1,900 banks out of the loop for UK study visa

Britain on Tuesday published a list of nearly 1,900 banks in India, most of them cooperative, whose financial statements will not be accepted for student visa purposes, a move that is set to affect thousands of Indian students wanting to study there.
The new list has just 85 Indian banks whose statements will be accepted.

Education consultants from India, however, have welcomed the move saying it will give genuine students a fair chance, and, to a great extent, will be successful in cracking the reported business of illegal immigration by agents in India.

Suchitra Surve, director, Growth Centre, said, “This has been the case for quite some time now. We have been telling students to avoid showing cooperative bank accounts and to be sure of the authenticity of their papers. Parents are generally not aware of the drawbacks of showing accounts in cooperative banks. But if parents and students are made aware of such criteria, they do shift their money to an accepted bank.”

“UK has been among the top three destinations for studying abroad. I don’t think this move will show any significant rise or drop in the number of students going there for higher studies,” she added.

According to information provided by British Council, in 2010, there were about 51,000 Indian students studying in the UK.
Mohit Gambhir, an expert consultant for higher education in the UK, said, “This is a welcome move. It shouldn’t hurt genuine students… There will probably be some control over agents’ business of sending X person to the UK with a specific charge.”   

UK bans 1,900 Indian banks for student visa“The business of illegal immigration to the UK is on at a high level. In this, the agent has tie-ups with bank managers of certain branches. After an under-the-table transaction between the manager and agent, the required amount of money is shown in an account, which is then named after the students or parents. However, after getting the visa, the money is removed from the account,” another consultant for higher education in the UK, who did not wished to be named, said.

“There have been cases when UK authorities have tried to verify a student’s finance bank by contacting its head office in India. The staff here have no clue about the matter either. While in metro cities, consultants and counsellors are just approached for guidance on good universities and other facilities, in tier two and tier three cities, the direct question is, ‘How much will you charge to send me to the UK?’”

The move is a setback to the credibility of cooperative banks in India. “We will discuss the issue when all cooperative banks’ chiefs meet,” said Vasantrao More, chairman of Jalgaon District Central Cooperative Bank.

A Maharashtra government official said, “The scam in Maharashtra State Cooperative Bank, which rocked the state in May 2011, may have lead to this decision. There are no stringent laws for cooperative banks, so, unfortunately, Indian students will have to feel the pinch.”

A NABARD report had exposed many irregularities in the MSCB. The report had stated that the bank had modified its balance sheet and showed a profit of Rs1,778 lakh instead of a loss of Rs1,014 lakh.