வாராக் கடன்களும் தேறா வங்கிகளும்

"கல்விக் கடனால் கலங்கி நிற்கும் மாணவர்கள்"
"கடனை வசூலிக்க வங்கிகள் காட்டும் கெடுபிடி"
"கந்து வட்டி கும்பல் பாணியில் கடன் வசூல்"

இப்படிப்பட்ட தலைப்புகளுடன் தொலை காட்சியில் ஒரு விவாதம் நடந்து நடந்து கொண்டிருந்ததைப் பார்க்க நேர்ந்தது.

இந்த கூற்றுகள் உண்மையானால் , இந்த மாணவர்களை விட ஒரு நன்றி இல்லாத சமூகம் இருக்க முடியாது!

பல போராட்டங்களுக்குப் பிறகு கல்லூரியில் இடம் 'வாங்கியபின் ' எப்படி வருடா வருடம் கட்டணத்தைச் செலுத்தப் போகிறோம் என்று விழி பிதுங்கிக் கொண்டிருக்கும் பொழுது வந்து கை கொடுத்த வங்கிகளை இப்படி நினைப்பது எந்த விதத்தில் நியாயம் என்று புரியவில்லை.

இதற்க்கு வங்கிகளும், அவர்களுக்கு கொடுக்கப்படும் அழுத்தங்களுக்கும் ஒரு பங்கு உண்டு . சில காலங்களுக்கு முன்,  கடன் வேண்டுபவர்கள் வங்கிக்குப் போய் வரிசையில் நின்று வேண்டுவார்கள் . ஆனால் இன்றோ அண்ணா பல்கலைக்கழகத்துக்குள்ளேயே வங்கிகள் வரிசையில் நிற்கின்றன .

இந்த அழகில் "வாங்கிய கல்விக்  கடனை கட்டவே தேவை இல்லை" போன்ற தேர்தல்  வாக்குறுதிகளும் அள்ளி  வீசப்படுகின்ற இந்தச் சூழ்நிலையில், கடனைத் திருப்பிக் கட்டலாம் என்ற எண்ணத்தில் உள்ளவனும் தயங்கி நிற்கிறான்.

போதாக்குறைக்கு 'ஆயிரக் கணக்கான கோடிகளைக் கடனாக வாங்கியவனை வெளிநாட்டுக்குப் போக விட்டு விட்டு இப்படிப்பட்ட ஏழைகளை மட்டும் குறி வைக்கிறார்கள்' என்று வங்கிகளை வசை பாடுகிறார்கள்.

இப்படி தொலைக் காட்சியிலும் தெரு மூலைகளிலும் கூவி விற்றால் எப்படித் திருப்புவார்கள் ?

அரசியல் அழுத்தத்தில் கடன் கொடுத்த வங்கிகளும் , கடனை குனிந்து வாங்கிக் கொண்டு, பின் நிமிர்ந்து நடக்கும் கடனாளிகளும் எக்கேடோ கெட்டு போகட்டும். இதற்க்கெல்லாம் நடுவில் மாட்டிக் கொண்டு தவிக்கும் வங்கி மேலாளர்களின் பாட்டை யாராவது நினைத்துப் பார்க்கிறார்களா??

கொடுத்தவைகள் வாராக் கடனாகி விட்டது என்று வேலையிலிருந்து ஒய்வு பெறுவதற்க்கு சில நாள்கள் முன்தான் விழித்துக் கொண்டது போல் ஒரு ஓலை அனுப்பி , ஓய்வு காலத்திற்கென்று நம்பிக் கொண்டிருக்கும் நாற்பது வருஷங்களாக சிறுக சிறுக சேமித்த பணத்தைக் கொடுக்காமல் போதாக் குறைக்கு தாற்காலிகப் பணி நீக்கம் வேறு செய்து விடுகிறார்கள் . இந்த மேலாளர்கள் என்ன ஆசைப்பட்டா இந்தக் கடன்களைக் கொடுத்தார்கள் - 'ஏன் கொடுக்கவில்லை' என்ற அழுத்தத்திலே கொடுக்கப் பட்டவைகள்தானே , இப்பொழுது வாராமல் போய்க் கொண்டிருக்கிறது !

வங்கி அதிகாரிகளின் பாடு இப்படி கேவலப் பட வேண்டாம் - கேட்பாரற்று போன இவர்களுக்கு உறுதுணையாக இருந்த சங்கங்களும் ஒதுங்கி நின்று வேடிக்கை பார்த்துக் கொண்டிருக்கின்றன .

இப்படிப்பட்ட விவாதங்களினால் வரும் விளைவுகளால் இன்றைய தொலைகாட்சிகள் நாட்டுக்கு  நல்லது செய்வதா இல்லையா என்று மற்றொரு விவாதம் கூடிய சீக்கிரம் வரும் என்றே தோன்றுகிறது.

Grateful IOBian

IOB is 78 years old , so I learnt from a social network post today. Am sure I am only one amongst the lakhs of well wishers and employees who acknowledges gratefully the bank for its services and support it has lent. May the Bank continue to serve in the decades to come.

One major difference between the public sector institutions and other private organizations is the deep rooted connection the employees feel they have with them. With the current scenario of employees looking over the shoulder for the next better opportunities, services extending for 30 and 40 years will soon be a thing of the past. Having been associated with IOB for 25 years, I can certainly feel nostalgic about those days, particularly as an employee.

When I joined the staff department in 1976, the bank has already grown and was still climbing. I can still recall people talking animatedly in buses about IOB declaring a 14.4% bonus to its employees, an astonishing figure when the more stable banks were contended to declare the statutory 8.33%.

It was a pleasure working at the Central office in the then 'Staff Department' and learning the ropes of administration and more importantly the art of letter writing from stalwarts who will beckon you with a circle around your initials in the office copy, to point out some omission. The respect for the organization was cultivated by advising us not to put the pins across the bank's symbol in the letterhead! The empty superintendent's chair will never be occupied even by staff working on holidays!!

The learning at the branches were priceless; From seniors who taught us customer handling, tallying of books, official discipline, cash handling, avoiding manual mistakes and the list goes on. The door to door Deposit campaigns made in the neighborhood taught me finer aspects of marketing and also enabled me to bring customers closer to the bank.

The bank not only created trust in the minds of customers but also the staff . The facilities offered to the bank men were enormous. Housing loans were given at 5% rate of interest and most of the bank's employees who own a house now would not have done it without this support. The yearly 'Festival Advance' offered free of interest was the first savings point of every employee with an eye on the future. I have known many employees, who used to buy jewels using the Festival Advance and other accumulations and then pledge the same under Jewel loan scheme, thus creating the precious bullion, which was a must in those days for the girl's marriage.

Had reasons to be happy whether it is rain or shine as they would attract either Flood loan or Drought loan. The employees were offered financial support to buy vehicles and at one point of time, we used to joke that everything we moved around belong to the bank. The house supported by housing loan, the vehicle through vehicle loan and the marriage of the employees were also assisted with 'Marriage loans' ! Assuaging the yearly income tax worry, the bank supported its staff  by offering loans on the investments one make like loan against NSC etc.,

'To deliver the best of judgments the judges have to be kept above wants', it used to be said. Adapting the adage, the bank offered support on all fronts and at every opportunity to keep their staff comfortable. Perhaps that is the reason the bank men were always in neck deep of various bank loans and drew minimal net salary at some point of their career.  But, at the end of one's service, a prudent bank employee could go with a handful of cash bag by making clever use of the loans offered and pooling in his own meager resources. IOB was always the first bank to offer such facilities and every IOBian will be proud to recollect such supports. I am yet to come across a common man who could use the bank's 'Recurring Deposit' scheme to better use than a bank employee !

It was the first bank to create its own home-grown software, when computerization was introduced in Indian banks and it is to our credit that people used to say proudly that one of the foreign banks in the neighborhood of our head office visited our computer department and appreciated the efforts and nuances used by the team.

An organization with over 2500 branches across the globe and more than 30000 serving employees is bound to come across many bottlenecks in its run and it is commendable that the bank has risen to the challenges and has covered its path with glory over 77 years. I am very confident that the bank will continue with its trail of glory and service to the people, despite the contretemps that could come from time to time. As an IOBian my heart always skips a beat when I pass through the Central office building in Mount road and see the towering building standing tall !

The current and future employees of the bank has the onerous responsibility of keeping its flag high and it is a matter of satisfaction that there are all signs of these IOBians surpassing this expectation.

How 'small' is Expendable?

Few days back, my friend living in New York, got a call from his bank saying that a transaction of USD 4 using his credit card was pending approval as they wanted to check the same being used in a small town in Africa. They wanted to make sure that the transaction was indeed made by my friend since the location was different. When he responded in the negative, the bank assured they will block his card immediately and send him a new card.

After disconnecting the call, when he tried to check his card history via net banking, the card had already been blocked from the account! The bank acted so fast and did the blocking instantly that it thwarted this and prevented any further attempts.

 It is suspected that the data attack on the popular retail store whose database was compromised was the reason behind this potential misuse, as my friend has made many purchases with the retail outlet.

Things to be noted here are U.S banks do not have the Indian practice of One Time Password (OTP) and instant SMS for every transaction, while only a notification will be sent on the App.

But, they follow an appreciable practice to check with the customer on any suspicious transaction- in this case he was contacted as the transaction was made from a place much farther from the declared place of residence. Imagine even for that 'small' amount of $4 !! With this they were able to avert a potential fraud as it is very likely that in the event of this transaction for a small amount going through, the fraudster would have made an attempt for a much larger amount with the data in his possession.

In this context, it is to be noted that today it was reported in a social networking site that RBI is contemplating to remove the practice of sending OTP for 'smaller' transactions and would soon come out with details. With the increasing incidents of cyber frauds, this appears to be a retrograde step towards protection of customer interest. While it is fervently believed that RBI will reconsider this ill-advised move, in the absence of such robust 'live' cross checking practices followed in U.S, the central bank could also enlighten as to how a 'small' amount could be identified, in this land , where the poverty line is fixed at Rs 27 in rural area and Rs 33 in Urban area !

Bold initiatives for better banking experience

When I went to the Citi Union Bank to deposit a small amount into an account at their Kumbakonam branch, I was surprised that the same could be done without using any credit challan. A handheld machine, similar to the card swiping machine is offered and the remitter is required to key in the account number and after verifying the name the amount is accepted by the attending staff. The receipt given is similar to the charge slip emanating from the card machine. Amazing that the whole transaction took only few minutes by what is known as 'Xpress Desk' banking.

No doubt a laudable thought process, cutting down the traditional process of filling up the challan including the denomination and stand before the queue at the cashier, who counts it atleast twice , brands a stamp and above a certain amount the credit paid in challan will also be countersigned by another official. I was informed that upto 49000 could be remitted in such a way !

But the bank will also do well to cover some of the potential risks:

1. Remitter's details are neither sought nor recorded anywhere and if required, the remitter cannot be traced. This could create problems for people in sensitive posts by making mischievous credits into their account.

2. No denomination is entered anywhere. In case of differences, counterfeit notes etc., tracing will be next to impossible, putting the bank staff to greater risk.

3. The charge slip like acknowledgement on the thermal paper may fade away soon. In the growing disregard of passbook practice, this could be risky for customers.

4. Newer avenues of corruption and black money conversion could be derived in course of time making use of the dropped security veil.

While the bank's efforts at innovative ways to cut down the waiting time at the banking hall is noteworthy, the bank would also do well to plug such potential trouble spots. Despite these apparent shortcomings , the bank must be applauded for taking some bold and innovative steps while the traditional pioneers in banking , under the protective National cover are still dragging their feet, even for minor steps that could facilitate better service to customers. 

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

Withdrawal of Pre-2005 released Bank notes

The Reserve Bank of India has today advised that after March 31, 2014, it will completely withdraw from circulation all banknotes issued prior to 2005. 

From April 1, 2014, the public will be required to approach banks for exchanging these notes. Banks will provide exchange facility for these notes until further communication. 

The Reserve Bank further stated that public can easily identify the notes to be withdrawn as the notes issued before 2005 do not have on them the year of printing on the reverse side. (See samples given below)

The Reserve Bank has also clarified that the notes issued before 2005 will continue to be legal tender. This would mean that banks are required to exchange the notes for their customers as well as for non-customers. 

From July 01, 2014, however, to exchange more than 10 pieces of `500 and `1000 notes, non-customers will have to furnish proof of identity and residence to the bank branch in which she/he wants to exchange the notes.

The Reserve Bank has appealed to the public not to panic. They are requested to actively co-operate in the withdrawal process.

Please also read related links at:

 http://www.hindustantimes.com/business-news/rbi-to-withdraw-all-currency-notes-issued-before-2005/article1-1175658.aspx

http://m.economictimes.com/news/economy/policy/currency-notes-issued-before-2005-to-be-withdrawn-post-march-31-rbi/articleshow/29210580.cms

Banks and Technology

The more banks adopt technology, the farther it seems to be distancing itself. The more facilities it seems to introduce, lower the banks seem to fall short in the expectations. Does that mean that the banks are not serious about what they do to improve customer service, facilities with additional support from the emerging and growing technologies?

Though prima facie the banks' efforts to reach out to people and bringing Indian banking on par with the best in the world may appear to be more of a dressing up exercise and with goals other than customer satisfaction, it cannot be totally swept aside. After all, computerization introduced amidst so much of resistance from major walks of stakeholders way back in the 1980s has indeed brought benefits to the customers around but then it appears to be insufficient. More so, the banks' struggle seems to be in keeping up with the technologies used and extract the maximum benefit out of these efforts, rather than its willingness to serve. In short, the banks seems to be falling short of directions in choosing the right priorities !

But then, what exactly ails the banks' technological aspirations that gives way to more of frustrations from the customers? A recent article I read seems to provide some thoughts and insights (http://ponnarasups.wordpress.com/2013/12/23/engineering-grads-have-bright-future-in-banking/)

Even when computerization was introduced in the later half of 1980s, banks though hurriedly brought in computers also did their best to provide support by stationing technical staff from the software providers but then, this obviously could not have been a permanent solution. Indian public in general are well equipped and knowledgeable to expect and extract the best out of banks and this is where the latter faltered.

The initial hesitation and dilemma of the banks about using third party applications or in-house developments took their own toll and by the time the issue stabilized many precious years have rolled by and so also rose the customer knowledge and expectations.

Those banks which chose to use third party applications had a head start in that the usual strapping and paraphernalia accompanying any application launch  was there but by the time the euphoria started clearing up , the realities began descending in and only then the banks started talking about the Service Level Agreements (SLAs) etc., and the software developers made good use of the time between the initiation and reality. The banks that used such software had to then continuously engage themselves with the developing organizations about the functional gaps and support.

The gaps in functionality was blissfully absent in those handful of banks which chose to develop their own software. But then the people who were involved were mostly bankers who were falling short of the professional intricacies, expectations and were obviously struggling to keep up with the mercurial advancements- both technically and professionally. Bankers being such a serious breed would never accept anything other than perfect and that seem to be directly at loggerheads with the existing practice of  deliver and then started discussing about shortfall in the name of 'production support'.

Long and short of the story is that from both the sections of banks, the customers suffered uniformly. Banks should have neither indulged in complete technical aspects nor given away total control to the developing organizations but must have had a finger in both. In short, they lacked the wisdom, sight and professionalism that typically signifies many US and other customers who provide software business to India. Though, they entrust the work of development of the software they also engage immediate rungs of professionals who effectively monitor, report and scream when things go out of control. And for them, "Customer Satisfaction" is the ultimate and no compromise will be made in this area.

Even now it is not too late for Indian banks and with some non political, non trade unionist attitude and actions they could well come out of the shackles as these are not problems that could be resolved over months. With no dearth of technical talents in the country, banks would do well to form core experts team and technology team, who should work closely as a single unit.

With so much of vendors also available and making the best use of the existing competition , the banks could well extract their pound of flesh which would result in a stable and sturdy software more user friendly to the customers. Instead of trying to impart technology into the aging skulls of bank men, Banks would do well to blood young engineers into their fold and run a focused and specialized banking boot camp to groom a possible pool of techno bankers, a breed that is going to be in great demand in the years to come. The senior bankers could well be allowed to specialize on project managements and control mechanisms, so that the banks don't lose their experience and expertise. When these groups start jelling together, the customers would well start heaving sighs of relief in having struck the right combinations. Until then, the steam let out by dissatisfied customers could add to global warming in no small means, rather justifiably too.