Inputs on Solutions to improve Banking Sector

Friends:

Below are the key Issues and Root Causes for the current state of Banking in India. Kindly review and help identify specific solutions which will improve Banking in India more citizen oriented and transparent.

We look forward to your inputs!

Banking Sector – Key Root Causes

1. The banking sector is an important pillar of the Indian economy
2. A one page bank document has 2 pages of terms and conditions
3. The legal language used in T & Cs are not understandable by general public
4. Continuous bank holidays for more than 2 days disrupt the entire business financial system
5. Nationalised banks do not concentrate too much on providing a good customer experience
6. Public banks still need to do a lot to come up to the standards of private banks
7. Internet banking is still evolving in India
8. Regulations are so many that even the employees don’t know them completely
9. No one employee is given enough authority to complete an entire financial task due to security reasons
10. Banks make more profits through mutual funds and insurances and hence they are pushed to customers
11. Banking is run as a business where profit and loss matter a lot
12. The security settings and firewalls of internet banking are not strong enough and are hence prone to hacking
13. Banks try to minimize bad debts while giving loans and hence scrutinize the applicants closely
14. The employee-customer ratio in public banks is poor
15. Employees of public sector banks are not very comfortable with technology
16. There is a big competition between the private and public sector banks to get new customers on board.

Issues in the Banking Sector

1. There is a lot of political interference in the banking sector
2. There is a lack of transparency
3. Terms and conditions of banking services are tough to understand
4. Continuous banking holidays for more than 2 years creates a lot of hassles
5. Customer service of the nationalised banks is very bad
6. Banking regulations are very rigid for common man
7. Public sector banks are not systematic & public friendly
8. Internet banking is still not at the international levels
9. Employees don’t know the rules fully; keep passing the buck
10. Many times a customer is sent from window to window to get the work done
11. Banks are more interested in selling mutual funds and insurance rather than providing service
12. Banks are quick to change rates of interest if they stand to gain but slow to react when they have to reduce rates
13. There is no transparency in Foreign Exchange Transactions and banks fleece customers wherever possible
14. Customer accounts under the title of internet banking are targeted by hackers
15. ATM transactions are charged after a certain number of times
16. Most of the ATM does not have the facility for cash/ cheque deposit
17. Grievance redressal is weak
18. Banks impose charges without giving any notice
19. The banking staff is rude with the customers
20. Interest rates on loans and credit cards are too high
21. Process of granting a loan is tedious and a lot of paperwork is involved more