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  • Category: Miscellaneous

    Banks for masses or for only classes?

    There is this great Bank called ICICI Bank, and another two great Banks called Axis Bank and HDFC . If you go down by even just one rupee on the monthly balance, which is different for urban or metro branches and for semi-urban or rural brances, you will be fined. The fine, I now understand, goes up to around Rs.300/-.

    Banks any for serving the common man. They are not there to loot the customers. When I questioned the logic of a huge bank balance and fine in case the balance goes down by even one rupee, the Manager of HDFC Bank proudly claimed that there are several services they offer, that cannot be matched by any other bank.

    That argument, to use some dignified terminology in this forum, to say the least, was absolutely ridiculous. Their charges are so high, even for the ATM services per annum. They just give you an accident insurance, but for which, each of the aforesaid banks simply loot you and me.

    The Federal Bank for example, has a superb service, where in with just a minimum balance of just Rs.1000, one can use the ATM card in any ATM of any bank, any number of times, subject to Rs.20,000 every day. This is one example of customer delight. The Canara Bank allows unlimited withdrawals in their branch ATMs.

    These are examples that should be emulated by the rich banks. They should either come down from their ivory towers and start serving the common man. They cannot loot customers in the name of services.

    Of course, Members, who would be customers in many banks, will do well, to totally shun these imperial banks and go to Federal Bank, Karur Vysya Bank and such other banks, where the service is world-class and the Net banking, so advanced in terms of user friendliness and service, all at a much cheaper cost.
  • #638401
    There was a time when banks made a lot of profit and did not bother for the mean tricks to make money through the ignorance of the customers.

    Today there is tough competitions between the banks and due to the staggering NPA issues banks are also in a tight corner.

    Time to time they will devise small ways with high volume to make money. For example SMS service. Banks will send us SMS for the transactions so that we are updated and know our balance and need not to go to ATM or bank branch to confirm these transactions. For this service, banks are charging about Rs 20 per quarter which comes to about Rs 80 per year. Banks are charging another Rs 150-200 per year towardsio debit card annual fee.

    The penalty towards not maintaining minimum balance in the account is also a step in that direction.

    For a customer having 2-3 accounts in various banks, the total annual load comes to about Rs 1000 which is pretty good for banks in making their balance sheets presentable.

    Thoughts exchanged is knowledge gained.

  • #638407
    The State Bank of India recently made more money by collecting penalty than their business activities. After demonetization and the Non Performing Assets came to light, the banks are finding ways to fleece the customers. Go to a bank and ask them for the account statement, you will be informed how much every page of the statement will cost you. It was not the case before. The banks are running with the money deposited by the customers. Petitions were sent to the RBI and the Finance Ministry also. No action so far. It is the duty of the bank to give the customer the interest paid certificate and TDS certificate to enable the customer to file the Income Tax return. Some banks are flatly refusing to give them free of cost. With all this nuisance, I had applied to the Axis Bank to close my account in January this year which is still pending. Meanwhile, they are deducting for all sorts of services they are supposed to be providing.
    " Be Good and Do Good "

  • #638426
    (Response Part I)

    It was for making banking for classes that the nationalisation of banks was done.
    For about three decades from then the banking was for the masses and banking became more inclusive and reached the innermost village and remote corners of the country. It helped the entrepreneurial youth, women, vulnerable classes , low salaried middle class people and even students were benefited.. It also helped our economy too.

    It cannot be denied that in the course something else also happened.Political interference started in banking activities and those segments who were treated as vote bank got more benefits. They treated these loans as their rightful doles by the government. Huge numbers of small amount loans became NPAs and had to be written off.

    However after the start of nineties things went to a different situation that again 'classes' developed and the new classes included politically powerful and the economically powerful.

    (see the following post for part II response)

  • #638427
    (Response Part II)

    Starting from the nineties, there was continuous planted propaganda against nationalised banks painting them as inefficient and loss making. There were cries to privatise them. New private banks with heavy initial capital investment by shares started functioning adopting new technology, under new economic policy. So the nationalised banks became victims as the new generation banks attracted rich individuals and large business and corporate clients. They could do better international banking and innovate banking products and services which got them the tech savvy neo-rich middle class and youth also.

    Thus there came a new set of class banking.

    The nationalised banks were then put into pressure for making profit and work like the new generation banks. The only way then was to turn again to the big business and corporate. Many of the clients exploited the helpless situation of the nationalised banks and even cheated them by defaulting knowing the limitations of public sector banks..

    As the public and media always pointed and compared the nationalised banks with the new generation private banks, the old banks had to increase their charges to gain profit. But they do not have the same freedom of operation like the new generation banks. That is the cause and result of present day banking situation.

    It will be still worse as the re-privatisation of these banks is going to happen gradually.

  • #638457
    Banks have two responsibility here.One for working at the instance of government and other way is to make their profit base more worthy. For that the banks are constantly giving loans to big business houses with the hope that their credit worthiness would increase. But most of the big loans given by many banks are proving to be stage managed with the connivance of field officers and managers and thus over the period of time the borrower turns pauper and the bank brands the money as bad and doubtful debts. So banks are the class people and from the mass they wont even spare one rupee.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #638462
    I accept that the banks are trying to make as much money as possible from the services they are providing from a common man. At the same time they are giving huge loans to industrialists and not able to get them back. They are becoming their NPAsand they are trying to get those losses by increasing these charges. People who takes loans are enjoying. People who keep money in banks are suffering. They have to pay service charges for all operations.
    These days banks are not for a common man. They are for rich people only. There are some banks which are more reasonable. But unfortunately going to those banks and opening an account is becoming difficult. HDFC bank is performing well and making profits. But the charges they are taking for all services are very high. I don't understand why the RBI is not giving a common policy to all the Banks.

    always confident

  • #638488
    The banks of the masses were looted by few elite class white collared criminals who masterminded multi-crore scams. The biggest collateral damage of this is the NPA that every common man who uses the banks has to suffer. It is by means of charges for everything you can think of.
    Ironically, the same private banks keep calling repeatedly promising you new cards, new hassle-free accounts, and some people find that they are hassled once the accounts are opened.
    We once had the misfortune of applying for an add-on card, the courier could not be collected by us, so we ended up paying for the courier charge and the add-on card. After a couple of long phone calls, we could not get the money because it was deducted from the account. We ended up closing that account.

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