Who owns my Bank account?

 After I opened my first bank account in 1976, I was happy and relieved that I have created a safe place for parking my savings and also deposited my then precious savings of Rs 5/- as opening cash ! Till recently I was peaceful and happy under the impression that my bank account is completely in my control under the watchful eyes of the bank and that no one else can operate the same.

But the thoughts were slightly rattled when the banks started diversifying their interest and focus away from personal banking and debited arbitrarily an amount, though small, from all bank accounts, without any explicit permission from or notice to the customers. Having blatantly trespassed into the bank accounts of the ignorant customers, banks swam through crores of rupees through the sheer number of accounts they could wade into. It was a different matter that those handful of customers who raised a flag were initially ignored and then the unauthorized debit silently reversed after they approached the Ombudsman was neither reported nor noticed by the hapless public, as it was in an era prior to digital and electronic reach.

Almost at the same time or slightly before when I was driving a team creating a banking product for customers across the globe on behalf of an IT major, I raised an eyebrow on the flow of credits into an account but then as a typical customer I failed to follow up on this potential quicksand.

Sometime back, a private bank customer was inadvertently credited with a huge amount, which he also withdrew and the bank had a tough time recovering the lost money and its face.

More recently UCO bank was reported to have credited some of their Kolkata based customers with amount totaling a whooping 820 crores, reportedly due to a 'technical glitch' , majority(!)  of which are reported to be recovered  {Read report here: https://www.mypunepulse.com/uco-bank-technical-glitch-important-steps-of-dos-and-donts-for-banks-and-customers/ }

The news report has also added that ' . . .  caused major apprehension about the security of their accounts and what the customers should do to prevent such activities...' 

This brings us to a question that has so far been treated as irrelevant "Does the bank has the authority to not only debit but also credit my account without my consent" ?

In case of periodical credits like deposits interest, the customer normally authorizes the same through the deposit opening formalities. 

In case of debits like safe deposit locker rent and other charges like minimum balance too customer consent is obtained, but what about other transactions from any source , be it from within or outside the bank?

Does not the bank , as the guardian of our account, hold the responsibility of preventing unauthorized transactions from anyone ? 

Though fictional, the case of a miscreant pumping credits into his adversary's account, calling the attention of tax authorities and bringing the innocent account holder's name into bad reputation , as detailed in Sydney Sheldon's fiction 'If Tomorrow Comes' comes immediately to my mind. With our bank accounts being digitally naked and exposed in the present era where our details are strewn across the web, it is not difficult for one to find the account number of anyone and do this just to tar the image of the receiver, who could be blissfully ignorant of the credits, atleast for some time !

But like the fence chewing the crop, how to prevent my own bank making unauthorized transactions into my account, is the question! If both bank and I are going to transact then who is the owner of 'my' account!

Now that many checks and balances are being provided to the customer to prevent unauthorized debits, can the customer also be allowed to set a 'Credit Transaction Limit', which shall be required even for the banks to make such credits ? Of course same technology could be used to obtain permission for standard transaction like periodical interest to deposit & savings account, locker rent, transactions charges etc.,

Like the saying of  'your freedom ends at the tip of my nose', where does the bank's freedom to access the customers' account ends?

Is it time for the Digital Banking stalwarts in banks to put on their thinking caps along with their legal counterparts and think differently? 

Better it is done early , I feel,  before they stare at some more complex scenarios aided by the emerging cybercrimes cornering them .

Avoiding Bank visits

It is well known that post computerization in the1980s, human resources at bank branches have been dwindling much to the chagrin of the branch heads. Branches which were once buzzing with more staff than the customers at a time are now looking at the tables turned with fewer staff  busily attending to the varied needs of waiting customers giving a real meaning to the single window concept. 

The disgruntled voices from public are also on the rise, about the services or the lack of it from the bank staff. It is not uncommon to hear about rude responses to innocent queries and non-compliance of even routine requests after many days!

Bankmen on the other hand are peeved about steadily decreasing staff strength as even the replacements for retirees (which is on the rise) are not being done regularly have almost stopped and they are forced to take up even non-banking activities when they are struggling to meet the routine jobs! It is a common sight in many branches to see officers coming out of cash cabins and staff are suffocating with rising expectations, we are also told.

Customer whining is more pronounced in the urban and metros due to the increased expectation flowing out of literacy and shorter fuse, while the ones in rural are more patient and tolerant, not grudging to gnaw into their sedentary life to repeat a walk to the bank few days later.  

Rumor mills of a 5 day week for banks instead of the present 6 days is also doing rounds though premiere bodies speaking for the business community, have voiced concerns against the move.  

While the debate rages on, as a customer and a beneficiary it is for the individuals to think differently and get the job done without disturbing the stretched bankmen and thus escaping their ire.

For personal banking, can we not really live without a regular visit to a branch to do our transactions?

Let us ponder. Some of the normal activities of a common customer can be broadly classified under two heads viz., Regular and Periodical , though not exhaustive.

REGULAR

1. Cash Withdrawal
2. Balance check
3. Check transactions in the account
4. Payment of EMIs
5. Payment of Bills , Credit/Debit card bills
6. Payment for utilities (Electricity, Resident Association, Internet Service provider, Cable TV etc., )
7. Remittances / Money Transfer - to account(s) in the same bank or other bank(s)
8. Recurring Deposit
9. Passbook updates
10. Standing instructions

PERIODICAL

11. Insurance Premium payment

12. Water Tax, Property tax

13. Income Tax payment

14. Payment of School/College fees

15. Cash Deposit 

16. Fixed Deposits

17. PPF 

18. Safe Deposit Locker operations

 In my opinion with little efforts , barring Locker operations, everything in the list above { though not  exhaustive} could be done through Internet Banking and ATM.

Some efforts with interest could save the customer a lot of hassles and heartburns in trekking to a branch and sweat it out waiting to be served.

Initially, it may look daunting, but with some practice these operations could be mastered to our own benefit.

Some may claim they are not educated enough to do these operations but, believe me I have seen minimally qualified people doing wonders on the internet and social network.

At the same time , when I conducted some free coaching sessions on basic computer skills, there were many participants, who were well educated and also had served in high positions, but they wanted to know more and learn properly.

So, what matters is not education alone but interest also.

But, many of us are used to start operating any gadgets without reading much the accompanying instructions and that is where it could hurt. I have seen many of my friends and relatives abroad, going fully through the manual of any item bought and then only start using them and that incidentally is the correct way, not to get bitten or victimized.

Recently I came across an incident wherein a person very educated and had also served in very high positions falling victim to a cyber fraud. What saved him from further damage is his awareness in setting the maximum limit in his online banking transactions.

The correct way will be to know the Don'ts first and also not to ignore the DOs as prescribed by the banks themselves. 

Awareness is the Key. Digital transactions have come to stay and it will be difficult to avoid them for long. Shunning them is also not in one's interest as was evidenced by the recent unfortunate pandemic which kept people indoors for months together. What made many people not only survive but also almost lead a normal life , barring driving on the streets, was the digital transactions and its operating knowledge. Whoever was conversant made hay while others suffered. 

From my part, I am keen on educating as many as possible on Cyber Awareness and one of my key initiative is Free online coaching sessions. Being conducted periodically since Feb 2022, over 250 people including seniors, retired senior executives, home makers and students have so far attended and benefitted . More details on this could be had from my website at: Senior-citizen-support

What saddened me in these sessions was the participation of some very highly educated who have also served in very high positions. At the same time, what gladdened me was that such people did not hesitate to come to learn, despite their education, position and age.

I have kept the cyber door open by offering FREE online coaching on 'Basic Computer Skills' to anyone interested at any time, as I feel basic computer operating knowledge is key to keep many cyber frauds at bay. For more on this free coaching sessions, please read at Community Support

So, my suggestion is : let us catch up, know and learn more about these and start operating on our own, saving a lot of leg work to bank branches more populated with customers than staff and relieve the bank men of their ordeal by staying away from them. 

If we transact from home, does it really matter whether the banks work for five days or six days and should we really worry about long bank holidays ? 

Before I sign off, let us have some thoughts to munch:

As a well-wisher, I am willing to offer my knowledge on this to the needy.

As a customer, you may be willing to learn and operate Internet Banking staying away from the branches

My question is what are the banks doing to attract customers more to online banking?

 My suggestion is : why not banks invite their customers periodically and conduct simple coaching sessions and also grab the chance to get closer to the customers more ? 

Happy and Safe Banking !

Is my money safe at the Bank?

A long post , but take a call which is important :

                - Taking away few minutes of your time or your bank balance !

 In the early thirties and forties people were believed to have kept their resources concealed in earthen and other pots buried under the ground and never used to leave the place, for fear of their hard earned valuables being stolen. As days progressed, finding it difficult to become tied to a place and also to protect them from persistent intruders, greater protection mechanisms were evolved when the brick and mortar concepts of banking came in handy. In the early days, banking was more closely confined to the safe keep of the money with some sops like interest which were not exactly attractive but people still accepted it for the sake of security of their money. 

With the elements of perceived risks in private financial organizations being eliminated by the government taking over the management and greater control mechanisms of some banks in 1969 and 1980,  the confidence soared and there was no turning back for such banks after 1970s. Keeping the growing number of customers happy and satisfactory became the main challenge of the banks when 'Customer service' became the buzzword and at times even yardstick for people to differentiate the wheat from the chaff. 

When the banking doors were thrown open to all, making it affordable to every strata of society, people were finding it difficult to continue with personal bank visits for their needs. The accent of service changed from 'Personal' to 'Remote' when the other bigger element of  'security' was not given that much of emphasis, though not ignored. With the pandemic ravaging the world the need for remote banking and contactless transactions became the need of the hour and India is one country which grabbed the opportunity well and now one can walk on the streets and shop without carrying any cash and with only a plastic card and some memorized PINs. 

When people started relaxing about safe banking of their resources came the bombshell of their hard earned savings being nibbled away, mostly without their knowledge and many times even they do their part ignorantly in getting their balance dwindled. Took some time for everyone to realize it was 'easy banking' not only for customers but also for fraudsters !!

Earlier it was reported of accounts being accessed by hijacking the OTP through Simswap like frauds, where the mobile phone was deactivated thus taking control away from the hapless customer  !

But now we hear of even transactions without OTPs . . .

Worse to realize that they not only take away money but also add beneficiaries - which means complete takeover of the management of the account  !! 

While mastering the art of breaking into one's internet bank account with the customer's credentials the fraudsters also devised  ways and means to handle the additional factor of security that was sought; they either sweet talked or hoodwinked the gullible ones with non existent sops like unclaimed bounty or  adorn the robes of government and ask for KYC updates. When these methods were tried, they also  made the victim press the panic button saying the customer's card will be blocked without an instant update. When the gullible and ignorant customer responds falling a prey with any such methods, his bank account is heavily dented with whatever available.

The speed at which fraudsters are gaining ground is not only scary but also dangerous !

And cyber frauds were like the dreaded covid- not sparing anyone , caring little about their status. Right from Technocrats to Civil servants to Bank executives to home makers, the list of victims is endless.

So, how to avoid becoming a prey? Are there not any way out of these traps?

First and foremost is to be aware of what is happening around. How a potential victim is lured? How a soft target is identified? How well the potential victim's support system is assessed.

Yes, Need of the hour is Awareness . Greater Awareness.

About the Modus Operandi

About Preventive measures and 

About Reactionary steps, when one gets sucked 

In this con game which at times even cost the life of the victim, there are greater roles to be played both by the customer and banks themselves. In addition NGOs, Community Support organizations and peoples' well wishers could step in to improve awareness.

Customers:

• Please be aware of all the modus operandi that are being shared in the news papers and channels. Basic awareness of these could instill an additional layer of alert in everyone.
• Keep yourself updated through right channels and guidance
• Avoid public or free Wi-Fi , which are generally insecure for banking transactions
• Every bank periodically comes out with their own protections like setting transaction limit, Card limit, Online limit, eCommerce transaction limit etc., Be aware of these and ensure that it is set properly. 
• Ensure a strong password (minimum of 21 characters- my suggestion) for all your accounts
• Never click on any link shared by anyone even if it is from the bank representatives. Instead go to the bank's website from your system and then update your required inputs
• Never respond to any call/ SMS/Email in haste. Just pause for sometime before reacting to such potential traps.
• Never share your OTP with anyone
• Compulsorily change your password periodically or when you feel you have used it in unsafe environments.
• Change your password on return from domestic or International travel.
• Do not expose your main bank account (wherein your salary, pension or monthly deposit interest is credited) for online payments and other eCommerce transactions. If possible, keep a separate bank account and use only that for such transactions and keep only a minimum balance there.
• Review your internet banking account periodically and verify that only your authorized transactions are shown.
• Review your internet banking account periodically and ensure that only your authorized  payees are there and delete the payee details which are no more required.
• Ensure that your device is secured with a reputed and proven anti virus software
• Avoid mobile banking (my personal thought) and operate internet banking only from your personal system or laptop. I am aware of many who would like to debate on safety of mobile banking vis-a-vis internet banking, but then this is my thought and I am sharing what I am convinced about. 
• Never ignore any SMS on your mobile - It could be a message for a transaction that you may like to contest
• Keep a list of TODO handy (which could include banks' helpline number, Police details, Cyber crime reporting points etc. ., ) that could be used in times of need without loss of time.
• Be clear of the steps to be taken in case of an attempted or successful fraud on you. Never panic and it is IMPORTANT that it is reported within the Golden hours for a possible recovery of loss.

Banks:

 It is to the credit of banks that they are increasingly proactive in introducing new measures to protect the customers interest and also send periodically awareness messages through email and messages.

But some of the open areas , that has room for improvement are:

• In case of multiple high value transactions over online, banks should explore having additional level of security like secondary pin for more than two consecutive transactions. 
• OTPS/Pins  are not to be sent as SMS alone but a part of the OTP in SMS and other part as email { Already it is in vogue in some banks}
• Like setting limits in Cards, banks applications could have limits for number (Not amount alone) of online transactions, which can be modified at the will of the customer
• The 24  x 7 toll free helpline MUST be reachable as it is not in many banks
• Banks need to propagate the cyber crime helpline of 1930 vigorously along with their own.

Awareness Groups:

There are many groups, welfare organizations and NGOs like Cyber Society of India (www.cysi.in) which are already focused on creating greater awareness and sensitizing the public about the prevailing cyber threats.

 The welfare association of the local area could join hands with such NGOs along with the local police station and conduct periodical road shows and sensitize the public about changing methods of fraudsters. 

All said and done, with all the sermons given, only you could lock your house to prevent unauthorized entry of unscrupulous elements.

Remember the following mantras and stay protected :

1. View with caution anything offered free (like unsecure Wi-Fi, Lottery etc.,)-could cost you dear
2. Never click on any link through SMS or email
3. Never respond to calls in haste
4. Double check with the authorities before reacting to alerts
5. Never share your OTP, Password or personal Id documents 
6. Protect your bank account with all the recommendations from the bank
7. Keep following the updates from Bank, Police and welfare groups and never be left behind
8. Keep Praying and hope that you are away from the fraudster's glare

Good Luck !

Maligning the culture !!

Of late, it has become a practice to attribute things and activities to  'Corporate culture'- mostly when they go bad or wrong. And this has become the whipping boy for everyone, even from those who would find it difficult to spell the word ‘corporate’. While every culture has its points for review leading to growth, the tendency to sweep this off with a single stroke is disappointing.  But then, amongst other things, there are also many practices in corporate that are worthy to emulate. Some such are 'Innovative thinking' and 'Art of Appreciation'. Unfortunately, the lack of these practices in some are hurting the current banking scenario and this is an attempt to highlight their need for the serving and retired bank men, whose comments could impact the bank staff morale.

Taking cues from the corporate or other culture, some bank men from a popular nationalized bank in Chennai have thought innovatively and decided to hit the road, catch the customer or prospects on their early morning walk to get first hand feedback and to propagate some of the bank's offerings as well . And so they were spotted at the Chennai Marina beach near Gandhi statue early in the morning by around 6 AM, with a proudly perched uniform cap that glowed with the bank’s logo prominently - seen distributing pamphlets of the products and encouraging the walkers to visit  the branch for further inputs.

At the outset, the staff involved in such innovative thoughts have to be encouraged as they have gone some extra miles to take the bank to the place where the common man throng. One is not sure whether it is done at the suggestion or prompting or behest of the senior management or on their own. Either way, it requires a friendly pat!

But, the amount of cynicism, snide remarks, pessimistic thoughts aired by the fellow bank men (in service or retired), towards such a step, shows the extent of frustration and negativism that has been allowed into their system.

Here comes the second of the Corporate Culture - Appreciation. The said bank staff have chosen to hit the road early in the morning towards improving bank's image, offering and also customer contact, instead of availing the hard earned second saturday which the Government has given to them for an extended sleep to compensate for the extra hours put in through the week. This gesture of foregoing an opportunity of family time itself calls for appreciation as a first step and a pat for that would help the otherwise beleaguered staff to keep their morale high.

Instead, sarcastic remarks of this being a 'circus', ' a publicity stunt' etc., from the arm chair critics, will really hurt the hard-working staff.

A valid point has been raised that the customer service at the branch needs to be improved and there can never be a second opinion on this. But then, such innovations need not be halted for an existing malady! I am not critical of those expressions and do not mean to say that they are wrong. But, their frustrated or high-handed expressions could dampen the spirits of the few who still believe that they could put in their bit towards the upliftment of the bank, otherwise battered from all quarters. 

 

Let us first learn to appreciate others’ gesture and their efforts in going that extra mile, instead of putting dampeners and road blocks. If we can, let us join and contribute or simply turn the other way instead of hampering positive progressions.

Dealing with shirking banks taking cover under black coats !

This was posted by me, today, in LinkedIn under the Group 'Banking, and Finance Technologies":

It was shocking to read the treatment meted out to the Squash champion Dipika Pallikal by the Axis Bankhttp://timesofindia.indiatimes.com/city/chennai/Squash-champ-vs-bank-Verdict-on-February-20/articleshow/29677903.cms#write

Though the matter is subjudice , I would like to dwell more on such incidents rather than the specific case. 

Few days back one of my close relative too had this experience of a Nationalised bank rejecting money in ATM (reason "Unauthorised Access"), though she had sufficient balance in the account. The incident was reported and since there was not much help from the HepDesk, it was escalated to the CMD's office and even then the matter was resolved only after three days. 

Ultimately this turned out to be due a process failure within the Computer Dept and the branch, with both blaming each other, in open communications to the customer ! This was for a fairly urgent purpose and since it was a small amount, she could manage without the ATM support. 

There are few things on which I would like to pick the bankers' brains: 

1. What if such a denial happens at a very critical juncture, like one has to pay Hospital for the surgery to proceed on a Saturday night? How will the customer manage & what is banks' responsibility here for having denied payment despite a healthy balance in the account? 

2. The complainant's counsel argument in the above case was "A bank is a custodian of the consumer's money and denying the complainant use of her own money is a clear deficiency in service." He said Bank's argument of Force Majeure (chance occurrence or unavoidable accident) was not sustainable as no unforeseen event, like a power failure or snapping of communication lines, had occurred. The bank's counsel has said ".....it was "a one-off incident" and there was no deficiency on the part of the bank...." 

Having denied the service and putting customer in a soup, the bank's effort to wriggle off as 'one of situation' is really a shocker. 

Understandable that counsels could be engaged to argue in any manner for defence/prosecution and it is their job to make a killer appear like a saint . 

What happened to the moral responsibility of the bank? 

Having said this, the bank also tries to wriggle out by questioning the authority of the honourable court / Forum by saying "...As the incident occurred on foreign soil, the forum did not have the jurisdiction to try the case...", despite the fact an International Debit card was being used !! 

It is highly desirable that such high profiting but mean minded and less customer friendly banks are taught lessons by the court in pulling the highest executive for having the cheek to put those in hot waters, whose only fault was in choosing the bank for parking their investments

When the Crown stumbled

Being somewhat familiar with Internet and computers, I have always been making my banking transactions from home, so that the bank is relieved of hosting at least one customer less at the branch. I am a strong advocate of Internet banking and use of other means which would desist customers from visiting a branch. I have also been under the impression that when you have sufficient balance at your disposal and the means to access it, you are safe at anytime to face any exigencies in life. And unfortunately, it was this surmise that fell in a heap early this week. No my bank did not go bust nor was there any run on the bank. Customers were simply unable to withdraw their amount and make any transactions. Their bank balance suddenly looked like the film heroine whom you could admire from a distance but could do nothing more than dreaming about doing!

The bank originally established to encourage 'Overseas' operations but very much 'Indian' as for its banking roots are concerned screeched to a halt last weekend. The bank, which has so far been boasting of being the only bank in India to be using a home grown software developed by its own computer department manned by its  dedicated set of domain rich knowledgeable officials, was in fact driving with its proprietary software for quite sometime, with occasional hiccups. The hiccups, as and when happened, were deftly handled more by the patience of its loyal clientele than by the experts who  pitched in to put it back on rails.

What happened this week was a disaster- What started as a trickle slowly spread from Internet Banking to the ATMs until the final crown viz., the main banking software came tumbling down, leaving both the branch officials as well as the hapless customers aghast. For close to four days, people could not effect any transactions, withdraw money, close loans, make overdue payments resulting in a reported loss of hundreds of crores of rupees. While Rome was burning, the Bank chose to play violin with its own melancholy of " Unable to service due to Maintenance...". The Bank chose to clean up its own backyard for four days, at the cost of innocent and patient customers, as per the bank’s self confessed announcement at its net banking site.

At branches there were many instances of customer silently suffering such as unable to withdraw matured deposits, a parent restricted from proceeding with purchases for their wards’ marriage and the variations of rupee value and gold prices not exactly helping them. An international travel could not be made and a student was forced to continue to live with the suspense about the fate of his educational loan application. 

The rumor mills were also doing the rounds which forced even some of the irate customers to rush to the branches as they were fearing the worst for the bank, since it  could not transact for days continuously.

The branch officials were the worst to be affected as they were left to fend for themselves against the angry customers, who at places even threatened to take law into their own hands. Some frustrated staff, unable to face the customer’s ire chose to vent their feeling over the social network.

A software crash is not an unknown incident and it can happen to any organization at any time. What was more appalling was the reaction of the bank to the disaster in keeping everyone in the dark about the reason and the status of the remedial measures. If they have taken four days to maintain the software at customer cost, as they claim, I have a feeling that their legal department will be having its hands full, facing compensatory claims in the months to come. Clearly the bank was found wanting in handling the situation and in my opinion, this is more a disaster from the PR perspective for the bank than the software .

It is also time for the bank to introspect whether it is adequately shielded against the shortcomings that normally accompany the home grown software such as sufficiency and independence of testing of its software, periodical independent audits and Disaster Recovery Measures.

A disaster of this nature impacting the customers, though tragic, is also viewed  in its aftermath as an awakening exercise. It will be in order for the Board to constitute an Independent enquiry to find out the robustness of the software to meet the increasing functional and non-functional stress and expectations arising out of the flurry of new branches, whether lessons learnt from any previous such outages were addressed and the effectiveness of the Disaster Recovery Management which is in vogue.

As one who is associated with the bank for decades, I bled to hear customers using expletives in their ire. But, it was also heartening to hear that some of the branches went out of the way to meet the customers’ needs by making payments despite the non availability of the support system.  It is such gestures from loyal staff that helps me to retain my belief that this bank will be held high soon.

Unlike yesteryear when customers used to visit branches to form opinions, present day clients conduct their banking transactions from across the globe. Their gateway to the bank is its software which sits as a crown on the massive edifice of the bank, built on years of service and reputation. When it falters, it creates a very bad taste in the mouth. So, it is paramount that such outages are reduced to absolute minimum in terms of minutes and not hours and days. Hope banks  remember that it is not a sin to falter but to allow that to repeat, is.