Some Useful Financial Information and Calculators For Planning Your Loans and Pensions in India!

The following gives some useful links that may help people from Indian who are reasonably tech savvy to quickly ascertain their financial standings and to take informed decisions on availing home loans, personal loans, car loans, insurance and also make informed decisions to invest their money safely as per the services offered by various Indian banks and financial institutions. 

Whether it is saving money in bank deposits or availing loans from the banks, individual financial management needs to be done with due diligence. In other words, careless financial planning could bring great miseries!

Some time ago, I had written about the online banking service integrator portal, the bankbazaar.com which is an emerging IT company in India which helps people to take well informed decisions with regard to their banking needs. This blog is in continuation to that and may contain some redundant information.

Click on the following images to reach to the relevant pages of the best on line banking comparison and information site, bankbazaar.com:

Reviews and Comparison of Indian Banks FD interest rates!

Compare, Select and Apply for the Best Indian Credit Card!

Are you looking for some bank loans in India? But before you do that check your eligibility and resources by taking help from the financial calculators given in this page. For more financial online calculators visit this site!

For various purposes like registering some one for online money transfer etc, one occassionally needs to know the Indian Financial System Code (IFSC) of the bank branches in India. You can get it from this page! 

The bankbazaar portal also facilitates one to get appropriate life, health or car insurance from the various insurance companies in India.

Incidentally the bankbazaar company is in the expansion mode and they are in the look out for more people. Interested people with the right aptitude can lookout for their career options here!

Why I prefer ICICI bank for Online Banking rather than the SBI ?

For the last few years, I seldom need to go to the bank as an individual retail banking customer. My salary comes to one bank and I spend or save it using bank transactions. 

Some years ago, visiting the bank and making personal rapport with the bank officials was some thing which people like us could not have avoided. If the bank officials who manned the front desks were annoyed with your face for some reason, you were bound to have some tensions due to the problems some of them could have created for you.

Not that all banking officials were bad. Some of the officials used to be friendly and helping. But there always existed a few who took some occasional sadistic pleasure in creating problems for their customers.

At times they used to come up with rules that you never knew as existing only to enhance your tensions and headache. No doubt, banks had become a necessary evil of the society and it was the era of the nationalized banks!

I remember a case where I deposited a cheque from one outstation bank branch to my account in another bank. It was equivalent to a bank transfer. The money got debited from one bank but never reached the destination branch. I remember visiting the branch and meeting the officials for nearly half an year for getting my money that got 'lost' in the banking procedures!

All such banking nightmares are forgotten things of the past. Thanks to the internet technology and the advent of the private banks which got out of the ridiculous procedures and customer unfriendly culture of the public sector banks.

It was the ICICI bank, if I remember correctly, which brought innovative banking culture to India for the first time. They brought advanced computerization and air conditioned bank branches in all nooks and corners of India for the first time. 

The visionary leaders of this bank also realized the risks of customers losing faith in banking. So they incorporated 'the six sigma' practices of quality mandatory in their banking system practices. It was not an eye wash. As far as I know, the management of this bank was serious and honest about it.

That means the compulsory evolution of a banking process where errors are not acceptable. Customer complaints are taken up seriously and settled within a short time. The bank employees were not allowed to be complacent with customer complaints as used to be the practice elsewhere in other banks.

For maintaining the computerized banking, this new private bank also went in for the best available banking software and also went in for the best available manpower to handle the complex situations efficiently. More importantly, they ensured to have a more or less efficient work force who were homogeneously competent to handle the work systems at all levels. The efforts paid. Soon ICICI bank became the No.1 private bank in India and also the No.2 among all banks. Nothing surprising that its first CMD Mr. K.V.Kamath and its second CMD Mrs Chanda Kochhar have become world icons in banking! It is noteworthy that no other private bank in India could grow to the extent of this bank though all of them started almost at the same time with same rules.

I have been an Individual customer of the State Bank of India for the last over three decades. I have seen the culture of this bank earlier and the somewhat changed culture of this biggest nationalized bank of India in the later years after the emergence of the private bank culture. 

 

Now I am a customer of both SBI and the ICICI. The new banking game has almost reduced the need of me going personally to the banks. I am almost relieved of the tensions of the past.

If I make a comparison of these two banks from my personal experiences, I would say ICICI bank is better as far as internet banking is concerned. Of late SBI has also improved their systems, but I am not so confident about their ability to sort out any difficulties that one might encounter. If you do not land into trouble, well and good. But if you face some problems, ICICI would be in a better position to solve it because of their Six Sigma quality policy. The ability of SBI to solve the problem actually depends on the individual officer or staff with whom you have to interact.

The security aspects of the internet banking might be more or less similar in most of the banks now due to the intervention of the mandatory supervisory systems. Yet, the internal systems that one may have to encounter while doing internet banking is different from bank to bank.

Fortunately, I have not faced any problems with internet banking so far from either of these two big banks. Yet, I think, the ICICI system is superior and more reliable. That is due to the following:

In the ICICI bank, it is not essential to keep changing your password quite often, a botheration for people who cannot remember many passwords. Instead they rely on advanced systems like the use of the debit card with random grid numbers. Their systems also take note of the usual IP addresses of the computers which you normally use. Their system use one time password (OTP) send through your registered mobile phone occasionally when there is a change in your normal use pattern. In case of some transaction errors, they set it right without you going after them within a few days. If you lodge a complaint online, it is invariably addressed.

But with the SBI internet banking system you cannot be so sure. Their systems appear vulnerable and prone to mistakes or errors. While transacting, they always rely on OTP send to your mobile. To make the OTP delivery by SMS doubly sure, they send it from two central servers. But, I have faced problems when the OTP never reaching me for more than half an hour only to compel me to abort the transaction. When you attempt a transaction at a later time, you might get OTP SMS pertaining to your aborted attempt, making your transaction failing for entering a wrong password. You get totally confused. To add up the complications, the SBI staff in most branches are mostly ignorant or incompetent fellows who would be of no use to solve your problems. 

It is a wise decision to avoid SBI when it comes to online banking transactions. Of course, you may view your account and other such mundane things. 

A final word about mobile internet banking using android phones. I have not yet got the courage to do it. I have preferred to avoid it. Perhaps it is a good technology. Perhaps your mobile set and the banking app that you have downloaded in it from your bank could be of advanced features. But mobile phone and android systems are prone to physical thefts coupled with digital hacking attacks. As I am not a person who would use money transactions on the move, it is not for me any way. At least for the time being!

To sum up, this is my opinion. ICICI bank is more of a system oriented bank while SBI is more of a staff oriented bank. In the former, the systems make it perform better while in the latter the performance depends on their persons. For those who do not want to make banking a complicated part of life, the former is the best choice. 

A last word of caution. If possible avoid taking loans or using the credit cards. If at all these are to be used, use them after knowing all the rules of the game and following the rules. If you are sure of not becoming a defaulter and like to do things fully as per the rules, ICICI would be a better option because they provide the better banking service in that case. Better banking service does not mean that they will help you to come out of your insolvency or your defaults!

Bankbazaar: The Best Online Site for Making Well Informed Decisions on Bank Loans, Bank Deposits and Insurance in India

Post liberalization and with the prolific growth of digital information technology (IT) and IT-enabled services, India has become a hot spot of both software companies and companies that offer IT enabled services such as banking, insurance, data processing, data storage, online trading, etc.

The companies in this sector provided millions of job opportunities with relatively good salaries to the young men and women of India who have the essential qualifications for getting employment in these specialized field of work.

The IT related business potential has been something which the old timers just could not dream just a couple of decades ago. The business models that the youngsters devised have created great wealth many times than the conventional business models. 

Being an old timer myself, I have been an awe admirer of the potential of computer software and the internet in raking up large scale economic activities and creating wealth for the individuals and the corporations.

A stage has come now that the computer systems have become an inseparable part of all human beings who have crossed over the threshold of basic development. 

The higher incomes that the IT and IT-enabled business have provided enhanced aspirations of young Indians for better housing, comforts, leisure and better services from the service providers. In turn it has been facilitating more avenues for entrepreneurs to come up with revolutionary ideas for providing better services to the customers.

Banks have been one of the first business sectors in India to shed the old style working replaced with computerization. In the retail banking, it has now become almost paperless. Several Indian banks have opted for advanced IT infrastructure and systems. 

The IT savvy population of India can now do almost all their retail banking requirements without they ever visiting the banks. They are now in a position to do it from the PC terminals or their mobile phones without leaving their comfort zones of the office, home or even while on the move. 

They could now see their bank accounts, buy many goods and services and pay online, transfer money to others, make recurring deposits (RD), fixed deposits (FD), know their income tax dues, file IT returns, pay for the services, etc.

But in the mean time, the banks have also become more flexible with every bank offering several options for each service. While outwardly all banking services looked similar, in reality they have become dissimilar. The interest that you actually get for your deposits, the interest rates and equated monthly installments that is applicable for your loans, etc are all different in different banks.

Imagine the difficulty that you face to discuss these things with each every bank before you can finally take a decision. The bank officials to whom you might talk could even be ignorant with regard to the various rules as applicable that you could get highly confused or misguided.

This complexity has initiated the thought process in a group of young and experienced engineers in the IT field that they have evolved a business model that provides a win-win situation for the individuals, the banks and themselves.

And this is the fast growing IT-enabled business called the Bankbazzar (literally meaning the market place of the banks) which got into this unique business sometime in 2008. [Read about Bankbazaar in this Wikipedia article] It was founded by a group of young and experienced Indian engineers [Read about some of them here]

Bankbazaar is wholly for the Indian people as of now. Let us see what all services this dotcom company provides to the customers in India:

It facilitate you to compare the HOME LOAN offers of various banks and finalize the best deal. 

Bankbazaar is the best place for you to compare the various CAR LOAN options from various Indian banks and zero in to the best one suitable for you.

And some of you may need a personal loan for some immediate needs. Banks usually charge higher interest rates for personal loans and they all have different interest rates, EMIs, processing charges, etc. BANKBAZAAR PERSONAL LOAN page would facilitate one to chose the best offer and finalize it. 

Bankbazaar website has many other useful features such a EMI calculators with special regard to the Indian banks, refinance calculators, Interest calculators, etc. One can access the various ONLINE CALCULATORS of this facilitating company for taking best informed decisions. 

It also provides those interested in investments to read informative articles about finance and investments in India.

One can also chose to get a suitable Credit Card from those banks in India that offer such a facility. 

In case you have surplus money, you can invest it safely in FDs of banks. But now-a-days different banks have different schemes and interest rates. Bankbazaar allows one to select the best deposit scheme and apply online for making the FIXED DEPOSITS. 

Bankbazaar also provides you facilities to decide the best suited LIFE INSURANCE from the best company of your choice.

It is not a bad idea to do a bit research before you take loans, put money in FDs or to take an insurance policy.

Finally, a word of caution. Take a loan only when it is unavoidable and when you have the resources and income to pay the EMIs.

Never take a loan which has an EMI which eats out the major portion of your monthly income. 

    

Arthakranti Pratishthan: Could it be Possible for PM Narendra Modi to Consider its Revolutionary Ideas for Tax Reforms?

For long I was toying with the the idea of better alternatives to regressive and inefficient taxation laws coupled with many other financial loop holes that have made India a nation of shame regardless of her high potentials in various fronts. 

I had earlier shared two ideas that came to my mind in this context.

One was about bank ATMs of this country. ATMs are presently used as instruments that helps in perpetuating corruption while it could well be used to control corruption.

Then I wrote about my thoughts on the so-called transaction tax that could effectively replace the present income tax.

Yesterday my daughter from Delhi, shared me a long article on the efforts made by a Non Governmental Organization (NGO) formed by a group of professionals at Pune, named the Arthakranti Pratishthan which has been doing pioneering efforts to bring about radical changes in this context for the past few years.

This organization of professionally well informed intellectuals like Chartered Accountants, engineers, etc have done their independent analysis about the economic ills that plague India and has come out with a seemingly simple, but extremely effective proposal for the government of India to consider for implementation.

The original idea was proposed by one Mr.Arun Bokil who is one of the founder members of Arthakranti.

Here are some news that the media covered on this proposal in the recent past:

One news reported that while the Congress VP Rahul Gandhi rejected the idea, BJP leaders such as Mr Subramanya Swamy favored it. 

Another reported it as some steps to rejuvenate our economy.

I have studied their proposal. I fully endorse it.

It is also reliably learnt that the new visionary PM of India-Narendra Modiji- has listened patiently to Mr Arum Bokil for about two hours to understand the concept and its finer details and is in favor of the idea.

Those who have not known about it I would suggest that they should have a look at this great 5-point proposal that is given in the website of Arthakranti.  Let us examine the pros and cons of these five suggestions:

The first step as suggested involves in removing all kinds of direct taxes in the country as it exists now. There are some 56 odd taxes in the country imposed by the central and state governments including income tax, excise, service tax, value added tax (VAT), etc. All these are to be scrapped, except perhaps the customs duties or import duties which might be required to work as an international trade balancing mechanism. When this is done all commodities and services in India would immediately become cheaper by 32% to 55%. All income tax payers would find their incomes rise by 5-30 % in an year. The government apparently would seem to loss some thing like Rs.16000 billion. But it is not the end of it. Let us see further.

The second step is introduction of what is known as the Transaction Tax (TT). A total of say, 2% would be deducted from any amount received in any bank account. If any one receives Rs.100 in his bank account, Rs 2 would be immediately deducted by the  bank and this in turn would be divided in some acceptable ratio to be remitted to the central government, state government, local government and say the bank concerned. Let us say 0.8% to the Central government, 0.6 % to the state government concerned, 0.4 % to the local government (municipality, city corporation etc) and 0.2 % to the bank concerned. If you get Rs 100000 per year as salary, you give 2% of it as your TT. That is Rs.2000/-. But you spend the money by giving it to your shop keepers and others for goods and services. So those who received the amount first from you also pay Rs.2000/- to the exchequer. If the same money change hand 6 times in an year this way, the government gets Rs 12000/- The more the transactions, the more the government gets. Presently, the total Banking transactions in India is to the tune of Rs.800000 billion. 2% of it is Rs16000 billion which is the same as the present gross tax collection or budget of the government of India. But this is just only a fraction of the total money transactions in India due to the existence of the parallel economy which transacts money outside the banking system. Again government can take steps to enhance more economic activities and money transactions which would give more money to its coffers as TT. It is so feels, it could either reduce or increase the TT percentage marginally as per requirement and situation.

Thus, TT in place of the existing taxes are not going to affect the government treasury in any way. Again prices of goods and services have drastically reduced which enhances the money transactions.

The third step proposed is the withdrawal of all high denomination currency notes from circulation. Our banks and ATMs will now give cash to any one in 5/10/20/50 rupee notes or coins only. 100/500/1000/5000 or higher denomination currencies would no more be valid tender. All people who get monthly salaries above say Rs 5000/- would get it through their bank accounts. People would not be allowed to carry cash not more than Rs.5000/- at a time. All transactions above the specified limit of say Rs.5000 would be through debit cards/cheques etc. If you buy even grocery worth more than Rs.5000 that has to be paid through your debit card. You only pay cash payments to your vegetable and fruit vendor. You may also pay cash to your local taxi driver, hair dresser, daily wager etc. Even the local wholesale vendor has to accept either cheque or debit/credit card. This way all cash hoarded as black money would either come to accounted money or vanish as useless. India's corruption avenues would dry up. There will not be any theft of cash from homes. Neither would there be kidnappings for ransom money. Even our political spending would now become properly accounted and the election commission would no more be able to catch huge cash in transit. Even for those who prefer to do adopt cash transactions would not be so easily able to do it because they have to carry big sacks and trunks to carry the lower denomination currency notes. This step would also enhance the banking transactions immediately.

The limited cash transactions that are legally allowed would not be in the purview of the TT.

The above mentioned steps are not difficult to implement if the central government is determined to do it. Of course those who are benefited by black money would naturally oppose it. 

But if you analyze it properly, the system would be of great benefit to one and all in the long run. It would make India a role model in the whole of this world. 

It would help the majority of below poverty population to come out of their poverty and illiteracy. People would gladly give TT as they no longer feel the pinch of government interference in their lives. Our businesses will flourish without the fear of the tax officials who are notorious for their whims in interpreting the tax laws to their advantage. 

The government no longer would need to have a large tax collection organization which eats half of the money collected for their own salaries and perks.

Tax return filing and the many fold problems the people face including the harassment out of it would all be things of the past. 

Government would get more time to think of development rather than tax collection and prosecutions. 

It is a great thing if it happens.

But if past experience is any indication, the so called tax mandarins are likely to oppose any such revolutionary ideas for obvious reasons. Such an idea would end their decades old grip over the system of administration in vogue. So all those officials and staff connected with the 'collector' system would vehemently oppose such a move to make things easier for every one. Besides, all those who have been taking benefits of tax evasion and generation of black monies would also oppose such moves.

It definitely needs the intervention of a strong political visionary who is strong enough to push the right things for the overall benefit of the nation. For many years we have been lacking such a leadership.

But now things seems to be no more like the past. I think our new PM is the only leader who could perhaps over come the obstacles to implement such great ideas.

Rules and Regulations: It Could Trap Even those who Made it (thoughtlessly)!

Yesterday, I got a message on my mobile phone which was sent from an automatic short message service (SMS) facility of my bank. It reads as follows:

"Dear customer, RBI's KYC norms require Banks to update customer data periodically. To update records we request you to visit your nearest ICICI bank branch with latest photograph, original and self attested copies of identity and address proof" 

When I got it, the immediate  response which came into my mind was some thing that is unprintable. I cursed the government, the Reserve Bank of India (RBI), my bank and all those fellows who think that they are above the people who could keep on troubling the people every now and then for all kinds of things that they think as right.

But today I felt a bit relieved after reading a news item which appeared in the Economic Times. Given below is the clipping:

The news gives the story of the ex-Reserve Bank of India governor, Mr.D Subharao facing problems in opening a bank account in his home town-Hyderabad- after he moved to that place after his retirement. Mr Subharao faced problems in producing a suitable address proof of his current residence to the bank which is mandatory as per the KYC rules of the RBI. 

The news further adds that it was Mr Subharao who was instrumental in making this mandatory rule for the banks to follow when he was the RBI governor. 

Perhaps he never imagined that such rules could make irritations for him when he is no more in power! 

Perhaps he never imagined the difficulties the common people of India would face with such rules which are made with no future thoughts! 

Any way the present RBI governor, Mr.Raghuram Rajan has opined that it is a shame that many in India are failing to get bank accounts due to the bureaucratic bottlenecks! I am not sure how is he going to make the same constricted bottlenecks expanded! 

Why do we need banks? Why do we need an RBI which keep making such idiotic rules every now and then does like this? 

Why do we need a government and the people's representatives who are so insensible to the problems of the people and do not have the sensitivity and the powers to intervene when some of the incompetent government employees make rules and regulations without any forethought? 

These are the common feelings of the people of India when they face such things. Indian authorities keep making such rules and regulations in the pretext of administrative controls without making any efforts to study the consequences and without making any infrastructural facilities for effective implementation of their rules!

It would not have caused much irritation to me had our banks operated the way they used in the past. In the past, I used to bank with a bank branch and the officers and the staff used to know me as a customer by face as I used to be a visitor to the bank for all my banking needs. I got my bank account because some other valued customer who knew me introduced me to the bank and the bank (means the officers of the bank) later got accustomed to me and my financial and other status on account of my dealings with the bank as a customer. They knew how to value a valued customer!

With the advent of computers and computerized banking services, knowing the customer by face became a non essential thing for the bankers. Passwords and alpha numeric identity (ID) words became the keys for banking transactions. Ordinary individual customers became relieved to a great extent as it was not required to go to the bank for most of the transactions. It was indeed a good progress that the banking sector was making so far.

Then came the era of the idiotic ideas in the banking sector! Some were good and essential while many were foolish and uncalled for!

One of those foolish ideas was this KYC! Now the banks were required to go back to the old system in a round about manner by introducing what is known as 'Know-Your-Customer' (KYC) system. 

What a ridiculous thing? The fundamental of banking service is that they admit a customer to transact with them only when they know the customer. How is it that the banks do not know their customers? In reality, in earlier days, the banks , the post offices and the educational institutions were the original authorities who knew a person rightly and who could vouch for sure about a person's good credentials. These very same institutions could certify the identity and address of any citizen! And that was very logical and reasonable!

Obviously, the rules and regulations for KYC were introduced by some one who did not know much about retail banking. 

It is now understood that it was introduced by an ex- RBI governor. It is common knowledge that RBI governors are political appointees and they need not have any previous experiences in banking! So, it is quite likely that such persons with their immense powers could force any idea on the system even if knowledgeable people advice them otherwise. They could proceed to implement rules and regulations the way they think as right!

Now what are the requirements of this new KYC norms that the banks have to ensure? The bank officers and staff have to get another form filled in and signed by the customers and get some documentary evidences as proofs of their identity and address.

People who fail to give this would not be allowed as customers of the bank even when they have been a valuable customer for the bank for years!

Ridiculous ? Isn't it? 

Only foolish people could make such rules and regulations! 

Now what are these proofs that they need? For identity proof they have given a long list and for address proof they have another long list of documents which are accepted. Nothing other than these schedules are accepted! 

Now all these documents need again the Identity proof and the address proof for getting it made from their respective authorities of the government. This implies that in this great country it would not be possible for any one who does not have any of this document initially to have those made if they want to proceed as a law abiding citizen following all the rules. 

So which one is the original document? The rule making babus (administrative officers and including their supporting staff) of India and their supervising political bosses are least bothered! These are silly issues for the people. There are ways and people would know how to do it. If any one is not knowing that is their problem! The authorities of India seemed to think like this. People also began to feel that the authorities made all these rules and regulations for perpetuating corruption and collecting unaccounted corruption moneys! 

Because it is not at all difficult for any one to get any of these documents if they are willing to shell out some money to the agents. 

There are ways and means. 

And for that matter one can make any number of official identities and address proofs! 

If a person wants he can exist in India with many officially certified identities! 

There are no rules and regulations in India on the manner or standard in which an identity document is prepared. That gives enough flexibility for the concerned authorities and their lower level staff to generate documents with irrevocable errors knowingly or unknowingly! 

There exist no inter departmental data exchange in the various governmental departments and organizations and every one goes ahead according to their own ways! No political party who came into power in India so far has felt it necessary to resolve this unique identity crisis of India about which I had written in a few blog articles earlier too. They all proceeded their own way to make things complicated at every instant instead of making things simpler! The Election Commission of India has been doing it for many years now by making the so-called voter i-cards with innumerable errors that any one can possibly imagine! Again, such erroneous voter i-cards are acceptable documents for Id and address proofs for any banks as the KYC document! 

Later yet another authority was created in an arbitrary manner called the Unique Identity Authority of India (UIDAI) which began to make id-cards for Indian residents. However, this authority was not so clear about the purpose of creating these id-cards!

Spending nearly 18000 crores of rupees for the so-called unique bio-metric linked identity card called Aadhar and finally making it an unfinished and failed exercise by UIDAI is the latest governmental actions done without any fore-thoughts in India, in this context. 

Identity card making has become an industry in India. In that process Indians have got the unique opportunity to exist under different identities if they so desire. Of course, no genuine citizen would make advantage of this loop hole. But that would not be the case with all those non genuine people. 

That means, the very objective of KYC is failed!

So what are the solutions? 

In my opinion, solutions are not difficult. It is easy and simple if the government is pro-people and sympathetic to the problems of the people. 

If the government allows its bureaucracy to work the way they like without any accountability to the people's legitimate questions and probes then things would happen this way only. 

When some governmental programs fail, the concerned people connected with the program should be held responsible and the parliament or the state assemblies should have the power to call them to get explanations. 

In India, unfortunately there is no such accountability at present. It is a free ride for all. Only authorities and no responsibilities! 

Will the future people's representatives ever consider this as some thing important to be debated and resolved?

Only time would tell.

Till that time me and you would remain fuming over all those idiotic rules and regulations forced upon us by the so called authorities of the country even when we live in what is supposedly a democracy!

I heard the potential future PM of India-Mr Narendra Modi-speaking out his vision about governance of India. 

"Less governance for better government" he was heard as telling.

Yes I agree with him fully. If he meant less and less rules and regulations by the term 'less governance' , it is indeed the right approach for a better government.

Because the more rules and regulations made by imperfect individuals would indeed make things complicated for any government to function effectively. The more you try to untie the knots, the more entangled you become! 

My Heartfelt Sympathies to these Ignorant Men and Women of My Country Who Discard their Opportunities to Serve Others !

Post liberalization, India has seen some very positive changes in a few fields of public service, the notable being in the retail banking field. Some of these changes have eased the common problems faced by the small individual customers to a greater extent while some other changes have made the people to consider banks as officially patronized looters.

My intention is not to write about all of them. I am just trying to share some of my recent experiences. The banking authorities and the staff could may consider these as some feed backs from an individual customer and may think of taking some lessons for improving their acts, if ever they take these in that manner.

The first experience to share is as a customer of the largest public sector bank of India-the State Bank of India (SBI). I have been a customer of this bank for the last over three decades. In the earlier days the branches of SBI and all other nationalized banks appeared more or less the same manner. Shabby, humid, and crowded with a few caged counters behind which those counter clerks performed their acts as if they were doing some great favor to the customers. They treated the individual customers with contempt especially when the customer crowd was more. Even on those days when crowd was less, the time to get your task done used to be more or less the same. Because on such occasions the clerks did their work at leisure. Those were the days when all works used to be done manually and fat banking ledger books and the various paper instruments had to be moved from table to table by the most important functionary of the bank-the peon. 

Then came the early era of computerized banking. Nothing much got changed with regard to the customer friendliness. The time taken for some work to be done in the bank for an individual almost the same as before, because this time the bank staff got various kinds of excuses related to non functional computers and printers.

Banking experience for the individual customers dramatically changed when the government allowed a few private new wave banks to get in to the act of banking. The ICICI bank was the first among this group which made a drastic change in the way the Indian banks worked. All of a sudden, the Indian people saw air conditioned bank branches which treated customers much differently than the existing nationalized banks. Added to this comfort was the ease at which these new banks introduced much efficient and proven computer software as compared to their public sector counter parts. The new wave private banks also implemented recruitment policies in such a way that they almost eliminated the clerical staff and got fresh talents with better educational qualifications and essential training to man their retail banking branches as junior officers. This helped them to implement single window customer relations desks in their branches where each individual customer got some personalized attention. Banking was no more a dreaded experience in India !

Almost all the nationalized banks thereafter have been spending  crores of rupees to implement face lifting acts for their branches. Now almost all banks branches in India, at least in the urban areas, regardless of they being in the public sector or private sector, are air conditioned and apparently have good aesthetic appearances. However, the cultural legacy of the public sector banks continue as they could not do much to improve the personal attitudes of their lower level employees. 

All these banks together must have installed thousands of ATMs across the country in the last one decade. However, it is a common experience now for the customers that many ATM kiosks are not maintained properly by the respective banks. Non performing ATM machines are a regular feature. Non availability of lower denomination currency notes and delivery of currency notes of shabby quality are all common.[ This blog gives some more insights about the ATM kiosks of India.]

The advent of internet banking in the recent years have made banking much easier and comfortable for people like me. Now-a-days, people like me have to seldom go to the bank branches for routine banking. But if you are required to go for some purposes, the experiences may not be always very pleasant. That is what my recent experiences teach me especially when it is banks like the SBI.

I have been a customer of the SBI in Bhilai, Chhattisgarh for about three decades where in one of its branches I had my savings bank account to which my salary used to be credited from my employer. Through the same branch, I took a housing loan and the loan account also was linked to the same account and the EMIs used to be deducted regularly as per standing instructions. Then my work place changed to Ranchi and the SBI branch in Ranchi duly got my account transferred  to their branch on my request. But, the the loan account was non-transferable due to some administrative problems and that account got remained at Bhilai. However, as an internet banking customer, my account showed all details at one place and I never felt any discomfort. A few months ago, my loan was fully paid back and was duly discharged. Now my problem was to take back my security documents from the bank. To be fair enough, this should be done by my branch at Ranchi. They should be in a position to get my documents from their counter parts at Bhilai and deliver the same to me at Ranchi.

But the SBI does not operate that way as I have been told. I had to go all the way to Bhilai and spend a few days to get me back the papers ! A spent customer is of no value to this bank ! Once their purpose is served, they would simply discard you without providing the final relief. Okay, I took the pains to travel to Bhilai and had to spend nearly two days to get a simple discharge memo issued from my original bank. Remember, it is just a matter of three minutes for the staff to get the same and give it to me. But they would not do it so easily, even when they knew that I had come all the way from a distant place for that purpose. The culture of this bank is to create problem to the customer if it is possible and get enjoyment from that small sadism. 

However, with the help of some helping friends, I got the discharge certificate issued from the concerned branch at Bhilai. Now, this bank has a centralized loan processing office in Bhilai which they call by some alphabets which is not so easy to remember. This is the place where they keep the security documents under lock and key under the custody of a document custody officer. Now I was required to go to this person with the certificate issued by one of their branch located a few kilometers away. It is worth noting here that some of my friends had to spend a day to find out the procedure of getting the documents returned back from this bank. They seldom give such information in their website ! 

When I reached the document officer, there were another two customers with him. He was an young man. Though he did not show the type of nasty face some of his older colleagues in similar situations would have done ( usually they ask the customer to come the next day even if the work involves just a few minutes !) he was also not very enthusiastic to give a quick service to any one. All the three of us, one an old lady, were waiting patiently for almost an hour for him to complete the tasks. By this time his assistant had located the document file and brought it to his desk and he had made us sign few forms as a preliminary to return the documents.

The events that happened in the same place a couple of year ago while was working in Bhilai at the same place flashed through my memory. That time I was required to take back the security documents related to my car loan. That time another man was there. There were at least five persons waiting. But I got the papers back within about 20 minutes. But this time, I had come all the way from a distant place and that fact I had already told this young man, who is perhaps of lesser age than my children. He was showing that he was working hard, but the time was running out  and the time was very precious for me that moment. I had other works also to do before I returned to Ranchi ! The time is already 6.00 pm and as scheduled the pick up car had come to the bank and the driver phoned me for me to come out to be dropped in my hotel. The young bank man told me that it is going to take some more time and informed me that I could go and return after an hour or so as his office would remained opened upto 8.00 pm in the night ! So, I decided to leave then and come back after an hour or so.

Around seven I get a call from this SBI officer. Initially I thought thanking him for calling me to tell that my work is completed. But no ! He called me to tell me that it would not be possible for him to return my documents. Because, he found that my security documents that I had given in the bank as a security for my loan had the name of my son too as a co-owner of the property and hence my son too should come to the bank to receive the documents. A new strange demand indeed. Evidently displaying the sadism of the employees of the bank to harass unprepared customers to the maximum. Since I do not live in Bhilai and my son does not live with me, the harassment would have the highest effect ! Imagine, it is my document. I have settled all dues with the bank and a certificate to that effect is duly issued. They should have returned the documents to me through my branch at my place of residence. They have not. And now when I have traveled all the way spending much money and time just to take back my documents, this fellow is making a new excuse. Good customer care by the SBI ? Is n't it ? This is how this bank trains their junior officers !

Okay. There is no point in arguing with such morons. I returned back to the bank hurriedly. It was going to be 8.00 pm. If I did not reach by that time this fellow would go home and I would not get even the discharge papers that I had given him earlier ! That means additional number of stays in the hotel and missing my hard earned railway reservations to return home !

I reached to his desk in time. I tried to reason with him as a last effort. The fellow is not at all considerate. Finally, I asked him to keep my documents in his own custody for some more years ( I had no immediate use of those except that those are some the stamp papers of registration that shows my ownership of the residential property that I acquired with my hard earned savings and paying much of that to this bank as interests  !)

But I requested him to write down the reasons for not returning my documents back to me even after my loans are fully settled and discharged a few months ago.

Then I got the next shock. He, being an officer of the bank, refused to write that. He said that would be written by his boss, the head of his loan branch. Had he been a non-officer, I could have understood that. But here he is an officer ! What officer ? I asked my self ! Now, where is his boss sitting ? Already it is the closing time. The boss might have left and I ought to stay back in this place just for nothing !

But fortunately, the boss had not left. It was a lady of my age ! Just then I noticed her name. It sounded familiar. Then I remembered. We knew each other. Yes, she was very happy to meet me. We exchanged a few minutes of pleasantries and then I told her my problem. She was quick enough to write an instruction to her junior officer and was considerate enough to accompany me to his desk to give the personal instructions.

Yes, I was fortunate. I got my valuable documents without future troubles.

But then I was thinking ! What if I did not know some one there personally ? How these bank fellows create trouble to those customers who happened to be of that category !

This is just one such example that I faced from the bank where I have been a customer for thirty odd years. I had much worse experiences there, every time to be sorted out with the help of some known officer. Remember, none of these problems were due to any mistake from my side.

On the other hand, I am also a customer to the new era banks like the ICICI and the Axis bank. Rarely I was required to go to these banks. But whenever I had gone, desk officers were quite unknown faces. But that never caused them to behave strangely. They were comparatively much better in extending the services.

The banks in India are much better in giving out the services, if you compare them with some of the government offices. At the lower levels, the bank staff are not corrupt as well. They do not have a system of extracting money from the citizens in general, unlike some of the notorious  government departments where the staff create problems to extract favors.

But then that is life in India. The most corrupt nation on earth now, as per the latest report of Transparency International.

In my opinion this happens due to the subconscious attempt from the side of the staffers to gain attention and importance. If every thing goes smoothly, they feel that their services get  neglected and go unnoticed. Create a problem and gain importance. This is the mind set of many employees in India.

Unfortunately, they fail to understand the pleasure of giving and serving. They fail to recognize the importance of getting the long lasting good wishes their customers would bestow upon them silently when they do the work they are supposed to do honestly , earnestly and pleasingly.

To me, it is the greatest opportunity one can have. The opportunity of serving others ! The opportunity to be of some help to others. Even when it is part of your job and even when that is what you are paid for.  

My heartfelt sympathies to those ignorant men and women of my country who create such situations to make their beloved country  to stoop down in shame by some of their acts of discarding the god given opportunities to serve others in whatever small way they could !  

PROPAGATING CORRUPTION THROUGH ATM MACHINES AND PREVENTING IT TOO !!

Have you ever thought of the common sense in which our banks have been forced by the top policy makers to spend millions or perhaps billions of rupees in installing and maintaining ATM machines across the nook and corner of the country?

If you observe carefully, you can see that these machines are not installed for the convenience of the common people at all.

One can see that these machines are installed by the banks concerned as if for the sake of installing those and making those higher authorities satisfied on the numbers and targets. 

Otherwise how will you explain the location of most of these machines? Most of these machines in India are located in such places and locations where there is no approach, parking space or are in isolated places where cash transactions are absolutely unsafe. You hardly find any ATM machines in commercial market places where one needs the cash!

Again a good number of machines are not maintained well or do not have the connectivity or the cash. If that was the case then why did they spend the money to install it? Was it for the commission that the ATM machine vendors were offering?

Now coming to the currency those working machines are distributing. You hardly find any ATM machines in India distributing cash of lower denominations of Rs 5, 10, 20 or 50.

If you request Rs1000, the machine will most likely give you a 500 rupee note and 5 hundred rupee notes. Getting two 500 rupee notes or one 1000 rupee note is also quite possible.

If you want to make those grocery and small payments for which cash is essential, ATM is of no use. But incidentally, the change that you need from the grocer is available with him. From where does the shop keeper get his small denomination notes, if it is never distributed by the ATMs?

Some years ago, the government of India made a rule that all payments above say Rs20,000/- to any one has to be made by cheque or similar instruments and not in hard cash. But no one ever follows this rule, making circulation of unaccounted cash a reality.

Why do the banks refuse to enter all the details of the cheques in their ledgers? Why cann’t the reserve bank or the government insist on this, making the banks do this without fail? Those insisting for cash payments take shelter on this simple excuse that payments made through cheques are difficult to be accounted. Is it really so? So, most of our educational institutions insist that the lakhs of rupees that they demand from the students as fees to be paid in cash rather than in cheques. No one really wants a trace or link in their huge transactions of money. They all want it in hard cash, without the possibility of any records anywhere.

So from where these large amounts of cash come from? Obviously, it is through the ATMs.

If the government is serious of ending corruption and also inflation on account of large cash black-money circulation in the economy, they only have to do a few simple things:

First, ensure that the ATMs give out only smaller denomination cash that too not more than say rupees 5000 at a time and not more than 20,000 in a month.

Second, ensure that all transactions of amounts greater that Rs 20000 for whatsoever reason for whoever concerned are either through cheque, draft  or through any of the electronic transfer means.

Those who need cash in huge quantities should be required to take it from the banks with proper recording of the reasons.

Higher denomination currency notes should be withdrawn from circulation. Let the wealth of the people in currency should be kept only in the bank accounts.

The cash collected by traders and businessmen should be deposited back in the banks on a daily or weekly basis.

Are these steps any difficult to implement?

If the authorities want, it could be done overnight. Just as they implement the price rise of the petroleum products!

But then, how can you expect the beneficiaries of the system work against it?

[Reproduced from Siliconindia Blogs of the Author]