to the Sevamandir Post Basic School at Ramanattukara,) Abu Haji Ponnappilly, Xavier Poovumpally, and Natarajan Master Charanthara resolved to start a village reading room and they erected a thatched shed in the premises of Kunjipareeth Murikkelil at Kumbalam south. The Islanders donated their old books for the library. Thereafter the reading room cum library was shifted to various rented premises. The government bestowed grant-in-aid to the library.  In 1963, a small plot, 2 cents, was purchased from Shri. Annappa Swamy and put up a library building with a tiled roof with the grant-in-aid and other amounts collected from the public. Shri. T.R. Raghava Panicker, Thandasseril (Thalasseril), the headmaster of the adjacent Girls High School too encouraged the development of this library. In 1987-92, a double storied modern building with concrete roof was erected. The library is housed in the first floor and the ground floor is rented out at 4000 rupees per mensum, which fetched a reasonable income for payment of salary to the librarian, sweeper and maintenance of library building. The Library Council of Kerala has recognized this as an ‘A’ grade library and it is receiving grant-in-aid. I reliably understand that the grant given is not enough to purchase new and important books in various fields and therefore the grant has to be enhanced considerably. A committee would be formed to select books and periodicals from the publishers directly.

The Malayalam daily news papers like Mathrubhumi, Desabhimani, Janayugam, Madyamam, Janmabhumi and English news papers like Times of India Peoples Democracy and Gruhalekshmi magazine are supplied free of cost and they have good readership in this library.

Short stories, poetries, dramas, life-history, auto-biography, classics, fiction, historical books and science books were also read. Epics, Geetha, Bible, Koran are available for reference. Other important newspapers, career guidance magazines, agricultural magazines, children’s magazines, and film magazines are to be subscribed in this library. I have noted that more than 80% of the Islanders are regular subscribers of daily newspapers in Malayalam. Some of them subscribe English daily newspapers like Indian Express, The Hindu, Times of India and Deccan Herald.

The library encouraged the youngsters to write short stories and poems and gave them opportunities to present them in the library hall. Shri. Mohandas Chaniyil, one of the voracious readers of this library and a former principal of Govt. College Trippunithura, is the moderator for such events. Talented young members of this library published their books like “Farrah – a Kashmiri Girl” by Srijith and “Rathri-Mulla Chuvannappol” by Mirraj.

Shri. Vikraman (Kaimal) Master, Kannampilly (Lekshmi Vilasom), is an intelligent, and a good teacher. He is a soft spoken, slim and simple in his attire. He used to teach in the Girls High School at Kumbalam. He was an active member of the ‘Deseeya Vikasana Samithy’, (National Development Committee of Kumbalam). At a very young age he exhibited his talents to compose the ‘Vanchipatt’. Shri. Damodharan Poti, the then Minister of PWD came to inspect the Kumbalam-Thevara ferry area to assess the suitability to construct a bridge to the mainland. For that event the folk song composed by him was sung in the canoe while the minister was taken to Kumbalam. This young talent was appreciated by all. The minister congratulated Vikraman Master personally. Due to that inspiration he wrote a few poetry books; 1. English Grammer ‘Ottamthullal’, 2. ‘Thalam’, 3. ‘Malayala Vyakarana Ganam’, 4. ‘Neethimante Raktham’ and 5. ‘Annathe Soothram’. All these books were published by N.B.S. He was awarded a fellowship by the Ministry of Human Resources, Kerala. His name is mentioned as a poet in Samastha Kerala Parishit Directory. I humbly tender this little bouquet of roses, an appreciation, in recognition for his love and contribution to Malayalam literature.

Shri. Premoose Perincheri, one of my contemporaries in Sacred Heart College at Thevara, is a noted Malayalam novelist from Panangad. Shri. Sarasan Chittel has written a few plays and he successfully staged them in festival grounds. They are all members of this library. The rural libraries organize cultural programmes also as part of their anniversary celebrations.

There were actively functioning drama clubs and literary clubs at Kumbalam. Dramas and other cultural programmes used to be frequently staged. Many drama actors and literary workers in Kumbalam began their career in these clubs. In 1960s Netaji Arts Club was founded by Raghava Kaimal Thalasseril, Majeed Murikkel and others and started functioning in the building belonging to Rajan Embramthiri at Kumbalam south.

The PKM Arts Club with a reading room was started functioning in 1988 in the central area of Kumbalam. Kaladharan Pallipurath, Subranabian Moolakkal and Gokulan Vathuveettil were the founders of this club. The club promoted sports and games as well as other cultural activities. They used to conduct a popular football tournament; and a lot of teams from the nearby districts participated in it. Another Reading Room sponsored by the Communist Marxist party is functioning near the panchayat pond at Kumbalam. Sree Narayana Arts Club functioned in the plot given by Narayanan Master Pazhayakolil. There is another National Library and Reading Room at Kumbalam north area founded by youngsters like A.P. Anthony. Lawrence Kelanthara, Ouseppachan Thayamkeril (East), Sudhakaran Vazhavelil and others. Another library is functioning near Kamoth area at Panangad. The politicians and social activists were the organizers and leaders of the rural library movement. They considered this work in the broader frame of their political and social activities.

          The enthusiasm of the earlier generations of library activists is also lacking today. Most of the rural libraries function only in evenings or mornings, during which readers went to libraries and reading rooms in search of serious writings on important social issues.


Excerpts from

MEMOIRS

An autobiography
by
Joseph J. Thayamkeril
Lawyer, Kochi, Kerala, India.
josephjthayamkeril.blogspot.com
josephjthayamkeril@google.com
josephjthayamkeril@gmail.com

Friday, 13 November 2015

PUBERTY RITES OR ‘TERUNDUKULI’


Puberty Rites or ‘Terundukuli’ is a ceremony celebrated when the girl attains puberty and gets her first menstrual period. The attainment of puberty marked an important festival in the life of a girl. She is treated like a princess. For the three days after the menstruation begins, the girl had to remain in isolation. She was secluded in a separate room for fifteen days, where only ladies are allowed. An oil lamp would be lit in the room, in front of which a bunch of coconut flowers would be placed inside a bronze vessel filled with water. The belief was that the girl would have as many children as there were tender coconuts on the bunch of flowers. All the close aunts and their families are informed and they brought to her varied sweets and ‘Payasam’, a dessert with rice, and gifts the following days, as a recognition on attaining the status of a young lady. The girl is given nutritious food including eggs on those days.

It is significant to note that when a girl reaches puberty she is given many warnings by elder ladies to stay away from boys!


On the 16th day, after the period of pollution was over, all friends and relatives are invited and some rituals are performed by the priest. The girl is decorated like a bride on that day with a new sari, jewelleries and made to sit in front of relatives and friends and the priest does some puja (worship) and then the girl would be taken out to the family pond for a ceremonial bath with neem leaves and turmeric powder mixed in the water. The women folk present at the pond site would make a ‘Kurava’, a shouting by women, like “Lu..Lu..Lu..Lu.. with their tongue out, and covering their mouth with one hand, to announce the good news to the world. During the bath, women sang and swam with the girl. Then she is again made to wear new sari and made to sit in front of relatives and friends and the elders bless the girl and give gifts. Then with a great vegetarian ‘Sadhya,’ feast the function comes to an end. This big ceremony is information to the relatives that the girl is now ready for marriage. Child marriages were prevalent till the early decades of the 20th century. These rituals varied slightly from caste and community. At present such ritual traditions have started fading out.

Excerpts from

MEMOIRS

An autobiography
by
Joseph J. Thayamkeril
Lawyer, Kochi, Kerala, India.
josephjthayamkeril.blogspot.com
josephjthayamkeril@google.com
josephjthayamkeril@gmail.com

POST-WEDDING RITUALS

The most significant post-wedding ritual after the marriage is the new bride’s welcome into her new abode which is dotted with various customary games and rituals that act as an ice-breaker for the nervous bride.


Generally, the bride and groom enter the new home in their wedding attire.  South Indian brides wear silk saris, in red color, along with the traditional gold jewelry and long plait hairstyle with flower adornments.

These ceremonies take place at the groom’s home where the bride’s mother-in-law gives the new couple a warm welcome.  This is known as the ‘Grihapravesa’ or home coming.  This ceremony usually requires the presence of the entire family of the groom in particular, apart from the presence of his extended family.  The ‘Aarathi – uzhiyuka’ – to stroke or polish round bodies far infrared rays is performed, by the mother-in-law for the newlywed couple

During the ‘Griha Pravesha’, the mother-in-law then applies a Tilak to the bride, after which the couple seek blessing from the elders present. After this the bride is to tilt a pot laden with rice using her right foot and then step into a dish with Alta.  After this she is to walk into the home leaving behind auspicious red footprints which is symbolic of the arrival of Goddess Lakshmi.
The arrival into a new home with new relatives and responsibilities is overwhelming for the bride.  Hence, in order to break the ice and make her feel more comfortable, ritualistic post-wedding games are performed after the bride’s entry.  Although times have changes and couples essentially meet prior to their nuptials, the conventional post-wedding games are still practiced.  Initially, they would contribute towards increasing the familiarity and the proximity of the wedded couple, however, today they are just a customary practice that brings in the fun element after the painful parting with her blood relations.


Christians too follow some of these rituals. Apart from this the mother-in-law put a cross on the forehead of the bride and bridegroom before entering the home.

Excerpts from

MEMOIRS

An autobiography
by
Joseph J. Thayamkeril
Lawyer, Kochi, Kerala, India.
josephjthayamkeril.blogspot.com
josephjthayamkeril@google.com
josephjthayamkeril@gmail.com

Thursday, 5 November 2015

DEPOSITORIES


Sensible people do not keep large amounts of money in their homes. The present day politicians may be an exception to the general rule. I have been told that my ancestors used to bury gold in temple premises; nobody dared even to touch it. My great-grandfather, who was the Dezavazhi, ruler of a minor principality of Kumbalam Islands, erected a private chapel in place of a former sacred serpent grove in one corner of his compound. There he installed a deity, an attractive photo of St. Antony. There is an adage that my great-grandfather too buried gold coins in a copper pot with a stigma attached to it, “Those who excavate, treasure-hunt and / or share it will be cursed; they and their children would become crazy and / or crippled.” My grandfather erected a pukka chapel with stones joined together with lime and mortar and installed a statue of St. Antony.

Excerpts from

MEMOIRS

An autobiography
by
Joseph J. Thayamkeril
Lawyer, Kochi, Kerala, India.
josephjthayamkeril.blogspot.com
josephjthayamkeril@google.com
josephjthayamkeril@gmail.com

EXPLOITATION: CHITTIES, POSTAL SAVINGS SYSTEM, BANKING AND USURY LOANS


Sunday afternoons are always busy for the Islanders of Kumbalam. That is the day for their investment in Chitties or Kurries and to take part in the auction for prize money. The local Chitty or Kurry is a transaction by or under which a person orally enters into an agreement with specified number of persons that every one of them shall subscribe a certain sum of money by way of periodical installments over a definite period and that each subscriber shall, in his turn, as determined by lots or by auction or by tender or in such other manner as per local customs, traditions and practices, be entitled to the prize money. Most of such Kurries are running smoothly. I have noticed that sometimes a few dishonest persons who joined such Kurries would try their best to get the auction and would collect the prize money at the earliest. After collecting the prize money without furnishing any security or guarantee, they would default and neglect to pay the future installments. In most of the cases, the foreman of the Kurry too might not have financial stability and he too would abscond at the detriment of those who have not auctioned or collected the prize money. Many of such cheated subscribers are not aware that they ought not to have joined in an illegal and unregistered Kurry or Chitty transaction and their grievances, if any, are not redressable through a court of law. It is the primary duty of the government to make the rural population aware that they are conducting legally enforceable chitties through government agencies like Kerala Financial Corporation and Kerala State Financial Enterprises and direct the institutions to give the prize money on reasonable guarantee to help the common man.
Rural poor had no choice but to keep their small funds at home or on their persons. Postal Savings System was introduced to provide depositors who do not have access to city banks as a safe and convenient method to save money. This promoted the saving habit among the poor. The postal savings system was introduced in Kumbalam in 1970s which encouraged the common man to save for a rainy day. In 1973, a branch of a scheduled bank namely the Federal Bank Limited was opened at Panangad in Kumbalam. I still remember their Branch Manager, Shri. Augustine Mannassery (Thuravur,) who used to visit my father to canvass deposits for their bank. Subsequently, the South Indian Bank Limited established a branch at Kumbalam in the year 1979. In 2011, the State Bank of India too opened a branch at Panangad in Kumbalam Village. The present location of the Kumbalam Branch of State Bank of India at Panangad is inconvenient to the Islanders. In order to cater to the needs of all the four Islanders of Kumbalam Village, this Branch should be shifted to a more suitable place at Matavana Junction, facing the  National Highway-47. 
The financial crisis of 2007-08 caused many banks to crash, including some of the world's largest banks, and provoked much debate about banking regulations.

It is significant to know the theory behind charging interest. “Interest” is compensation paid by the borrower to the lender for deprivation of the use of his money (Riches Vs Westminister Bank [1947] Appeal Cases 390.) “Compound Interest” is interest upon interest; where accrued interest is added on to the principal sum and the whole is treated as a new principal for the calculation of the interest for the next period. “A child is dear to his father, and a grand-child is dearer than the child,” is the hypothesis behind interest and compound-interest. Food money in the shape of olives, dates, seeds or animals was lent out as early as 5000 B.C. Among the Mesopotamians, Hitites, Phoenicians, and Egyptians, interest was legal and often fixed by the state. Divine Torah and later sections of the Hebrew Bible criticize interest-taking from close relations, but interpretations of the Biblical prohibition vary. One common understanding is that Jews are forbidden to charge interest upon loans made to other Jews, but obliged to charge interest on transactions with non-Jews, or Gentiles. However, the Hebrew Bible itself gives numerous examples where this provision was evaded. The Bible reads, “Christ drives the Usurers out of the Temple.” Israelites were forbidden to charge interest on loans made to other Israelites, but allowed to charge interest on transactions with non-Israelites. Originally, the charging of interest known as usury was banned by Christian churches meaning the charging of interest at any rate was banned. However over time the charging of interest became acceptable, the term came to be used for interest above the rate allowed by law. In Islam it is strictly prohibited to take interest; the sacred Koran strictly prohibits lending money on interest. “O, you who have believed, do not consume usury, doubled and multiplied, but fear Allah that you may be successful” (3:130) and “Allah has permitted trade and has forbidden interest” (2:275.) In order to avoid the aforesaid prohibition and to avail an increase in capital with no services provided, they adopted other means. It was achieved by charging for loans in various other ways like fees for services rendered, risk sharing or insurance, and different ownership models such as rent out and leasing. I am of the opinion, “Whatever be the nomenclature, money that accrued on capital is interest.”

There are unregistered private money lenders at Kumbalam, who provide usury loans and harass their customers. For example, if one needs a loan of 1,00,000 rupees, an amount of 10,000 rupees would first be deducted as advance repayment from the loan amount. Subsequently, the amount of 1,00,000 rupees would have to be repaid with monthly rests of 5% p.m which ultimately amounts to more than 60% p.a. Apart from promissory notes, blank cheques the borrower should handover his original title deeds and other documents relating to his immovable assets to the money lender. Very often an agreement for sale of the property too is executed for a price the money lender dictates. Authorities who are bound to challenge such wrong-doers often change sides to harass the poor debtor. One comes across a few Tamilian money lenders on the village roads advancing small usury loans. The government has to be vigilant and take stringent action against such persons looting the public at large. I have noticed fish vendors who take a usury loan of 1000 rupees. They will get only nine hundred rupees in hand. They buy fish and sell it in retail and make 2000 rupees or more and return thousand rupees to his lender the same day by evening. Here also the common man bears the brunt of the lender. 

Do plastic credit cards change the attitude of the younger generation? The answer to this question is quite obvious. They spend more, save less and take plenty of loans. I was astounded when one of my clients, Shri. V.R. Desai, founder and managing director of Desai group of companies, told me that both corporate and nationalized banks provide usury loans through which they harass and intimidate their customers. These banks engage aggressive recovery agents on commission to carry out their collection. They hire musclemen aka goondas to collect usury interest from customers. Shri. V.R. Desai is an entrepreneur with varied businesses. He is a whole sale dealer in paper, oil, and a real estate developer, specializing in building multi-storied commercial buildings and residential apartments. I was taken aback when he narrated the heartrending tale of one of his employees, Mr.X. He told me, “Mr. X had joined M/s Desai Homes as an employee. He is an efficient worker but was always very gloomy. On inquiry, he confided to me that he was initially working in a computer firm where they were paying him 10,000 rupees per month. While working, he married his class mate with whom he had been having a steady relationship. It was an inter-caste marriage. Both their families were against the alliance. Therefore, they were forced to live separately in a rented house. He resigned his job and joined another company for better prospects. They offered him 15,000 rupees per month. Their cart was moving smoothly till the recession tumbled their apple cart. He lost his job on the principle “last come first go.” He was frantic for a job. He moved from pillar to post, but in vain. He had nothing and no one to fall back on; the scarcely used plastic credit cards dumped on him by the banks finally came to his rescue. He bought provisions on credit to keep the dog off the door. As he defaulted to pay the prohibitive interest and compound interest rates at 70% or more with monthly rests, hefty goondas started coming frequently to his house hurling abuses which were aimed at causing alarm, distress and humiliation. It was very embarrassing for him as they did this in front of the public in his residential locality. It was at this point that I (Shri. Desai) offered him the job in his company. Mr. X disclosed that on salary day, these hefty goondas would wait outside the office and collect the entire pay packet. Are the banks worse than the wicked and reviled money lenders?” he quipped. Shri. Desai decided to help him out of this terrible situation. When asked whether he had any immovable property in his own name or valuable furniture or other movables that can be attached, he replied in the negative. I told him, “The banks can take legal measures against defaulters if they want to. But the banks are not legally entitled to take law into their own hands. Using obscene, profane and offensive language or threatening to use violence or other criminal actions to harm customers, their property or their reputation is illegal. In 2007, the RBI had framed guidelines on how debt recovery agencies should approach customers and conduct their business. The courts have passed a series of judgements against aggressive recovery agents and consumer commissions too have pulled up banks in the past for hiring musclemen to carry out their collection. In the event of the bank resorting to illegal methods, the affected party should go to court. I promised him that I will handle the situation and advised him not to pay the salary all at one go. I collected the phone numbers of the bank managers. The banks took my advice seriously and restrained themselves from disturbing him.

From my personal experience as a corporate Bank’s standing counsel, the debtors, generally, do not collect copies of the documents they execute at the time of availing the loans. This is because of the fiduciary relationship and the dominance of the creditor bank. The debtor who is at the receiving end is always weak. They don’t even read the terms and conditions of those loan agreements, printed in tiny letters, executed by them. The banks take blank revival letters too from the debtors acknowledging their liability in order to use it on a future date. Many debtors do not know what compound interest is and how it is calculated and how and when the interest becomes part of the capital or when penal interest is charged. They are ignorant about the other hidden charges attached to a loan account. They put their signatures wherever directed by the bank officials. The debtors hardly contest suits or other legal proceedings initiated by the banks. The civil courts also take the words of the bank managers for granted and pass orders or judgments and decrees in favour of the bank. They mistake the Bank as an entity exercising a sovereign function. While mobilizing deposits and disbursing loans or initiating / enforcing recovery proceedings the bank officials are not discharging any public duty of the sovereign and therefore they are not entitled to any immunity whatsoever. The government, the major share holder, has absolutely no control in the management or affairs of the bank or on the appointment, payment of salaries and other emoluments and taking disciplinary action against bank employees including dismissal from their post. The banks even blatantly violate the guidelines of the Reserve Bank of India with impunity. They often refuse priority sector loans to common man. It is pertinent to note that the bank officials are not gazetted officers. (Gazetted Officers are executive / managerial / supervisorial level ranked public servants in India. Authority for a gazetted officer to issue an official stamp comes from the President of India or the Governors of States. To that effect, they are de jure representatives and delegates of the Indian State and the President. The Gazette of India is published on a regular basis by the Directorate of Printing Department of Publication, Ministry of Urban Development, and Government of India. It is an official Central Government or State Government publication, which publishes the appointments or promotions of certain government officials. An officer or public servant, who is appointed under the seal of the Governor in case of a Federal State or by the President of India at the national level (and in the Union Territories), requires being listed in the Indian Gazette or State Government Gazette and is considered to be a Gazetted Officer. If a person's name is published in the Gazette, he/she is called Gazetted.)

I have come across decisions of the High Court of Kerala and other High Courts, (Kurian v. State of Kerala, 1982 Cri.L.J. 780 (Kerala High Court) and Republic of India v. Khagendranath Jha, 1982 Cri.L.J. 691 of the Orissa High Court,) holding those employees of State Bank of India and other nationalized banks are “public servant” within the meaning of section 21, clause 12 of Indian Penal Code.” In Kundan Lal Sharma v. State of Punjab, 1981 Cri.L.J. 1411 wherein the Branch Manager of United Commercial Bank a Nationalised Bank was held to be a public servant. The Supreme Court of India too had occasion to hold that the employee of a Nationalised Bank to be a 'public servant. I would submit that the above decisions have got a different scope and application only in criminal proceedings. In K. Ch. Prasad Vs Smt. J. Vanalatha Devi and Ors. AIR 1987 SC 722, while examining whether sanction under section 197, Criminal Procedure Code is essential before prosecuting an employee of a Nationalised Bank, the Supreme Court held that though he is a 'public servant still on his criminal prosecution the provisions of section 197 are not attracted.

The explanation to Section 2 (Definitions), in the Prevention of Corruption Act, 1988 [Act No. 49 of 1988 dated 9th. September, 1988] “State” includes a corporation established by or under a Central, Provincial or State Act, or an authority or a body owned or controlled or aided by the Government or a Government company as defined in section 617 of the Companies Act, 1956. (c) “public servant” means- (i) any person in the service or pay of the Government or remunerated by the Government by fees or commission for the performance of any public duty; (ii) any person in the service or pay of a local authority; (iii) any person in the service or pay of a corporation established by or under a Central, Provincial or State Act, or an authority or a body owned or controlled or aided by the Government or a Government company as defined in section 617 of the Companies Act, 1956. Similarly, Section 21, in the Indian Penal Code, “Every person who holds any office by virtue of which he is empowered to prepare, publish, maintain or revise an elec­toral roll or to conduct an election or part of an election; in the service or pay of a local authority, a corporation established by or under a Central, Provincial or State Act or a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956.) In the Indian Penal Code, section 409 (Criminal breach of trust by public servant, or by banker); section 376 (Punishment for rape. being a public servant, takes advantage of his official position and commits rape on a woman in his custody as such public servant or in the custody of a public servant subordinate to him; section 173 (Preventing service of summons or other proceeding, or pre­venting publication thereof); section 190 (Threat of injury to induce person to refrain from applying for protection to public servant); section 353 (Assault or criminal force to deter public servant from discharge of his duty) and section 200 in the Code Of Criminal Procedure, 1973. But these disadvantages and privileges will not apply to civil actions or proceedings by the bank managers.

I recall a unique case where I appeared for the principal debtors and others and against Dhanalakshmi Bank Limited (O.A. No. 164 / 2002 of D.R.T. Kerala.) It was a case where the bank advanced a cash credit loan of 20 Lakh rupees on 20-12-1995, which was enhanced to 35 Lakhs rupees in 1998. The bank claimed a total sum of 1.10 crores. In another connected suit, O.S. No. 136/2002 of the Sub Court at Kottayam, was pending for a sum below 10 Lakhs from the same debtors and both these claims with interest, costs and charges work out to more than 1.35 crores. I challenged the exaggerated, partial, incorrect and incomplete certified copy of bank accounts for the period from 6-11-1999 to 4-2-2002 produced by the bank on the following among other grounds: - “The cash credit loan is repayable only on demand. The Original Application is not maintainable for want of valid demand or notice to all the alleged debtors and mortgagors. It was further contended that the interest charged is in excess of RBI guidelines; incorrect additions were made; clearing cheque return charges were arbitrarily applied; calculation of interest was erroneous; the rate of interest was not mentioned on ledger as per the guidelines of the Reserve Bank of India; cheque return charges were applied at hundred rupees, which was far above the norms in this regard; arbitrary charges were added to account including penal interest and quarterly interest on the same; the rate of interest applied by the bank was above the contract rate and far above the rates fixed by the Reserve Bank of India or charged by any other banks and therefore the certified copy of the partial account produced may be rejected / discarded and the entire accounts maintained by the bank may be reopened. It was submitted that charging of penal interest on the account with quarterly rests was against the decision of the Supreme Court of India reported in AIR 2001 SC, Central Bank of India Vs Ravindra.” The other alleged debtors (mortgagors), contended, “The original debtor, father of defendants, expired on 6-11-1972 and he died intestate. His properties devolved on his 12 children as per the provisions of the Indian Succession Act. Two brothers colluded and executed a partition deed and one of them obtained the cash credit loan by depositing that fraudulent partition deed as collateral security. He in collusion with the branch manager and their counsel fraudulently created affidavits relinquishing the rights of other sharers in the mortgaged properties. In the absence of registered relinquishment deeds; those affidavits have no value in the eye of law. The original debtor is no more and hence legal representatives of the deceased brother alone are liable for the loan transaction. The other sharers of the mortgaged property were aliens to the loan transaction mentioned in the Original Application and it is against law to proceed when the disputes relating to the suit and objections were pending decision of the Sub Court at Kottayam and Debt Recovery Tribunal, Kerala respectively. They are neither principal debtors nor guarantors nor mortgagors under the alleged loan transaction with the bank.  But the bank filed a false and frivolous claim before Debt Recovery Tribunal (DRT) Kerala. Another civil suit for partition of property was pending before Sub Court at Kottayam in respect of properties allegedly mortgaged to the bank. While the matter was pending before the Debt Recovery Tribunal at Ernakulam, the Dhanalakshmi Bank capriciously and daringly issued a notice, threatening attachment and dispossession from the ancestral residential house of the strangers who are the common owners, under the new enactment, the SARFAESI ACT (the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002) and forthwith attached the alleged mortgaged properties of strangers to the loan transaction. The SARFAESI ACT gives such unguided unbridled and arbitrary powers to the dominant creditor bank. The notice for dispossession was unfair, and improper; grossly arbitrary, unreasonable, without jurisdiction and hence it was liable to be quashed or declared to be illegal to proceed against the properties of strangers to the loan transaction. Hence the High Court of Kerala intervened and granted stay and thereafter the bank was restrained from their attempt to dispossess the property of strangers to loan transaction as per judgment in O.P. No.    2002 of the High Court of Kerala. I have grave doubts whether the SARFAESI ACT 2002 was passed hastily by the parliament without much deliberation. The Banks often misuse such unguided unbridled and grossly arbitrary power to the detriment of poor debtors, and a reason for rampant corruption. Hence, in my humble opinion, the SARFAESI ACT 2002 requires reconsideration by the Parliament. Shri. K.P. John, an erudite and sober Presiding Officer (a senior grade District Judge,) while hearing the petitions to direct the Dhanalakshmi Bank Limited to produce the entire accounts and also circulars of the RBI guidelines with regard to interest applicable for the relevant period advivised the bank to settle their claim out of court. Finally, the bank compromised the suit claim for an astounding sum of thirty-five lakhs of rupees only and the bank accepted it in full and final satisfaction of the claims in the Original Application and the suit pending in Sub Court at Kottayam. Did the hierarchy of the bank initiate action for personal accountability?

With  the new enactments, the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 and the SARFAESI ACT (the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002) coming  into force, experienced senior grade District Judges were appointed as its Presiding Officers of the newly constituted Debt Recovery Tribunals. The officers of the bank who had no occasion to conduct a case in court shall not be appointed as Presiding Officers of Debt Recovery Tribunal; their inefficiency would breed in corruption. The execution of the orders passed by the Presiding Officers requires competence and experience. The rights and interest of parties to the case as well as that of third parties are often involved in the execution side; and a judicial officer of the same caliber is indispensable to sort out and determine the issues between the parties thereto. However, the new Acts provided only Recovery officers, who do not know the fundamentals of Law and Justice. Their inefficiency always breeds in corruption. I am amazed to learn that they are hand in glove with regular bidders in auction of mortgaged properties and they auctioned the mortgaged properties for paltry amounts, when their palms are properly greased. The public auction should be conducted, only after public notice especially in the main vernacular newspaper/s and it should be conducted in open court in the presence of a senior grade District Judge to avert such allegations. Necessary amendments have to be made in the Acts and Rules.

I have reliably learnt that there are bank managers who refuse loans to the common man even when the debtor points out similar loans were disbursed by other branches of the same bank situated in another locality. Some of them harass the debtors by asking for additional documents and better security. Some of the bank managers take 2% commission for granting loans. Some of the branch managers through their wife’s name dump insurance policies on debtors and failed to continue the policies with the result the debtor lost their claim on policies. There are bank managers who go in a tourist-taxi for inspection to a number of business establishments of their debtors. They use the same cab for their personal needs. They ruthlessly debit such expenses on debtor’s loan accounts. I have come across bank officials who forge letters and other documents to revive the bank’s claim. There are instances where the gold deposited under gold loans were not sold and realized the loan amount due with interest at the right time after giving notice to the debtor. It is unfair and improper to ask the debtor to pay the balance, if any, on gold loan, which was occasioned due to the default of the bank. When the government corporate, nationalized and scheduled banks neglect, harass and refuse to advance finance and credit at economical rate where does the common man, the small and marginal farmers, go; they fall as an easy prey to the local money lenders who exploit their helpless situation.

In ‘Hundi’ (inland bills of exchange) transactions, consignor/seller entrusts his goods with a recognized transport carrier. This carrier undertakes to transport the goods to the destination of the consignee/buyer through bank. The consignor presents the inland bills of exchange, lorry receipt and other documents to his Bank and /discounts/collects the total price of the goods, handed over to the carrier, and covered by the inland bill of exchange. The consignor then sends the original bill and other documents to the consignee.  The consignee then has to submit the original lorry receipt and pay the bill amount at the destination branch of the Bank. After completing this formality he is allowed to collect the goods from the transport carrier. I have noted that the consignee in collution with bank release the goods from the transport carrier without making the payment, and in many cases put the interests of consignor in jeopardy.

I have noted that the banks conveniently forget and deliberately neglect to pay the bills for services rendered to them. I recall the suit filed by Chitra Printers and Publishers, a division of Chitra Communications Co. (P) Ltd. against the South Indian Bank Limited at Trichur, to recover the printing charges of the New Year Cards 2000, that were printed for them. Chitra Printers delivered all the New Year Cards on various dates from 25-11-1999 to 12-12-1999 and the Bank accepted it without any protest and made use of all the greeting cards supplied to them. Chitra Printers presented the bill of 2,20,750 rupees on 20-12-1999 and the bank effected part payments of Rs.1,10,000 and Rs. 65,000 on 31-12-1999 and 13-1-2000 respectively. The bank delayed the balance payment to Chitra Printers on lame excuses such as delay in delivery of cards and challenging the quality of paper used for printing the cards. Since the bank raised such a contention, the dealer, M/s Global Boards Ltd., has certified that the GSM of board used for printing cards was 180 GSM. If they had serious objection the bank should have rejected the goods then and there. It was neither fair nor proper on the part of the bank to delay payment of the balance amount of 45,750 rupees with interest due on the bill. The actual fact was that Shri. K.B. Kannampilly, the managing director of Chitra Printers, was not prepared to butter the palms of the bank officer who was in charge of the stores department of the bank. Therefore, Chitra Printers was compelled to file a suit against the bank and further an appeal to the District Court. Immediately on passing the appellate judgment and decree, the bank discharged the liability. (O.S. No. 1759 of 2000 of the Munsiff Court at Ernakulam and A,S, No. 183 of 2003 dated 9-8-2003 of the District Court at Ernakulam.) Did the South Indian Bank Limited at Trichur take any action against the Bank Officer who was in charge of the stores department; the one who damaged the reputation of the bank? I have noticed that even State Bank of India neglected to pay the professional fees and charges rendered by lawyers to them. Even when they delayed payments; they failed to pay the interest due on delayed payments made on professional bills and charges. Lawyers even refused to appear and relinquished vakalaths for corporate banks.

Banks compete with each other in opening a lot of branches even in remote villages in Kerala. Unlike the widely held belief, their mission is not to help the poor farmers or enteprenuers engaged in small scale industries; but to mobilize deposits from Non-Resident Indians. The interest on such NRI deposits is meagre and they give much lesser to the deposits made by the resident Indians. This NRI money that is deposited goes to big corporate houses; the terms and conditions of which are dictated by them. These amounts are expended ruthlessly for the import of unnecessary luxury goods and costly machineries in order to obtain kickbacks. [This would amplify the reason why the big public limited companies like Hindustan Machine Tools Ltd, one of the world renowned manufacturers of machineries and tools are being neglected. Don’t we have brilliant engineers to manufacture world-class weapons? Why don’t we encourage our brilliant engineers and technicians? Why don’t we stand on our own feet?

I am aware that Commercial Paper is an unsecured promissory note with a fixed maturity of not more than 270 days, issued (sold) by large corporations to obtain funds to meet short-term debt obligations, typically for the financing of accounts receivable, inventories and meeting short-term liabilities and is backed only by an issuing bank or corporation’s promise to pay the face amount on the maturity date specified on the note. Since it is not backed by collateral, only companies with excellent credit ratings from a recognized credit rating agency (CRA) will be able to sell their commercial paper at a reasonable price. Commercial Paper was introduced in India in 1990. Its usage is limited to only blue chip companies. A corporate would be eligible to issue CP provided – the tangible net worth of the company, as per the latest audited balance sheet, is not less than four crores of rupees. Commercial Paper is usually sold at a discount from face value, reflecting prevailing market interest rates and carries higher interest repayment rates than bonds. Huge amounts are being given to blue chip companies in India. Do they pay it back in time?

On one hand, many of the big corporate houses fail to repay even such discounted rates of interest. On the other hand, banks charge usury interests on loan amounts less than 1 Crore rupees, availed by poor debtors. It is high time we conduct a survey and / or research on the small loans (less than One Crore rupees) advanced by banks and other financial institutions to ascertain the percentage of small scale entrepreneurs actually benefitting from the loans granted to them, or, in the worst case scenario, sweated it out 24x7 just to pay back the exhorbitant interest rates and manage to keep their head above the water. The latter might result in a fleeting afterthought for most households, of a life free from troubles, if not for the blunder of taking a loan in the first place; leading to their living conditions being from far from improved. In my opinion, the colonial theory of charging compound interest serves to subtly rob the poor debtor. Simple interest alone at 10% p.a. for agricultural and educational purposes and 15% p.a. for commercial transactions alone shall be charged. Colonial theory of charging compound interest is real loot on the common man.  This practice has to be deprecated and stopped.

Among non-European countries colonized by Europeans during the last five hundred years, those that were initially richer and more advanced tend paradoxically to be poorer today. That’s because, in formerly rich countries with dense native populations, such as Peru, Indonesia, and India, Europeans introduced corrupt “extractive” economic institutions, such as forced labour and confiscation of produce, to drain wealth and labour from the natives. (By extractive economic institutions, Darron Acemoglu, a Turkish American economist, and James A. Robinson, a British political scientist, the co-authors of a non-fiction book namelyWhy Nations Fail: The Origins of Power, Prosperity, and Poverty,” mean practices and policies “designed to extract incomes and wealth from one subset of society [the masses] to benefit a different subset [the governing elite.]”

But in formerly poor countries with sparse native populations, such as Costa Rica and Australia, European settlers had to work themselves and developed institutional incentives rewarding work. When the former colonies achieved independence, they variously inherited either the extractive institutions that coerced the masses to produce wealth for dictators and the elite, or else institutions by which the government shared power and gave people incentives to pursue. The extractive institutions retarded economic development, but incentivizing institutions promoted it.

“Inclusive economic institutions…are those that allow and encourage participation by the great mass of people in economic activities that make best use of their talents and skills and that enable individuals to make the choices they wish.” For example, in South Korea but not in North Korea people can get a good education, own property, start a business, sell products and services, accumulate and invest capital, spend money in open markets, take out a mortgage to buy a house, and thereby expect that by working harder they may enjoy a good life.

The electric power and the appliances made people lethargic and pleasure seeking. Year after year more and more electric goods like fans, ovens, microwave, T.V., fridges, washing machines, air-conditioners and computers were flooding the market.  The media exploited the public and decided the brand which they should buy and use. There was a great display of luxury by people in the upper social level. At the other end the poor were suffering. The commercial banks too exploited the situation by advancing loans with prohibitive interest rates and encouraged the impecunious customers to buy and use modern electric appliances. Many of the loan defaulters were pushed into debt traps and then dragged into litigations in courts.

A majority of poor farmers of our vast country still depend upon the weather conditions for their varied crops. Both flood and drought weather conditions badly affect their harvest and yield. We often hear from the news media that such farmers and their families committed suicide to escape from debt traps of money lenders and Banks who financed them. Such terrible events should be an eye opener. In such facts sand circumstances it is just and necessary to help these grief stricken farmers who have incurred heavy losses due to no fault of theirs. The Central and State Governments should formulate schemes to provide lnterest Subsidy/Holiday for the period of moratorium on agricultural loans and in extreme cases the governments should write-off the loan advanced to these poor farmers. Another category who deserves Interest Subsidy/Holiday is the Educational Loans availed by students belonging to Economically Weaker Sections from banks to pursue Technical/Professional Education in India. This would enable brilliant students among such categories to attain higher/professional education. They should consider a moratorium period of two years or six months after getting an employment with a reasonable salary to make the repayment, whichever is earlier. It is open to the government to fix riders or eligibility criteria for granting such reliefs to the poorer sections in our society.

It is often seen that due to certain unforeseen circumstances like a change in government policy, the debtor might default to repay loan installments. In such cases, it is not fair or proper for the Bank to initiate recovery proceedings; the Bank could rephase the installments and extend the period for repayment, thereby allowing the debtor to pay back the loan.   The Banks, in very genuine cases, could even advance a further loan on reasonable terms to bail out their customers who have come across hard times. This will enable them to come out successful in their businesses.

Certain infrastructural developmental schemes or policies of the government might land the debtors/loanees into great hardship and jeopardy, and financial trouble. For instance, the central and the state governments ventured into the Metro-Rail Project in the city of Kochi and prohibited parking of vehicles on M.G. Road at Ernakulam and a few other areas on the route. The parking prohibition badly affected the business transactions and many of the business concerns lost their customers too. Some of the affluent businessmen shifted their business to NH-47 and other new shopping malls located at Edappally and Vyttila. The poor sections in the business community are reeling under this inconvenience caused to them. The central and state governments should see that the banks should rephrase their loan installments reasonably for a longer period or declare a moratorium to enable them to repay their loans otherwise the debtors and their families would face hard times.

I had the occasion to come across a lot of debtors who toiled all their life to pay off their debts and interests due and accrued to the bank. I have also seen guarantors who never touched or enjoyed the loan amounts but lost everything they owned due to no fault of theirs; a grave injustice to many of them. I recall a touching note in Arthur Hailey’s book, “The Moneychangers” at page 18, “Pieter Vandervoort, Sr. had burdened himself with a bank loan and, to pay back the interest due on it, laboured from pre-dawn until after darkness. He worked so hard that his Sunday relaxation was usually seven days a week. In the end, he died of overwork and impoverishment, after which the bank sold his land, recovering not only arrears of interest but the original investment. His father’s experience showed Alex – through his grief – that the other side of the bank counter was the place to be.”  (His son became a bank officer.)

There is a tradition of “General Amnesty and Debt Cancellation” in ancient Mesopotamia and Egypt from 3000 to 1000 B.C. Hammurabi began his 42-year reign as “king” of Babylon (located in present-day Iraq,) in 1792 BC. The Hammurabi Code is in the Louvre Museum, in Paris. Hammurabi proclaimed the official cancellation of citizen’s debts owed to the government, high-ranking officials, and dignitaries. The so-called Hammurabi Code is thought to date back to 1762 BC. Its epilogue proclaims that “the powerful may not oppress the weak; the law must protect widows and orphans (…) in order to bring justice to the oppressed.” The many ancient documents deciphered from cuneiform script have enabled historians to establish beyond any doubt that four general cancellations took place during Hammurabi’s reign, in 1792, 1780, 1771, and 1762 BC., when inequality increased and intensified. The Rosetta Stone text confirms that the tradition of debt cancellation was upheld in Egypt by the pharaohs from the 8th century B.C., before Alexander the Great conquered the country in the 4th century B.C. It relates that the pharaoh Ptolemeus V cancelled all debt due to the Throne by the people of Egypt and beyond, in 196 BC. The tradition of general debt cancellation is an integral part of the Jewish religion and of early Christian texts, by Deuteronomy which teaches an obligation to cancel debt every seven years and the Book of Leviticus, (Chapter 25,) on every jubilee, that is every fifty years. The Reserve Bank of India declared a “One-Time Settlement Scheme” for debtors. How many debtors, below 50 lakh rupees, obtained the relief? The people of India are aware that the benefit of the “One-Time Settlement Scheme of the Reserve Bank of India” was availed by the big corporate houses. In most of such settled cases a tiny portion of the collateral security would have been enough to pay off the debt due to the banks, owing to the inflationary trends that prevailed in our economy. The gap between the rich and the poor is widening day by day.

Till 1965, most of the bank managers were matriculates. There were very few degree holders even in the higher ranks. This qualification was adequate for the job. The scenario changed suddenly with the increase in salary. Lured by the lucrative job, post graduates and professionals too joined the banks. They were factually disguised or under-employed. The stark reality was the high rate of unemployment. One wonders why such highly qualified personnel are required to do simple arithmetic calculations like additions, subtractions and calculation of interests; and filling printed forms and agreements. I have noted many of the intelligent staff ended up frustrated and unsatisfied with their jobs. This finally ended in their resignations. Money is not always the criteria; job satisfaction has to go hand in hand with it. I personally know some of those who left their bank jobs. Many of them have found solace in the teaching profession, journalism; some even started concentrating on their plantations. They made more money and attained better satisfaction in life. One such example is my   co-brother, Shri. Thomas Vallikappen. He was a very efficient and dedicated staff of the State Bank of India. At a very young age he rose to the position of Chief Manager of the Bank. His decision to take a voluntary retirement from service was according to him one of the wisest decisions he made. Now, he is engaged in activities of his liking like tourism, editing journals and writing. He has started blogging his articles titled “Spirit of Meenachil,” which is worth reading. Shri. K. Balachandran Kannampilly is another devoted former Chief Manager and Administrative Officer of the State Bank of India, Zonal office, at Ernakulam. He was very close to me. He resigned without waiting the required two more years to obtain pension. He joined IAL Container Line (India) Ltd. 2-B, 2nd Floor, Darragh Smail Centre, W. Island, Kochi as its Deputy General Manager. He also engaged himself in the cultivation of fruits, vegetables, and flower farming at Munnar and Irumpanam, for export purposes. He also owned a printing press, Chitra Printers, at Manikiri Road, Pallimukku, at Ernakulam. He too has started enjoying his life.


It was common for commercial banks to add on interest to the defaulted account on a “due basis” in order to show huge profits; with the malafide intention to claim better salaries and other perquisites for their employees. The management enters into an unholy alliance with trade unions and as part of the collective bargaining through slogans and strikes causing hindrance to the public; such gimmicks are only a camouflage or screen to hide enhancements in salary and other emoluments to bank employees. Most of the officials of banks receive better pay packets than the President of India. This makes them arrogant enough to harass and deny justice to the common man. I was disgusted at the crude behavior of a few branch managers. Banks continued this gimmick untill the former finance minister and later prime minister of India, Dr. Manmohan Singh, interdicted them and directed them to add interest only on a “receipt basis.” In cases where the banks failed to issue a demand notice and neglected to take steps for recovery of the loan amounts with interest, the banks are entitled only to a simple interest at 6% p.a. on the (NPA), Non-Performing Asset. Banks spend lavishly on posh bank office-buildings, elaborate furnishings; including air-conditioners, curtains, carpets, potted plants and flowers, refridgerators, and an assortment of varied soft drinks. The funds for these are made available with usury interests collected from the common man. It is high time to stop such unnecessary extravaganza. Ironically, the poor debtors are the ones who sustain and maintain 2, 22,038 employees of the State Bank of India, and plenty of other employees in other nationalized and scheduled banks and other financial institutions. The high salaries make the bank officials more corrupt. Every day news bring out new bank scams involving hundreds and thousands of crores and CBI and EOW are investigating these frauds. I am pained to observe that the law in this country punishes very harshly the small offenders involved in offences of stealing of small amounts to the tune of few hundreds or few thousands. Such accused are often sent to jail but the big fish who defraud the bank / exchequer of thousands and ten thousands of crores of rupees escape. They are dealt with by investigating agencies in a different manner and the law does not act with the same harshness to these offenders. One wonders why there is nobody to check this anomaly in our economy. The common man raises his eye brows in dismay! The central government should make necessary legislations to check, control and cut down unnecessary expenses of banks and prohibitive interests charged on poor debtors. The government should not ignore the welfare of the people. The central government, insurance companies and the public are the major share holders of the State Bank of India and the other nationalized and scheduled banks and other financial institutions. Doesn’t the government have any role in the management and control over their income and expenditure? Are the appointments of employees fair and proper? Why isn’t the UPSC entrusted with the job to make appointments to fill the vacancies in banks? Are the government and other investors getting any reasonable return on their investments?  Why doesn’t the government commence an Indian Banking Service and appoint civil servants with Economics and Law background in higher levels like Assistant or Deputy General Manager onwards to manage and control the affairs of corporate, nationalized and other scheduled banks and financial institutions? 

Excerpts from

MEMOIRS

An autobiography
by
Joseph J. Thayamkeril
Lawyer, Kochi, Kerala, India.
josephjthayamkeril.blogspot.com
josephjthayamkeril@google.com
josephjthayamkeril@gmail.com