Consumer Grievances in Banking - Root Causes

WHY RBI GOVERNOR RAGHURAM RAJAN PLAYING DOUBLE STANDARD GAME;FOR PRIVATE BANK MANAGING DIRECTOR AND CHAIRMAN RETIREMENT AGE 70 WHEREAS PSU BANK CHIEFS RETIREMENT IS 60;PERHAPS HE INTRODUCED AMERICAN SYSTEM HERE,BUT HAS HE EVER STUDY THE SOCIO-ECONOMIC CONDITION OF INDIAN PEOPLE:IS HE GOVERNMENT OR HE FOLLOWED THE FOOT STEPS OF HIS PREDECESSOR C.RANGRAJAN: NOW IT IS UP TO GOVERNMENT TO DECIDE AND ACT ACCORDINGLY: FEW WORDS ABOUT PRADHAN MANTRI DHAN JAN YOJANA AND COMMENT ON REPORT OF RESERVE BANK OF INDIA;PLEASE COMMENT:KOLKATA, SEPT 19: The Reserve Bank today warned the banks to be more careful while opening accounts under the Jan Dhan Yojana, saying that a single individual could open multiple accounts in the lure of Rs. 1 lakh insurance cover. “There are some caveats when the banks are implementing the financial inclusion scheme under the recently launched Jan Dhan programme,” RBI Executive Director P Vijay Bhaskar said at a CII seminar here today. He said people could open accounts in different banks using different identity documents like PAN card, Aadhar among others in the lure of getting insurance cover of Rs. 1 lakh from all the banks. The banks should have a single information sharing system by which this possible misuse could be stopped. Another possible threat was ‘smurfing’, the RBI official said. In this case, hawala operators would split the whole amount into several small units beyond the threshold using several bank accounts and send money overseas. The last was ‘money mules’ by which an individual would operate through another person’s bank account. Talking about the north—eastern region, he said the SLBCs and the SLCCs should take steps to improve the credit—deposit ratio of the region as the CD ratio was much lower than the national average. Earlier this week, RBI Governor Raghuram Rajan had cautioned banks on the risks involved in just hunting for numbers with regards to Jan Dhan scheme, asking them not to compromise on core objectives of the programme. “When we roll out the scheme, we have to make sure it does not go off the track. The target is universality, not just speed and numbers,” Rajan had said. THE OTHER DAY C.RANGRAJAN, EX-GOVERNOR, RBI AND EX-GOVERNOR AP AND PM’S ECONOMIC ADVISER TOLD IN THE URBAN CITY PEOPLE WHO’S INCOME PER DAY RS 37.00 ARE NOT COMING UNDER BELOW PROVERTY LINE (BPL) THAT MEANS RICH,TO MY MIND RANGRAJAN A GREAT HIPOCRAT AND FRAUD AND THAT IS REASON WHY INDIA TODAY IS ONE OF THE POOR,FRAUD,SCAB,BRIBE,CHEAT AND CORRUPT NATION.BEING A MAN OF ECONOMICS PERHAPS NOT PROPERLY STUDIED ECONOMICS AND MIGHT HAVE PASSED THE EXAMINATION BY ADOPTING COPY.I AM ASKING ONE SIMPLE QUESTION IF HE IS AN HINDU,WHAT IS THE VALUE OF HIS PROPERTY? I AM NOT ASKING ABOUT HIS SALARY BUT HOW MUCH PENSION HE IS GETTING IF HIS PENSION PER DAY ABOVE RS.37.00 LET HIM RETURN THE BALANCE AND EXTRA MONEY TO GOVERNMENT. SIMILARLY DURING UPA GOVT.THEY EXEMPTED RS 71000 CORE LOAN ON FARMERS AND THERE WAS HUE AND CRY AND CRITICISM OF THE GOVERNMENT BUT THE CRITICS FOR GOT ONE THING THEY CONSTITUTE 75% OF POPULATION AND THEIR CONTRIBUTION TO INDIAN ECONOMIC MORE THAN 80%.NOW THE BANK OFFICERS ASSOCIATION AND BANK EMPLOYEES FEDERATION IN THIER REPORT TOLD MORE THAN RS FOUR LAKH CORES LOAN GIVEN TO FRAUD INDUSTRIES DECLARED NPA AND BAD DEBT FOR THAT WHO ARE RESPONSIBLE (SOME CORRUPT POLITICIANS,BUREAUCRATS,SENIOR BANK OFFICERS STARTING FROM GENERAL MANAGER TO CMD). THE JAN DHAN YOJANA IS A WONDERFUL SCHEME OF NARENDRA BHAI, PROVIDED THE ACCOUNT HOLDER MANAGE AND MAINTAIN THEIR ACCOUNT HONESTLY AND PROPERLY,IF THE ACCOUNT HOLDER MISUSE THE OVER DRAFT OF RS.5000.00 AND FAIL TO REPAY THE LOAN THEN THE PSU BANKS WILL BE SICK AND THE LIFE OF POOR PEOPLE WILL BE MISERABLY.TODAY WHY THE COOPERATIVE MOVEMENT INTRODUCED BY FATHER OF THE NATION MAHATMA GANDHI NOW FAILED THE REASON BEING THE MEMBERS/LOANEES FAILED TO CLEAR THE LOAN UNDER THE ADVISE OF THE CORRUPT OFFICERS.THEREFORE MY SINCERE ADVISE TO ACCOUNT HOLDERS TO MANAGEMENT AND MANTAIN THE ACCOUNT HONESTLY TO GET THE BENEFIT OF BOTH ACCIDENTAL BENEFIT OF RS.1 LAKH AND LIFE INSURANCE OF RS.30000.00.MY REQUEST TO NARENDRA BHAI TOMAKE PROVISION TOCOMPENSATE THE LOASS OF THE BANKS AND FOR HEAVEN SAKE NEVER ENCOURAGE THE FRAUD PRIVATE BANKS IN FUTURE OTHERWISE THERE WILL BE GREAT GAP BETWEEN RICH AND POOR AND POOR WILL SUFFER AND THERE WOULD BE ANY MEANING OF BANK NATIONALISATION DONE BY SMT INDIRA GANDHI IN THE YEAR 1969.FURTHER PLEASE STOP CORRUPTION,BRIBE,CHEATING AND FRAUD IN PUBLIC LIFE,DONOT BE REVENGEFUL RATHER WORK FOR THE DEVELOPMENT INDIA AND LEARN FROM OUR NEIGHBOUR CHINA HOW THEY DEVELOPED. BRAJA BANDHU BEHERA, BUREAU CHIEF: CORPORATE INDIA: BHUBANESWAR MOBILE 9437004660 more  

Pls provide the key Consumer Grievance issues in the Real State sector more  

1. Banks can complain to CIBIL and without reference to the customer , it is taken as GOSPEL truth , without any views of the Customer. 2. Whereas, there are SO MANY VALID complaints against the working of the BANKS, which are not even considered by the Banks, most of the RBI instructions to the Banks in dealing with the Customers are ADVISORY in nature. more  

In addition to the above points I would like to add few more points. Those points will be added from Point No. 18 onwards. Please correct me where required. 1. "Too many telemarketing calls" - Its because of selling the data by 3rd parties to these banks which is a serious issue. 2. "No transparency in rules" - No fear of law. They know after paying certain amount in terms of security will be enough for bail and case will run years and years. 3. "Bank try to skip accountability of reveling all the facts specially facts that may impact customer" - No threat of law. From the beginning, I am suggesting to start single identity system to be followed. A single identity number to be provided to all the citizens and firms with complete data bank. In case of any frauds, issues, disputes of such type may be observed and find by citizens so that they may be aware with the terms & conditions. Banks, Insurance and companies are two sectors where terms & conditions and other financial details impacted a lot. Through a single identity number it can be tracked that what are the issues and how many times it was done by the bank to the customers through that database. 4. "Grievances are not addressed properly" - No fear of law. They know after paying certain amount in terms of security will be enough for bail and case will run years and years. Because of no single identity they can avoid the same from different branches as there is no data of banks for the same issues in courts. 5. "Consumers are treated with negativity" - No fear of law. They know after paying certain amount in terms of security will be enough for bail and case will run years and years. No data available in the courts by the same bank with different branches. 6. "Small loan takers are harassed and asked for bribes" - No fear of law. They know after paying certain amount in terms of security will be enough for bail and case will run years and years. 7. "Hidden charges in transactions, especially loans" - No fear of law. No single database. 8. "Lot of banks and finance institutions force consumers to buy an additional product along with the loan" - Options are available I didn't observe force by Banks. It might be with the persons who don't have proper documents and they have only choice with one bank from where he had taken load through bribe. 9. "In case of a dispute, banks always ask to pay up first, else they threaten to complain to CIBIL" - Weak law frame. It should be changed. Penalty for defaulters and approvers also be punished within a year instead of attending courts for decades. 10. "Banks engage third party people, often goons, to do recoveries, despite the supreme court warning against it" - Govt body must be there for recovery and not goons. Generally loans were given by the bank against some property/mortgage/vehicle etc. It can be recovered unless no bribe was given to the approver before loan for increasing the value and act accordingly. 11. "Over-promises made by agents while selling insurance, mutual funds etc." - No fear of law. They know after certain years they will left the company and nobody will track them. No identity number attached with the incident so tracking is not easy. Case will be pending for decades so victim didn't take any action / back stepped. 12. "Rate of interest for loan, as well as for fixed deposits are not publicly displayed at all banks" - RBI must restrict banks for display. 13. "Bank call centres are unable to solve queries a lot of times" - Lack of communication and details of the bank. 14. "Big difference in level of customer service between public and private sector bank" - Following entrance exam's pattern of Britishers before the freedom. New recruitments to be done for the candidates on the basis of his/her capabilities and computer knowledge instead of answering for Cos Theta and when Iraq attacked Iran. Its such a stupid system. Candidature must be evaluated with its capabilities not by his answers on history and geography. 15. "There is very little transparency on the foreign exchange rate used by banks" - RBI should restrict banks for display. 16. "Heavy penalties are charged even to minor defaulters" - Slabbing should be there which should be governed by RBI body. 17. "Banks charge a blanket fee on SMS instead of charging for the actual number of SMSs sent, in spite of the RBI guidelines" - I agree with the banks. Its not much amount. But for other facilities it should be restricted. 18. "Fake bank accounts" - A huge issues faced by many citizens and police. Police and investigative agencies are unable to trace sometimes. Internet fraud are running successfully by these fake bank accounts. Timely scrutiny of bank accounts must be checked. Identity number which I told earlier may solve this issue. 19. "Citizens not benefitted with Govt. schemes through Banks"- PMRY and other govt schemes sanctioned loans to citizens. The loans were sanctioned to those persons only who are ready to pay bribe to bank officials for disbursement, have setting in the bank or have connections with political leaders only. Out of 100 only approx 5-10% loan received to needy person. 20. "Time consumed in the banks" - All are complaining govt banks but we need to see the condition of their infrastructure and number of counters available in govt/nationalized banks. It should be reframed as per the requirement. Nobody involved him/herself to identify the issues in the banks. Usually in govt banks illiterate person visits and how they behave or understand the schemes of the banks which everybody must have to see. Only raising fingers on the govt banking employees is not right what I feel. more  

Attitudinal change is very much needed in the employees of public sector banks,particularly at middle and junior levels. They must understand that serving a customer is not a favour but a part of duty.This needs training - which has to be imparted through training programs and mainly through on the job supervision by Seniors. Regarding the point on insurance, banks should not enter this business because I think it is not atall in sync with banking. Regards. SK SAH On Friday, 12 September 2014 12:13 PM, Rajendra Pratap Gupta wrote: more