Consumer Issues
RBI Governor: Please Stop Banks Fleecing Customers and Depositors!
A group of bank customers, consumer activists, policy watchers, bankers, trade unions and non-governmental organisations (NGOs), has requested the Reserve Bank of India (RBI) to urgently change policies to ensure that banks treat bank customers fairly. 
 
In a Memorandum sent to RBI Governor Dr Urjit Patel, they said, "We are disturbed at the unfair treatment that bank customers suffer in the form of frequent, arbitrary and one-sided increase in banking charges, or the refusal of banks to automatically pass on contractual benefits such as lower interest to those with floating rate home loans, or the rampant mis-sellling of third-party products such as insurance."
 
 
"The RBI as the banking regulator has been proactive in improving the customer service rendered by banks. However, the RBI has not taken banks to task on the many customer-unfriendly practices that are increasing with impunity. Over the years, the RBI has remained silent on several anti-depositor actions of banks. The Banking Ombudsman's rulings also tend to side with banks, making no attempt to observe the pattern of complaints which would amply bring out rampant mis-selling of insurance and wealth management products. We have identified some specific areas and request RBI's intervention to take corrective steps after engaging with customers," the Memorandum says.
 
 
The Memorandum is sent to the Prime Minister, Finance Minister and Secretary of Financial Services as well. Those who have signed and endorsed the Memorandum, include, RN Bhaskar (Free Press Journal), Dhirendra Kumar (Value Research), Abhay Datar (Mumbai Grahak Panchayat), Shubha Khandekar, Harsh Vardhan Roongta, Dolphy D'souza (Police Reforms Watch), Mahua Ghose, Partha Mansukhani (Public Concern for Governance Trust -PCGT), Lalita Joshi (All India Bank Employees Association -AIBEA), Raj Vaidya (Central Bank Employees' Union -CBEU), Adv Bapoo Malcolm, Sucheta Dalal and Debashis Basu (Moneylife Foundation), S Saroja (Citizen consumer and civic Action Group -CAG, Chennai), AV Shenoy (Rashtriya Matdata Manch) and Yogesh Sapkale (Moneylife), among others. 
 
 
Based on the Memorandum, Sucheta Dalal, Founder-Trustee of Moneylife Foundation has started an online petition on Change.org. Here the link to sign the Petition online
 
Here is the copy of the Memorandum
 
 
 

User

COMMENTS

Richard Armond

3 months ago

RBI has always bailed out SBI. RBI loves corrupt nationalized banks. Especially SBI. They always print more notes and supply to SBI, let the rupee devalue heavily and they let common man suffer as long as SBI's corrupt management is safe. So do not worry, people. SBI will never fail.

Richard Armond

3 months ago

RBI has always bailed out SBI. RBI loves corrupt nationalized banks. Especially SBI. They always print more notes and supply to SBI, let the rupee devalue heavily and they let common man suffer as long as SBI's corrupt management is safe. So do not worry, people. SBI will never fail.

Balaji Kasal

3 months ago

Hi,

I wonder does RBI too care for bank customers? It might think itself as Banking regulator... Not customer centric.

Since last months I am requesting SBI bank to move my home loan to MCLR regime without any charges. Raised compliant till SBI Principal Nodal Officer. Till date no response... forget about action.

On 7th March 2017 raised compliant to RBI on Mumbai Office of the Banking Ombudsman. No response.... Then raised compliant to RBI against its BO for no response. Received a auto mail saying - 'We acknowledge having received the above complaint letter and we will revert to you in due course.'
No date for resolution. No contact person.

Finally today sent mail to Moneylife Foundation for help to put in right forum. I am sure my concern would be take up to right forum/people.

Thanks.

REPLY

Richard Armond

In Reply to Balaji Kasal 3 months ago

Use RBI's SCORES online form to file complaint. You will definitely get a response.

Deepak Narain

3 months ago

I am a Senior Citizen. My main problem is that the ICICI Bank does not accept Form 15H online though some others do. If they too start, it will be a great relief to me and many others in my situation.

SuchindranathAiyerS

3 months ago

Indian Banking: A blend of Indian Governance (unaccountable profligacy, incompetence and corruption) and Ivy League Banking (Junk Bonds, Non Performing Assets and Insurance rip offs):

As per the over arching and Constitutional principles of the Indian Rapeublic, the good are made to suffer to benefit the wicked.

REPLY

Richard Armond

In Reply to SuchindranathAiyerS 3 months ago

Yes totally agree

Unnikrishnan Nair B C

3 months ago

I had sent a mail regarding this petition through change.org. Just because some so called big wigs have signed the memorandum whatever is said in it need not become true. The services from a bank, which is a commercial organisation, cannot be expected to be free. Does the site carry ads on it free of charge? One may argue that one has been forced to go to the banking channel and then he is being charged. The country's monetary policy framed by rbi needs to be honoured by everybody.

REPLY

MDT

In Reply to Unnikrishnan Nair B C 3 months ago

Thanks for your comment. We request you to carefully read the Memorandum and the text of the article once again. Nowhere it is mentioned that all should be 'free', as you stated. What bank consumers need is a fair treatment and no frequent, arbitrary and one-sided increase in banking charges, or the refusal of banks to automatically pass on contractual benefits such as lower interest to those with floating rate home loans, or the rampant mis-sellling of third-party products such as insurance. But may be for you, this unfair treatment towards consumers by banks falls under 'services' and nobody should complaint.

Jaijawan Jaikisan

3 months ago

Don't spread panic in people. This could be temporary situation to complete the merger process not a sign of bankruptcy (also as march 31st is getting closer). It might also be doing investigation on influx of fake currency into its system.

Idea Cellular, Vodafone India announce merger
New Delhi, In one of the biggest merger in the telecom space, Vodafone India and Aditya Birla Group-promoted Idea Cellular on Monday announced the much-awaited amalgamation.
 
Idea Cellular in a regulatory filing on Monday said, its Board of Directors "have approved the scheme of amalgamation of Vodafone India Limited and its wholly owned subsidiary Vodafone Mobile Service Limited with the company (Idea)."
 
Vodafone will own 45.1 per cent of the combined company, Idea said in a statement.
 
"The Aditya Birla Group will then own 26 per cent and has the right to acquire more shares from Vodafone under an agreed mechanism with a view to equalising the shareholdings over time," it added.
 
"For Idea shareholders and lenders who have supported us thus far, this transaction is highly accretive, and Idea and Vodafone will together create a very valuable company given our complementary strength," said Kumar Mangalam Birla, Chairman, Aditya Birla Group.
 
"The combination of Vodafone India and Idea will create a new champion of Digital India founded with a long-term commitment and vision to bring world-class 4G networks to villages, towns and cities across India," said Vittorio Colao, Chief Executive, Vodafone Group Plc.
 
"The combined company will have the scale required to ensue sustainable consumer choice in a competitive market and to expand new technologies - such as mobile money services - that have the potential to transform daily life of every Indian," he added.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
 

User

COMMENTS

SRINIVAS SHENOY

3 months ago

It is an informative write up of the proposed merger of the two telecom companies.

Satheesh Op

3 months ago

Badly researched article

Satheesh Op

3 months ago

Badly researched article

Robs T

3 months ago

Stop blaming banks man, rotate the cash which every one is doing Pooja at their homes. Stupid articles stipids, blaming is always easy man.

The First Brick in the Wall between US & Mexico

President Donald Trump's administration announced a USD 600 million bidding contest late Friday night to kick off construction of The Wall, a towering physical barrier between the United States and Mexico.

 

The process will start with little walls — an unknown number of barriers of concrete and other materials that will serve as models for the bigger wall, which Trump made central to his political campaign.

 

Construction will proceed with unusual haste. Companies have just two weeks to submit proposals. Finalists will make a two-and-half hour long oral presentation to the U.S. Customs and Border Protection agency, which is overseeing the contest. Winners will be announced by late May.

 

Steven Schooner, a professor of government contracting at George Washington University, tweeted that the process was "extremely/uniquely complicated (and confusing)."

 

But CBP officials said the approach was designed to get the best value for the government.

 

"Through the construction of prototypes, CBP will partner with industry to identify the best means and methods to construct border wall before making a more substantial investment in construction," the agency said in a statement.

 

The bidding documents released Friday provide important clues as to what the Trump administration hopes to erect on the 1,200 miles of border with no physical barriers. Some 650 miles are already fenced.

 

The little walls are supposed to be tall. They should be "physically imposing in height" — 30 feet is preferred, though 18 feet is acceptable. However, the prototypes will be as little as 30 feet long, and cost as little as $100,000.

 

The little walls are supposed to be strong. They must be able to withstand attacks from "sledgehammer, car jack, pick axe, chisel, battery operated impact tools, battery operated cutting tools, Oxy/acetylene torch" for at least one hour, preferably four. They should also be able to span 45 degree slopes, and block tunneling. Contractors will build prototypes of concrete — Trump's preferred material — but also other materials that will allow visibility between the two sides. Once the government has determined a model, the prototypes may be demolished.

 

Finally, the little walls are supposed to be pretty — at least on the U.S. side of the border. The agency wants the walls to be "aesthetically pleasing" so that the color and texture blends into the environment on the "north side of the wall." There is no similar language for the Mexican side of the wall.

 

In addition to the tough building conditions, the agency clearly understands another difficulty will be political: Interested builders are urged to discuss their experience in "executing high profile, high visibility and politically contentious" construction projects.

 

Immigration activists are expected to protest construction of the wall, deploying tactics learned during the long, bitter protests over construction of the Dakota Access Pipeline near the Standing Rock Sioux Reservation in North Dakota. The bid calls for companies to hire their own private security contractors to protect their projects.

 

The final cost of the wall — and even whether it will be built — is a matter of debate. Trump has said he anticipates the final bill to be from $10 billion to $12 billion. The Department of Homeland Security has suggested a cost of around $21 billion. Trump's proposed budget has called for $2.6 billion to begin construction.

 

In Congress, some Republicans and many Democrats have opposed spending billions for an untested and possibly ineffectual border barrier. Trump has said he will force Mexico to pay for the wall. The Mexican government has rejected the possibility.

 

What is clear is that the Trump administration's methods will favor large, experienced government contractors with demonstrated experience in big construction projects. Companies such as KBR, Tutor Perini Corp., Parson Corp. and Fluor Corp. have all indicated an interest in building the edifice.

 

At the same time, the agency has asked bidders to explain how they will meet the agency's goals to deliver contracts to small, minority and veteran owned companies. Customs and Border Protection aims to pay 38 percent of its contract to small business, 5 percent to woman-owned firms and 3 percent to companies owned by disabled veterans.

 

In practice, the likely outcome is a few large government contractors overseeing a small army of subcontractors to build the wall.

 

More than 700 companies signed up for notifications about the building the wall, including more than 140 minority-owned firms — about 20 percent of the total. It is unclear how many of the firms possess the necessary experience and ability to participate in the bid.

 

ProPublica is a Pulitzer Prize-winning investigative newsroom. Sign up for their newsletter.

 

 

 

 

 

 

 

 

 

User

COMMENTS

SRINIVAS SHENOY

3 months ago

I feel if we too can create such barriers on our borders much of the present infiltration,smuggling, cross border terrorism etc. can be averted. The cost for such a construction in our case will be prohibitive.

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