RBI Governor: Please Stop Banks Fleecing Customers and Depositors!

First there is this article by Dr Yerram Raju : Is SBI heading for bankruptcy?

Customers of State Bank of India (SBI), especially in south India, are forced to ask whether SBI is headed for bankruptcy as they find 99% of the automatic teller machines (ATMs) shut down and all branches declining withdrawals from the depositors’ savings account beyond a limit. Bank branches are refusing to honour cheques drawn on them, either their own or on third party, in spite of sufficient balance in the account. To top it, the bank’s branches refuse to give written objection for returning the cheque across the counter. 
He narrates from his own experience and perhaps overstretches it. But it will be good to read about more SBI customers. Are they facing similar troubles?
Whatever it may be, overall message is clear. Banks have lost their basic sense of serving the customer. We are back to earlier days when banks just didn;t care. Once again, Indian banks seem to have become way too arrogant and shunning the customers. Their pricing has become opaque and are just charging all kinds of things.
Second, there is detailed memorandum to RBI chief against these practices:
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.
Hopefully banks wake up..

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