Crb Misused Sbi Order Lifting Cap On Refund Withdrawals

CRB Capital Markets Ltd had succeeded in siphoning off money from State Bank of India (SBI) by abusing the special instructions issued by the SBI head office to its dividend warrant section.

An SBI circular issued in February had authorised both C R Bhansali and Manjula Bhansali to issue refund orders in excess of the prescribed limit of Rs 10,000 in case of interest warrants and brokerage warrants and Rs 25,000 in case of refund of deposits.

C R Bansali took advantage of this facility and issued refund orders to the extent of Rs 7 lakh, according to V S Samant, president of SBI Officers Association (Mumbai Circle).

 

SBI issues interest warrants and refund cheques in case of 300 companies. The maximum amount payable in case of an interest or brokerage warrant is Rs 10,000 and in case of refund of deposits Rs 25,000. But, the bank allows select companies to issue cheques in excess of this prescribed amount. Hence the concession granted to CRB was not unique. Bhansali started abusing this facility, which was extended to the bank for overcoming procedural hurdles. The overdrawals by CRB began once the circular was issued and nearly 2,000 dividend warrants, each amounting to lakhs of rupees, were issued. SBI was taken for a ride because Bhansali did not maintain the necessary balance in his account with the SBI main branch.

This authority to delete the protective limit had in fact given CRB the chance to rob SBI, said Samant. If the facility had not been given, SBIs exposure would not have been more than Rs 5 to 10 lakh, he added.

Samant said that the management was looking for a scapegoat when they penalised the three junior officials without conducting a proper investigation. Hence the officers association has taken a stand that the suspension needs to be revoked before they can call of the strike.