Key Issues in Banking Sector - Inputs on Root Causes
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