Key Issues in Banking Sector - Inputs on Root Causes
Dear Friends:
Listed below are the key banking issues as highlighted by you. Kindly review them and if anything is missing, please share inputs.
Otherwise, please help us identify Root Causes for these issues.
We will then conduct a separate discussion on Solutions and put together a whitepaper for the Ministry of Finance to take necessary actions and make Banking more consumer oriented in India.
We look forward to your inputs!
Rajendra Pratap Gupta
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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
Listed below are the key banking issues as highlighted by you. Kindly review them and if anything is missing, please share inputs.
Otherwise, please help us identify Root Causes for these issues.
We will then conduct a separate discussion on Solutions and put together a whitepaper for the Ministry of Finance to take necessary actions and make Banking more consumer oriented in India.
We look forward to your inputs!
Rajendra Pratap Gupta
--------------------------------------------------------------------------------------------------------------------------
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
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View all 158 comments Below 158 comments
Too many perks for the banking staff. The ATMs still running dry and long queues waiting to encash their cheques. Is this the progress made by the Banks in Bharat? more
Apr 02
everything is fine as they are being looked as per banks viewpoint, I suggest like if bank is charging penalty for services then if by chance they are unable to provide services which is their regular function, than a penalty has to be issued on banks for not meeting to the expectations. This way both parties will have a fair share of penalties. As of now we only bear the penalty, bank get by without any penalties. more
Apr 02
The Million Dolor question NOT raised is the "Bad Debts" of several Lacs of Crorers of rupees given to the defaulters without adopting any NORMS but as favor by these Banking Baboo's. I some of the cases the officials who had sanctioned these loans got promoted and now holding positions who are supposed to investigate &/or Prohibit the practices. Factually it is the situation like Thief holds the key of security locked. Even the RBI - instead of disclosing the list of defaulters of Rs. 500/+ Crors/Each defaulter had preferred to give sealed to the Supreme Court. Infusion of Lum=sum money (Rs. 25000 cr to SBI for single year) to the Banks by Govt. is over and above of all these incidents. This is the Public Money and in hand in gloves with fraudsters, this "White Collar Crime" ever flourishing in each and every bank like Syndicated Crime series for decades together. If only 50% of these bad debts is recovered the rate of interest can be paid twice of the existing rate. WHO WILL BAIL THE CAT. Is this forum is capable to raise the ISSUE???? more
Apr 02
How to recover loans from defaulters- and increase interest rate on deposits- I can elaborate this more
Jun 11
(1)customer service (2)internet banking service(3)increasing bad debts-Non Performing Assets (4) Education to the staff (5) present level of age of the staff(6) appointments of Chairman & Managing Director and other Directors in the Banks more
Jun 11
