Modern non-gold banking, like journalism, was born in sin.
The worst problem RBI/banks create is that the banks create money from thin air, and charge interest on it. Say banks create Rs 100 cr out of thin air. Then they will be give to borrowers, be Government or public, only on the condition that borrowers repay Rs 100 cr plus interest. Say interest rate is 8%. Then borrowers will have to repay Rs 108 cr at the end of the year. Pray, how can borrowers repay Rs 108 cr if ONLY Rs 100 cr worth cash was created to begin with? IOW, the borrowers' debt will keep increases. And if and when they go bankrupt, the bankers will grab away their wealth.
This phenonmenon benefits those who own banks, or those who are senior executives in banks, or thoese who have nexuses/friendship with the bank-owners/executives. And this is burden on everyone else.
The problem would have remained under control if our banks' senior staff members did NOT have nexuses with wealthy individuals, who are the regular borrowers as well as habitual defaulters. As of today, RBI and nationalized banks are second most nexused bodies in India, next only to our courts. These nexuses resulted in huge Non Performing Assets (NPA), in which a borrower would just take huge loans and never repay.
The problem with RBI/banks is similar to what we see in Indian courts. In Indian courts, the judges have a long term, and form nexuses with lawyers, criminals, Ministers, officers etc. These lawyers, Ministers etc would take favors from judges and in return, they will provide cash/promotions etc to the judges. The RBI/banks' staff acted in similar way. Some big borrowers would give bribes to RBI/banks' senior staff and get as much loans from banks as they want. The banks' senior staff would give the loans and the RBI-staff, which is supervisor, would just ignore dozens of irregularities involved. The staff knew from the begining that money would NEVER come back, and it did not
The NPA was eventually repaid by commons in following way --- the banks reduced interest rates on deposits, but many Govt bodies kept paying higher than market interest rates on the loans they had taken. And when did these Govt bodies get money to pay? By royalty over natural resources or taxation. In first case, the money that was supposed to get distributed to us commons went into banks to repay NPAs. And in second case, again, the taxation reduced the incomes of the commons.
Solution? CURR.01 : RLPP/Jury over RBI and SBI
The FM will appoint a JA (Jury Administrator) for each district, or use an existing Jury Administrator. The JA will form a Grand Jury using 30 randomly selected citizens of the District. Each citizen's term will be of 3 months.
If a citizen has evidences of wrong doing of any staff member of RBI/SBI in a perticular District, he may present the evidences before Grand Jury. If over 15 Grand Jurors agree that there is a prima facie evidences, then JA will summon a Jury of 12 citizens.
The 12 Jurors will hear the arguments from both sides. If over 8 Jurors declare that the RBI/SBI employee is unfir to serve the citizens, the FM will transfer that employee. After two such transfers, he will be expelled.
