Thursday, March 16, 2017

German banking major devours aviation market pie

Even as PM Narendra Modi is pushing for reforms in the economic sector, sales proceeds of air tickets to the tune of $16 billion a week are being routed through Deutsche Bank. This happens at a time when nationalised banks are eyeing a big slice of the bourgeoning aviation market pie.

A memorandum forwarded by Public Accounts Committee (PAC) chairman K V Thomas to the RBI says nationalised banks are mute witnesses to the big volume of aviation business being handled by the foreign bank.

To an RTI query about the average weekly turnover of Deutsche Bank, the RBI said it did not have any information. The percentage of handling charges levied by the foreign bank for processing the colossal figure is also not known.

Travel agents had been making cheque payments to International Air Transport Association (IATA) till 2016. The enormity of the transaction with Deutsche Bank came to light after agents were instructed to make direct payments to the bank last year.
16/03/17 Dhinesh Kallungal/The New Indian Express