Wednesday, April 23, 2014

Bank Staff Face Anger Of Customers For Unwarranted Charges

A Naked Truth: ( Collected From Facebook)-This reveals how banks in general levy accumulated charges on customers for various reasons and cause loss to customer for none of his fault. RBI has in recent past suggested banks not to levy service charges for non -maintenance of minimum balance by customers. Banks have not complied with this guideline issued by RBI. 

If a customers do not operate his account for any reason for five or ten years , he will be punished with penalty of thousands of rupees. On the contrary banks have been marketing Zero Balance Account.This discriminatory behavior of banks cause valid and genuine anger to customer and the following real story is the story of several customers of banks, specially private banks whose charges are unbearable. 

Real Story which is posted by someone on Facebook

Today a customer came and deposited Rs 40000, and when he saw his balance it shows 37000, when we inquire , we found it was due to non maintenance of minimum balance for 5 years. Now he started quarreling and after some arguments, he left. 

Then, he again came back with local Mafia type person at 4.30 PM. He (Mafia) went directly to the Branch Manager cabin, threw Passbook to the BM, and start abusing him. After some argument, he hold the collar of our BM n asked him to go out , and said I will kill u... after that our whole staff went to them, after some talks, our BM ask Officer to give statement to them, in between they both keep abusing bank staff, 

Our Officer asked them to quiet, then they start abusing our Officer, I stood up and ask security guard to take that person out of Gate. He kept humiliating us, so our Guard called the Police, and Police came and took both to the Police Station, 

Our BM told whole incident to DGM, a very nice answer from him to finish this all, and asked us to say sorry to them. But our BM and whole staff went to Police Station, U know what Policemen were friends of them n also local SP leader called Police Station to handle us.

 After long arguments, No FIR was lounged by Police, and that Mafia in front of all policeman abused us and said u all will have to face severe consequences, n I will make sure that u l b terminated.

Is it nice? 

See where we are.. no protection nothing, either we have to face severe consequences from our Management or will face severe beating very soon from local Mafias.. 

Thanks n bhai ho sake to bank mat join karo,,, From Syndicate Bank Dadri Gautam Buddh Nagar, suggestion welcomed 22/04/2014

No penalty for bank balance below minimum limit: RBI to banks-Times of India -01.04.2014

MUMBAI: Customers may soon be spared penalties for non-maintenance of minimum balances in savings accounts with the Reserve Bank India asking banks to cut down services on low-balance accounts and do away with fines. Banks however say the new regime will lead to higher charges on services for customers. 

In its first bi-monthly policy on Tuesday, RBI said that it proposes to frame comprehensive consumer protection regulations based on domestic experience and global best practices. "Banks should not take undue advantage of customer difficulty or inattention. Instead of levying penal charges for non-maintenance of minimum balance in ordinary savings bank accounts, banks should limit services available on such accounts to those available to basic savings bank deposit accounts and restore the services when the balances improve to the minimum required level," RBI said. 

Many account holders who maintained dormant accounts, which were short of the Rs 10,000 insisted on by most private banks, found that their balances had vanished as the bank had deducted a penalty every quarter for not maintaining adequate balance.

Link Times Of India

RBI: Banks must not punish non-maintenance of minimum balance-Hindustan Times-02.04.2014

In major consumer protection initiative the Reserve Bank of India (RBI) on Tuesday asked banks not to levy penal charges on customers who don't maintain a minimum balance in basic savings bank accounts.
"Instead of levying penal charges for non-maintenance of minimum balance in ordinary savings bank accounts, banks should limit services available on such accounts to those available to basic savings bank deposit accounts and restore the services when the balances improve to the minimum required level," RBI Governor Raghuram Rajan said in first bi-monthly monetary policy statement for 2014-15 in which he kept interest rates unchanged.
Some bankers see it has a good move.
“The direction is very clear that you create a set of accounts where you don't charge for maintaining a balance, but you will be allowed only these services. For any additional services, probably you have to pay," said KR Kamath, chairman and managing director of Punjab National Bank.
Others feel the customers could end up paying more if the banks were allowed to charge for services.
“The alternative is then you will charge for services such as cheque books and ATM transactions. If I start charging for these services, you will actually end up paying more to the bank," said Aditya  Puri, MD and CEO of HDFC Bank.

Uniform Accounting Process For ARCs

RBI prescribes uniform accounting norms for asset reconstruction firms-Business Standard

The new norms will be effective from accounting year 2014-15
The Reserve Bank of India (RBI) prescribed uniform accounting standards for asset reconstruction companies(ARCs) for acquiring non-performing loans, recognising revenue and management fees to ensure common treatment for firms.

The new norms will be effective from accounting year 2014-15. These recommendations are based on the views of the Key Advisory Group (KAG) constituted by the Centre on ARCs, the RBI said on Wednesday.

The expenses for diligence before acquiring financial assets should be charged immediately by recognising these in the profit and loss statement for the period in which such costs are incurred, the RBI said.

Referring to booking income, the RBI said yields should be recognised only after fully redeeming the entire principal amount of security receipts and instruments issued to investors. Management fees may be recognised on an accrual basis.

Valuation of security receipts
Where underlying cash flows are dependent on realisation from non-performing assets, security receipts (SRs) can be classified as available for sale. Hence, investments in SRs may be aggregated for arriving at net depreciation or appreciation of investments under the category.

ARCs should provide for net depreciation. Net appreciation should be ignored. The provisions for net depreciation should not be reduced on account of net appreciation.

All the liabilities due within one year should be classified as "current liabilities". Also, assets maturing within one year, along with cash and bank balances, should be treated as "current assets".

The capital and reserves will be treated as liabilities on the liability side while investment in SRs and long-term deposits with banks will be treated as fixed assets on the assets side, the RBI added.

RBI Suggest Centralised Payment System

RBI panel moots centralised bill payment system-Business Standard

The system will provide accessible services across all parts of the country through a 
strong network of operational units/agents who will ensure in making this service accessible in urban as well as rural areas
An RBI panel today made a case for centralised bill payment system catering to different financial instruments, like cheques, debit cards and mobile banking.

                                                     "In order to ensure uniform and efficient implementation of operations of the bill payments system in the country, standards have to be set for process standards, business standards for establishing the relationship between all entities, and information exchange standards for transactions as well as settlements," it said.

The RBI has sought comments on the Report of the GIRO Advisory Group till May 25.

This centralised bill payments system will provide accessible services across all parts of the country through a strong network of operational units/agents who will ensure in making this service accessible in urban as well as rural areas.

The report further said the standard setting role/ function has to be distinct from the operational aspects of the bill payments system.

"It is, therefore, recommended that the bill payments system follow a 'tiered structure' - the standard setting functions being carried out by a central body / agency (to be named as Bharat Bill Payment System - BBPS) with actual operations being carried out by multiple entities," it added.

Currently, the payment system in the country offers a variety of payment instruments to the public, like cheques and various e-payment modes in the form of credit cards, debit cards, pre-paid payment instruments (including mobile wallets) issued by both banks and authorized non-bank entities.

In the context of bill payments, the payment delivery channels available to customers and consumers include bank branches, business correspondents, ATMs, mobile banking, internet banking, among others.

ATM Card Data Stolen By Masked Gangs

Caught on video: how masked gangs are stealing data at Mumbai ATMs

Vijay Kumar Yadav, Hindustan Times  Mumbai, April 22, 2014

The masked gang of ATM thieves, involved in stealing card data at an ATM kiosk in Agripada, was also involved in at least two more similar cases at Parel and Bhandup, respectively.

HT investigation has revealed that at least 73 persons lost over Rs. 17 lakh of their hard-earned money as the fraudsters emptied their accounts with cloned ATM cards prepared by the stolen data.

The Kalachowky police on Tuesday told HT that the gang plundered information from an ATM kiosk in Parel between the same period (March 26 to 30), before they targetted an Union Bank of India's ATM kiosk near Nair Hospital at Agripada. While they managed to steal information of 17 cards at Agripada, as many as 23 persons card data was stolen from the Parel kiosk. Prior to that in February this year, the gang had taken away data of 33 cards, given to customers by a nationalised bank, from an ATM kiosk in Bhandup.
In all the instances, the thieves had masked their faces with surgical masks (with baseball caps) while going about their innovative con act with a view to conceal their identity. The withdrawals were made at ATM booths in Ghodbunder-Thane and Kalyan, source added.
DCP zone III Vinayak Deshmukh said, “We are in process of getting the CCTV feed of all those ATM booths which was hacked into and used by crooks to withdrawn money, from the respective banks.”

Tuesday, April 22, 2014

Late Sitting Is Not Good Performance


Mail sent by Narayan Murthy to all Infosys staff:

1-If you are working more than 9 hr then dont need to join Infosys.

2-If you are working on saturday and sunday dont join infosys (for IT).

3-Whatever time define in your task complete within time.

Fire all people who fall in criteria 1,2,3.

It’s half past 8 in the office but the lights are still on… PCs still running, coffee machines still buzzing… And who’s at work? Most of them ??? Take a closer look…

All or most specimens are ?? Something male species of the human race…

Look closer… again all or most of them are bachelors…

And why are they sitting late? Working hard? No way!!! Any guesses??? Let’s ask one of them… Here’s what he says… ‘What’s there 2 do after going home…Here we get to surf, AC, phone, food, coffee that is why I am working late…Importantly no bossssssss!!!!!!!!!!!’

This is the scene in most research centers and software companies and other off-shore offices.

Bachelors ‘Passing-Time’ during late hours in the office just bcoz they say they’ve nothing else to do… Now what r the consequences…

‘Working’ (for the record only) late hours soon becomes part of the institute or company culture.

With bosses more than eager to provide support to those ‘working’ late in the form of taxi vouchers, food vouchers and of course good feedback, (oh, he’s a hard worker….. goes home only to change..!!). They aren’t helping things too…

To hell with bosses who don’t understand the difference between ‘sitting’ late and ‘working’ late!!!

Very soon, the boss start expecting all employees to put in extra working hours.

So, My dear Bachelors let me tell you, life changes when u get married and start having a family… office is no longer a priority, family is… and That’s when the problem starts… b’coz u start having commitments at home too.

For your boss, the earlier ‘hardworking’ guy suddenly seems to become a ‘early leaver’ even if u leave an hour after regular time… after doing the same amount of work.

People leaving on time after doing their tasks for the day are labelled as work-shirkers…

Girls who thankfully always (its changing nowadays… though) leave on time are labelled as ‘not up to it’. All the while, the bachelors pat their own backs and carry on ‘working’ not realizing that they r spoiling the work culture at their own place and never realize that they would have to regret at one point of time.

So what’s the moral of the story??
* Very clear, LEAVE ON TIME!!!
* Never put in extra time ‘ unless really needed ‘
* Don’t stay back unnecessarily and spoil your company work culture which will in turn cause inconvenience to you and your colleagues.

There are hundred other things to do in the evening..

Learn music…..

Learn a foreign language…

Try a sport… TT, cricket………..

Importantly,get a girl friend or boy friend, take him/her around town…

* And for heaven’s sake, net cafe rates have dropped to an all-time low (plus, no fire-walls) and try cooking for a change.

Take a tip from the Smirnoff ad: *’Life’s calling, where are you??’*

Please pass on this message to all those colleagues and please do it before leaving time, don’t stay back till midnight to forward this!!!




Following Blogs are Equally important for all serving employees 


Employee vs Boss - Awesome Conversation..

An employee goes to his boss to discuss his appraisal. Boss starts asking questions:

Wednesday, March 13, 2013

Do Not Keep Your Career Above Your Personal Life Says Former CEO of Lehman Brothers

'I do not wish that for anyone': Woman, 47, who was top exec at Lehman Brothers tells of her regret at putting her career ahead of her hopes to become a mother

Compare Your Pay AND Your Children

(Read evil effects of late sitting in bank  which are given below at foot note )

SON: "Daddy, may I ask you a question?"
DAD: "Yeah sure, what is it?"
SON: "Daddy, how much do you make an hour?"
DAD: "That's none of your business. Why do you ask such a thing?"
SON: "I just want to know. Please tell me, how much do you make an hour?"

RBI Stops Foreign Borrowings By Indians Companies For Non-Business Linked Purposes

RBI tightens rules on bank guarantees to overseas units of Indian firms-LiveMint

Directive comes after banks started extending guarantees and credit facilities that are not fund-based for purposes other than those related to the business
Mumbai: The Reserve Bank of India (RBI) on Tuesday barred banks from issuing guarantees to overseas units of Indian companies for purposes not connected with their business.
RBI’s directive came after banks started extending guarantees and credit facilities that are not fund-based for purposes other than those related to the business.
“It has been observed that banks are extending non-fund based credit facilities like guarantees/stand-by letter of credits/letter of comforts, etc.,...for purposes which are not connected with their business, rather, in certain cases, used to avail foreign currency loans for repayment of rupee loans,” RBI said.
RBI said banks cannot issue guarantees or stand-by letters of credit for the purpose of raising of foreign currency loans on behalf of overseas units of Indian companies.
Banks till now were permitted to extend fund and non-fund based credit facilities to overseas joint ventures and subsidiaries of Indian companies up to 20% of their capital.
Banks should also ensure effective monitoring of the end use of such facilities and its conformity with the business needs of such entities, RBI said.
RBI has also barred companies from repaying their rupee loans availed from domestic banking system through external commercial borrowings extended by overseas branches of the banks, saying that the risk remains within the Indian banks.
Noting that some exporters are using export advances, received through guarantees issued by Indian banks for repayment of loans availed from Indian banks, RBI said it is a violation of prudential norms.

Public Sector Bank VS Central Government

Public Sector Banks vis-à-vis the Central Government-B Sri pannvalan

How can public sector banks be called as government institutions?

1.    All public sector banks acquired the public sector characteristic by virtue of a special act passed by the Indian Parliament.
2.    Central Government directly and indirectly through other PSUs like LIC of India etc. holds majority of the shareholdings in public sector banks.
3.    Several public sector banks are bankers to the government - Central or State - either as a lender or a custodian of government funds. Public sector banks have subscribed to several Government Promissory Notes, Treasury Bills and Bonds and Debentures issued by State/Central PSUs.
4.    Public Sector Banks have established and manage Currency Chests throughout the country on behalf of RBI, thus playing a vital role in currency issue and management (printing is the sole prerogative of RBI).
5.    Public Sector Banks run clearing houses throughout the country, thereby helping the government manage the nation's economy, trade and commerce.
6.    Even today, Public Sector Banks have the majority share of the public savings (more than 77%), enjoying the confidence and trust of most of the common citizens.
7.    But for the low wages, public sector banks are one of the dream destinations for thousands of aspiring youth in the country.
8.    Public Sector Banks as a group are the second largest employer, next only to Indian Railways, providing employment to lakhs of unemployed youth.
9.    Public Sector Banks as commercial entities and the staff working in them are one of the major contributors to government's kitty, as they are one of the few honest tax paying groups.
10.  Under the guidance and supervision of RBI, public sector banks play a vital role in managing the precious foreign exchange assets of the country.

Additional points to corroborate our stand are:
  1. Banking Regulation Act, 1949 and Negotiable Instruments Act, 1881 are two important Acts of Union of India, which broadly govern the functioning of general banking in India.
  2. Banking policies and operational guidelines are broadly designed by Department of Financial Services, Finance Ministry, Government of India and the banking industry is monitored and controlled by the government, in association with RBI.
  3. Bank Holidays are decided by the respective State Governments and published in official gazettes.
  4. Public Sector Banks issue Bank Guarantees on behalf of ‘President of India’.

  1. In 1979, Central Government had accepted Pillai committee recommendation on the point that the Bank officers’ salary will be equal to that of Class 1 officers.  By doing this, the central government has indirectly admitted that public sector bank employees are to be treated on equal footing with the government employees.
  2. Central government uses PSBs for various purposes like Tax collection, implementation of socio-economic policies of the nation viz. targeted lending (priority sector lending), distribution of subsidies and grants, financial inclusion etc.
  3. Bank employees are invited to apply for vacancies on deputation basis in institutions like DRT, CBI, FIU-IND, IBA etc.
  4. Bank staff are drafted for election duties by Election Commission of India.
  5. Bank Managers are empowered to attest certain documents for limited purposes, by the government.
  6. Successive Finance Ministers have acknowledged the fact that only because of the public sector banks in India, we as a nation could successfully insulate ourselves against the tribulations that jolted the South East Asian Countries in the late 1990s, the global recession that turned the economy of several American States topsy-turvy in 2008-10 and the very recent crisis that enveloped the European nations like Spain, Greece, Italy etc.
  7. Last but not the least, public sector banks generate very substantial revenue for the Union Government, by way of issuance of dividend on their shares.
So, what are we waiting for?  Why shall we depend on the bipartite negotiation and settlement for our wage increase?  We can file a PIL case in any High Court for willful delay of the wage revision by both IBA and UFBU and demand immediate constitution of a separate Pay Commission for Public Sector Banks or demand ourselves to be brought under the Central Pay Commission on a par with central government employees.

Date:22-01-2014                                                                                                           pannvalan