Loan Disbursements through ePayments

Loan Disbursements through ePayments.

Today, Reserve Bank of India, Department of Banking Supervision, has released a Notification on Frauds in borrowal accounts having multiple banking arrangements. The Lr.No. is RBI/2008-09/508 DBS CO.FrMC BC No 8 /23.04.001/2008-09, dt.June 24, 2009.

The complete document can be accessed at

http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=5051&Mode=0

The basic point is that the in certain cases the borrowers used the accounts maintained at other financing banks to siphon off funds fraudulently diverted from the bank on which the fraud was perpetrated.

The present norm for Loan Disbursements is through Banker’s Cheque/Demand Draft favoring 01) Suppliers of Goods 02) the borrower.

In case of property purchase, the Banker’s Cheque/Demand Draft is favoring the Seller and the Banker’s Cheque/Demand Draft details are entered in the Sale Deed.

A common fraudulent practice is to open benami accounts in banks, and to deposit the Loan Disbursement Instruments in such accounts.

To minimize frauds, I suggest that Loan Disbursements be routed through ePayments mode (RTGS), as the funds will be routed to the beneficiary account directly. The associated risk of manipulating the Loan Disbursement Instruments is also minimized.

Loan Disbursements through ePayments can be encouraged, except where the Loan Disbursement Instrument Number, has to be incorporated in the Legal Document.

As said in my Profile, my only aim is to increase the number of ePayments in India.

Multiply the delight of ePayments