Moneylife News Bites

Can you trust your bank to protect your money when its own employees or systems are compromised?From the alleged ₹10.24-crore fraud at Punjab National Bank (PNB) to the ₹590-crore fraud involving IDFC First Bank, recent incidents have exposed serious weaknesses in banking security, internal controls and customer protection.Data leaks at SBI and AU Small Finance Bank, unauthorised access to customer accounts, shared employee logins and manipulation of banking records raise a troubling question: If money disappears from your account without your knowledge, who is responsible for proving what went wrong?In this Podcast, Sucheta Dalal examines the growing risks to bank deposits and customer data, including:- How insiders can misuse employee logins to siphon off customer funds- Why the PNB fraud remained undetected until a customer updated her passbook- How IDFC First Bank swiftly refunded government money while ordinary depositors often face prolonged disputes- The risks posed by data leaks, third-party platforms and unauthorised access to banking systems- Why digital banking and disappearing paper trails make it harder for customers to challenge fraudulent transactions- What RBI's customer liability rules mean for depositors- Why banks must be held accountable when their own employees or systems failAs banks push customers towards digital transactions, linked accounts and third-party financial services, convenience is increasing—but so are the risks.Should customers bear the burden of proving fraud when banks control the records, systems and audit trails?

Why do we blame citizens and businesses when things go wrong in India? Are poor civic sense, reckless driving, inadequate innovation and bad public infrastructure really individual failures — or are they symptoms of a much deeper institutional problem?In this thought-provoking article, Debashis Basu argues that the State must take responsibility for creating the systems, incentives and institutions that shape how people and businesses behave.Drawing lessons from Singapore's urban planning and sanitation, Sweden's road safety policies, and the industrial transformations of Japan, South Korea, China and the United States, he explains how capable governments create the conditions for economic progress, innovation and better public services.From infrastructure and public transport to research and development, industrial policy and regulatory standards, the article challenges the tendency to blame individuals for problems that governments are ultimately responsible for addressing.The central argument is simple: when something is persistently wrong in a country, perhaps we should stop looking downwards to blame citizens and businesses, and start looking upwards at those who govern.

Why do food adulteration and poor hygiene persist despite food safety laws? And what happens when a regulator decides to enforce those laws differently?In this Podcast, Sucheta Dalal examines the Tukaram Mundhe effect—the sweeping changes introduced by Maharashtra FDA Commissioner Tukaram Mundhe to crack down on food adulteration, unsafe food and regulatory failures.Speaking at a Moneylife Foundation event on 24 October, Mr Mundhe explained the thinking behind his enforcement strategy. Instead of relying on routine sampling and delayed laboratory results, the Maharashtra FDA is prioritising inspections, swift action and accountability.The results are striking: 22,000 inspections, over 10,000 improvement notices and more than 1,000 licence suspensions in just four months. The festive-season crackdown has also targeted adulterated sweets, milk products, edible oils, spices, dry fruits and other food items, alongside banned gutkha and scented tobacco.Sucheta Dalal explores how changes in inspection procedures, laboratory testing, complaint handling and legal classification are reshaping food safety enforcement. She also examines the growing legal dispute between Maharashtra's FDA and the Food Safety and Standards Authority of India (FSSAI), and what the outcome could mean for consumers.

The Supreme Court’s verdict on Yes Bank’s AT1 bonds raises serious questions about investor protection, banking regulation and the accountability of financial regulators in India.In this Podcast, Debashis Basu examines the Supreme Court’s decision to uphold the Bombay High Court’s ruling against the write-off of ₹8,415 crore in Yes Bank AT1 bonds. The case goes beyond a legal dispute: it exposes the consequences of mis-selling complex financial products to ordinary investors and the shortcomings of India’s disclosure-based regulatory framework.Despite being high-risk securities meant for sophisticated investors, Yes Bank’s AT1 bonds were allegedly sold to retail customers as “Super FDs”, promising attractive returns while creating an impression of fixed-deposit safety. SEBI’s investigation uncovered serious mis-selling, while the Supreme Court questioned the conduct of Yes Bank, the RBI and the bank’s administrator.In this Podcast, we explore:- What are AT1 bonds, and why are they risky for retail investors?- How were Yes Bank’s AT1 bonds mis-sold as “Super FDs”?- Why did the Supreme Court question the RBI’s role in the episode?- What is disclosure-based regulation, and why can it fail ordinary investors?- Why is handing over a disclosure document not the same as obtaining informed consent?- How can India move towards outcome-based regulation that prioritises investor protection and accountability?Debashis Basu argues that financial regulation must go beyond disclosure requirements. Regulators must examine whether products are suitable for customers, whether sales practices encourage mis-selling, and whether financial institutions are held accountable when investors suffer losses.The bigger lesson: Investors cannot be expected to bear the consequences of regulatory failures simply because risks were disclosed on paper. Effective regulation must protect investors in practice, not just in principle.

Mumbai’s airport reshuffle has been put on hold—but will the extra time be enough to fix the city’s long-standing aviation and connectivity problems?In this analysis, Sucheta Dalal examines the controversy surrounding Adani-controlled Mumbai International Airport Ltd’s plan to shift 265 weekly international departure slots from Chhatrapati Shivaji Maharaj International Airport (CSMIA) to Navi Mumbai International Airport (NMIA), or discontinue some operations. Following strong opposition from international airlines and the intervention of the Ministry of Civil Aviation, the proposed shift has been postponed until the end of the winter schedule, around March 2027.Why did international airlines push back? And what does this mean for passengers?The dispute highlights several unresolved challenges:- Why airlines opposed a forced shift of international flights- Navi Mumbai airport’s last-mile connectivity and public transport challenges- Mumbai’s decades-old airport capacity constraints and infrastructure planning failures- Higher user development fees and the potential cost to passengers- Concerns over cargo handling, logistics and operational readiness- Whether better road, metro and inter-airport connectivity can make the dual-airport model workMumbai’s second airport was meant to ease congestion and improve air connectivity. But a new airport alone cannot solve the problem if roads, public transport, cargo facilities and essential aviation services are not ready.The postponement offers a valuable window to address these shortcomings. The bigger question is whether policymakers and airport operators will use this time to build a genuinely passenger-friendly, commercially viable dual-airport system—or simply shift the existing problems elsewhere.

How did India narrowly avoid a potentially costly encounter with Sanjeev Gupta, the steel tycoon whose business empire expanded across Britain, Australia and other markets?In this episode, Sucheta Dalal examines Gupta’s India foray in 2018, when his Liberty House group announced plans to invest $10 billion and bid for several distressed Indian companies under the Insolvency and Bankruptcy Code (IBC).The promises were grand. The payments, however, were another story.Gupta’s bids for companies including ABG Shipyard, Amtek Auto, Adhunik Metaliks and Bhushan Power & Steel raised serious questions about his ability—and willingness—to complete acquisitions. In the case of ABG Shipyard, his failure to make the required upfront payment contributed to the company’s liquidation, leaving banks with a fraction of what was owed.Sucheta Dalal also explores the wider allegations and revelations surrounding Gupta’s global empire, including its relationship with Greensill Capital, aggressive supply-chain financing, political connections, and the eventual collapse of several businesses.Drawing on investigative journalist Paul Barry’s 2026 book The Big Steal: How Steel Tycoon Sanjeev Gupta Fooled Australia and the World, the episode asks a larger question: Why did banks, regulators, politicians and the media repeatedly accept promises of investment and jobs without adequately scrutinising the money behind them?

When regulation is legal, compliant—and still fails the public, what has gone wrong?In this video, Debashis Basu examines how public interest can be displaced by private interests in India’s policymaking. Using IRDAI’s proposed reforms to insurance distribution, digital lending, the Licence Raj, public-sector banking, RTI and SEBI, he identifies three ways this happens: bad policy design, capture during implementation, and the weakening of institutions meant to protect citizens.The larger question is not whether a policy looks good on paper, but who actually benefits when it is implemented.As India aspires to become a developed nation, public interest must become the governing philosophy of policymaking—not an afterthought.

India’s Gen Z is being celebrated as part of an “Aspirational India” — young consumers entering the formal credit system, taking loans for education, two-wheelers, smartphones, emergencies and small businesses.But beneath the credit-growth numbers lies a more complicated story.In this audio, Sucheta Dalal examines India’s rapidly expanding consumer credit market and asks an important question: when does financial inclusion become over-indebtedness?Credit bureau data shows younger borrowers accounting for a growing share of new borrowing, while multiple-loan borrowing and over-leveraging are also rising. Moneylife Foundation’s counselling work reveals how seemingly small digital loans can accumulate into unsustainable repayment obligations.The audio explores:• The rapid expansion of credit among Gen Z and young Indians• Why “loan stacking” is becoming a concern• How small digital loans can turn into large household liabilities• The difference between disclosed interest rates and the actual cost of borrowing• Why a borrower’s income alone does not determine loan affordability• What RBI’s digital lending framework addresses — and what it may not• Why credit bureaus need to look beyond defaults to identify financial stress earlier• The crucial shift from disclosure to suitability and affordabilityCredit can undoubtedly create opportunities — from financing education and productive assets to supporting small businesses and gig workers.But speed and accessibility do not automatically make borrowing affordable.The real question is whether India’s credit boom is helping young borrowers build financial security, or simply allowing them to spend tomorrow’s income today.