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BREAKING NEWS ""**If we want PSU bank to compete with Pvt bank ---Give them a break Saturday first****Outcome of Today’s meeting with IBA - 31.01.2023*********

Wednesday, March 31, 2021

WHY SHOULD YOU APPOINT A ‘BENEFICIAL NOMINEE’ INSTEAD OF A ‘NOMINEE’ FOR LIFE INSURANCE?

May be all of us know the meaning of a nominee of the life insurance policy. Nominees of insurance policies are merely designated trustees acting as receivers of insurance proceeds on behalf of the policyholder’s legal heirs. In the other words, while the insurance company has to hand over the death benefit to the nominee, other legal heirs can stake their claim to the amount. But, sometimes there can be multiple claims made, which can result in problems for the stake holders involved. The above situation left some scope for disputes.

The Insurance (Amendment) Act 2015 addressed such chances of disputes among the family member over the death benefits of policyholders. The act has created a new category of nominee called “beneficial nominee”.  The beneficial nominees are essentially beneficiaries-cum-nominees for the policy. These beneficial nominees should be the close relatives of the policyholder such as parents, spouse, and children.  As per the amended Insurance Act, once any of the close relatives is nominated in the policy, as a beneficial nominee, he/she will be the undisputed final-recipients of the claim and enjoy the amount even if other legal heirs attempt to stake their claims. No further judicial proceedings are required to prove his/her right to receive the money. The new clause also makes it simpler for policyholders to specify multiple nominees (close relatives) and their share in the proceeds. In case the nominee is a minor, the policyholder is required to appoint a guardian to receive the money on behalf of the minor and hold it to the benefit of the minor nominee.

The new measure under the insurance (amendment) act is applicable even for policies issued before the Act came into effect.  A policyholder can now choose between appointing a regular ‘nominee’ or a beneficial nominee. While the earlier category of regular ‘nominee’ still exists, once the policyholder specifies a beneficial nominee, a regular nominee becomes redundant. The policyholder can change the nominee any number of times. For that he/she has to submit a Nomination Change Form to the Insurance Company duly signed mentioning the Nominee’s name, Address, Date of birth, Relationship with the policyholder, etc.

ORIGINAL ARTICLE PUBLISHED IN BANKING SCHOOL SITE

Why is the Indian financial year is from April to March?.

Generally, a calendar year starts in January and ends in December. But why the Indian financial year starts on April 1 and ends on March 31. Still, the exact reason is known but experts suggest the following facts may be the reason.

British Method

Before the arrival of the British, Indians followed a different financial year. April to March financial year is the practice of the British and they followed the same in India. After independence, India continued the same method.

Agricultural country.

India is an agricultural country and most of the people are involved in agriculture. The main sources of income depend on the yield harvested in January, February, and March. So in March, the government get an idea of whether the revenue will increase or decrease.

Festival sales.

The important festivals of India like Diwali, Navratri, and Christmas come from October to December. These festivals impact huge sales on retailers and wholesalers. And there is very less time available for preparing accounting documents for a year in the festival time. Doing in hurry may reflect some error so to avoid this may be March is considered as year-end.

Income Tax Act.

Income Tax Act came into force on April 1, 1962. So April 1, could be followed as the first day of the financial year.

DA FOR BANKER MAY BE DECREASE MINIMUM 5 SLAB AND MAXIMUM 11 SLAB FROM MAY 2021

 Expected DA Calculation Updated on 31.03.2021 on the basis of CPI for the month Jan'21 and of Feb'21 that announced on 31.03.21 (increase of 0.80 points as per revised base year 2016 (base year changed from Oct 2020) with assumptions of CPI for next month i.e. Mar. 2021 as under:-
  1. On assumptions if there is an increase of One point of CPI in Mar'21. Keeping in view on going increase in fuel price and prices of other commonly required items despite to this in this situation the expected (tentatively) decrease in DA Slabs would be 5 slabs and the total tentatively revised DA slabs would be 847 slabs i.e. 84.70% on existing pay and in terms of 11BPS total tentatively revised DA slabs would be 369 i.e. 25.83%.
  2. On assumptions if there is an increase of half point CPI in both the next month despite to this in this situation the expected (tentatively) decrease in DA Slabs would be 8 slabs and the total tentatively revised DA slabs would be 844 slabs i.e. 84.40% on existing pay and in terms of 11BPS total tentatively revised DA slabs would be 366 i.e. 25.62%.
  3. On assumptions if there is no change CPI for the month of Mar'21, in this situation the expected (tentatively) decrease in DA Slabs would be 11 slabs and the total tentatively revised DA slabs would be 841 slabs i.e. 84.10% on existing pay and in terms of 11BPS total tentatively revised DA slabs would be 363 i.e. 25.41%.

Sunday, March 28, 2021

Central employees to get three installments of D.A. from July 2021

Central employees to get three installments of D.A. from July 2021

 Good times likely to come for central Govt. employees and pensioners. As per sources, Govt. is going to release D.A./D.R for employees and pensioners from July 2021 onwards.

Earlier in early 2020, Govt. freezed D.A. and installment payable on January 2020, July 2021 and January 2021 kept on hold. But it promised to pay the installments once the ban is lifted and there will be no arrears.

January 2020 installment was 4%, announced earlier but the other two installments were non announced. The other two installments are calculated based on labour bureau data are 4% each (as calculated by our team).

So the govt employees are likely to get a hike of 12% in total from July 2021, if sources are to beleive.

Let us keep finger crossed for official announcement.

In bank pension updation wholly dependent on LUNGIWALA's mercy.

LUNGI Dance in banks Over employees with a begging bowl in one hand and pensioners awarded with bowls in both the hands.........

Pension is an integral part of service conditions. Revision is universally accepted rule but in Banking it is wholly dependent on LUNGIWALA's mercy.

Not To Have Revision Is A Historical Achievement Of The Most Militant Unions of Banking industry !. 

All agreements in Banks have had been periodically reviewed and improved but Pension Agreement signed on 29.10.1993 remains untouched ever since it came into existence. 
Wages stand revised on 5 occasions since implementationo of Pension Scheme, but Pension not once ! 

It were pensioners, now considered Dead Wood, who built the bank unions in their primitive days. But, they are dead wood. Nobody is worried about them.

Saturday, March 27, 2021

ED raids ex-UBI chairperson Archana Bhargava in disproportionate assets case

 

The Enforcement Directorate (ED) on Friday conducted raids at two premises belonging to former United Bank of India (UBI) chairperson Archana Bhargava in connection with its investigation into money laundering charges against her. According to a statement, the central agency started the probe on the basis of a First Information Report (FIR) filed by the Central Bureau of Investigation (CBI) against Bhargava in a disproportionate assets case. She had served as the bank’s chairperson and managing director from April 23, 2013, to February 20, 2014.


Bhargava, according to the FIR, collected disproportionate assets to the extent of 3.63 crore when she was in a senior position in several public sector banks from 2004 to 2014. Before joining UBI, Bhargava had worked as Canara Bank’s executive director from 2011 to 2013.

“The searches were carried out by the ED to trace the proceeds of crime and to unearth the documentary evidence showing acquisition, routing, layering and projection (as legitimate assets) of the said proceeds of crime amounting to 3.63 crore, leading to commission of the offence of money-laundering," the agency said in a statement. They said it recovered “certain incriminating documents and electronic evidences pertaining to aforesaid further reinforcing the case against Archana Bhargava” during the

ED is also investigating the former UBI chairperson in another case under the Prevention of Money Laundering Act, 2000, with regard to the complaint filed by CBI in 2016. It pertains to using shell companies based in Kolkata to layer the proceeds of crime in the accounts of Rank Mercantile Private Limited (RMPL), a firm owned by Bhargava’s husband and son.

CBI, which reviewed her income between 2004 and 2014 when she worked in senior positions at various public sector banks, alleged Bhargava during that period amassed assets worth 4.89 crore and incurred an additional expenditure of 1.47 crore against her known income of 2.73 crore.


Punjab & Sind Bank declares IL&FS account as fraud with Rs 399 crore outstanding

Public-sector Punjab & Sind Bank on Thursday said it has declared its IL&FS NPA account with Rs 399 crore outstanding loan as fraud and has reported it to the Reserve Bank.

The NPA account Infrastructure Leasing & Financial Services Ltd (IL&FS) with outstanding dues of Rs 399.31 crore has been declared as fraud, the bank said in a regulatory filing.

The bank said it has reported it to the RBI on Thursday as per regulatory requirement.

"Further, the account has been fully provided for as per existing RBI norms," it said.

 

Former RBI deputy governor K C Chakrabarty passes away

Dr Kamalesh Chandra (KC) Chakrabarty, one of the most forthright and honest deputy governors of Reserve Bank of India (RBI), passed away in Mumbai on Friday morning following a massive heart attack. He was 68. Dr Chakrabarty, a banker, who strived hard to protect consumer rights in banking, was a Trustee of Moneylife Foundation. 



 
Considered outspoken, Dr Chakrabarty was well-known for his contributions in the field of banking regulation and supervision, championing of rights of bank customers, microfinance institutions, SMEs and restructuring of India's regional rural banks (RRBs). He was also known for his contribution towards financial inclusion and financial literacy both in India and abroad

Dr Chakrabarty often said that it took him several years to have some obvious pro-customer decisions implemented. One of these was to bar the pre-payment penalty that banks impose on home loan borrowers, to prevent them from switching to other borrowers. Since banks discriminated against existing borrowers by offering lower interest to new customers, the scrapping of foreclosure charges levelled the playing field for customers. He also stopped banks lending below their base rate and, more recently, from fooling customers with fake zero-interest loan offers during festivals.

Thursday, March 25, 2021

Nabard staff strike on March 30, seek pension updation

Demand parity with counterparts in RBI

Employees and officers of the National Bank for Agriculture and Rural Development (Nabard) under the banner of the United Forum of Officers, Employees and Retirees of Nabard have announced a one-day strike on March 30 to press a list of demands including updation of pension and other service conditions.

The demand list includes parity with the Reserve Bank of India (RBI) since Nabard employee service conditions, including superannuation, are patterned alone RBI lines since inception; another option for Contributory Provident Fund (CPF) optees to defined pension; full pension after 20 years of service; and pension calculation to be based on the average of last 10 months' pay, or last pay, whichever is beneficial, among others.

Former head honchos write to FM

Former Nabard Chairpersons and Managing Directors including P Kotiah, PVA Rama Rao, MVS Chalapathi Rao, Ranjana Kumar, YSP Thorat, and Umesh Chandra Sarangi have written a signed request to the Union Finance Minister Nirmala Sitharaman requesting her intervention in the matter of pension updation.

They recalled that the Department of Financial Services (DFS), Ministry of Finance, Government of India, had in March 2019 conveyed its approval for updation of pension up to October 31, 2012, for the retirees of the RBI and the same has been implemented in RBI from March 2019.

The Centre had in its letter in June 2020 also given no objection to the RBI for giving a last opportunity to its employees to exercise the option for pension to the CPF. The RBI has since granted the last opportunity to its employees for switching over to the pension scheme in lieu of the CPF.

Full pension after 20 years

Earlier, the RBI had with effect from 2013 onwards and on lines of the Central government granted full pension to employees after completion of 20 years in service since both the RBI and Nabard pension regulations are patterned on the lines of the Government of India, the letter to the Finance Minister said.

Later, the DFS had approved with effect from November 2017, calculation of pension based on last pay drawn or the average emoluments in the last 10 months, whichever is more beneficial, to employees of the RBI. In June 2020, it has approved one more option to employees to opt for the RBI pension scheme.

Almost all Nabard pensioners are officers and employees of the RBI at one time or the other and most of them have spent a larger part of their service with it before opting for Nabard when it was carved out as a ‘Development Financial Institution for Agriculture and Rural Development’ in 1982 by an Act of Parliament.

Bipartite wage agreements

The principles enunciated in Nabard Act 1981 and Nabard Staff Rules 1982 are further reinforced by modeling Nabard employees service conditions, including superannuation benefits, on the lines of RBI for all staff members by virtue of seven bipartite wage agreements signed between All India Nabard Employees Association and the Nabard management between 1986 and 2017 and cleared by the Centre as well.

The letter the from former Nabard head honchos also said that Nabard has revised the family pension on the lines of the RBI by amending the Nabard Pension Regulation 1993 and duly approved by the Finance Ministry in 2014. Given this, the number of pensioners awaiting pension updation would be less than 2,400, it added.

Parliament passes bill to set up National Bank for Financing Infrastructure and Development

Parliament on Thursday passed a bill to set up the National Bank for Financing Infrastructure and Development (NaBFID) to fund infrastructure projects in India.

The Rajya Sabha passed the National Bank for Financing Infrastructure and Development (NaBFID) Bill 2021 by voice vote on Thursday.

The bill was passed in the Lok Sabha on March 23, 2021.

The bill seeks to establish the National Bank for Financing Infrastructure and Development to support the development of long-term non-recourse infrastructure financing in India including development of the bonds and derivatives markets necessary for infrastructure financing and to carry on the business of financing infrastructure and for matters connected therewith or incidental thereto.

The DFI (
Development Finance
 NSE -3.02 % Institution), called the National Bank for Financing Infrastructure and Development (NaBFID), will be answerable to Parliament.

Replying on the bill in the House, Finance Minister Nirmala Sitharaman explained that the five years' tax break to the DFI or NaBFID is given so that more funds flow to it.

 

Bharat Bandh tomorrow: Farmers to block rail tracks; markets, transport services to be affected - all you need to know

The Samyukta Kisan Morcha (SKM), a coalition of farmer unions, has given a call for Bharat Bandh on Friday, March 26. The bandh is in protest against the three contentious farm laws, and will be observed from 6 am till 6 pm tomorrow.

The SKM on Wednesday appealed to the citizens of the country to make the Bharat Bandh a complete success. According to a statement released by the SKM, farmers have been protesting on the borders of Delhi for the last four months and instead of accepting their demands, the government is discrediting them completely.

The SKM has called for a Bharat Bandh on Friday. On March 26, from 6 am to 6 pm, all road and rail transport, markets and other public places will be closed across the country, it said. However, this is not necessary for the places where elections are going to be held, the statement said.

Senior farmer leader Balbir Singh Rajewal said that trade unions from organised and unorganised sectors, and transport and other associations have extended their support for the Bharat Bandh. "Farmers will block rail tracks in various places. Markets and transport services will be closed during Bharat Bandh," Rajewal told PTI. However, emergency services like ambulance and fire will be allowed during the nationwide shutdown, he added.

Meanwhile, Confederation of All India Traders, which claimed representation of eight crore traders in the country, said that markets will remain open on March 26 as it is not participating in the Bharat Bandh.

"We are not going to participate in Bharat Bandh tomorrow. Markets will remain open in Delhi and other parts of the country. The ongoing deadlock can be resolved only through dialogue process. There should be discussions on amendments in the farm laws that can make existing farming profitable," CAIT’s national general secretary Praveen Khandelwal told PTI.

Besides, farmer leader and senior member of SKM Abhimanyu Kohar said that the major impact of the Bharat Bandh will be felt in Haryana and Punjab.

Senior Congress leader Digvijaya Singh tweeted in support of the protesting farmers. "We support the call for Bharat Bandh on 26th March against the three Anti Farmers Bill," he wrote on Twitter.

In Andhra Pradesh, the ruling YSR Congress Party (YSRCP) has expressed solidarity to the Bharat Bandh on March 26 which is being observed to protest against the Centre's decision to privatise Visakhapatnam Steel Plant (VSP) and in support of the farmers' unions opposing the farm laws.

Andhra Pradesh I&PR Minister Perni Venkatramaiah said that the State government is against the privatisation of steel plant and in regard to this, Chief Minister YS Jagan Mohan Reddy had written letters to the Centre suggesting alternatives to retain the organisation.

Although the state government stepped up to take complete responsibility for the plant, the Central government absurdly asked the state to participate in an open auction and place a bid, he added. "The state government opposes the central government's decision to privatise Visakha Steel, which is the right of Andhraites and aspirations of millions of Telugu people, as there has been a great history and sacrifices of Telugu people for establishing a steel plant in the state."

The Minister appealed to the farmers' associations to cooperate and observe the bandh peacefully without any untoward incidents that cause inconvenience to the general public.

In regard to this, all the government institutions in the state will be open after 1.00 pm and RTC buses will operate in the afternoon. During the bandh, all the emergency health services will run as usual.

Wednesday, March 24, 2021

Only few days Left check your income tax slab


PSB privatisation: UFBU warns for indefinite bank strikes

The United Forum of Bank Unions (UFBU) has decided to undertake further preparatory programmes to go for intermittent strikes, prolonged strikes, and also indefinite strike to protest against the government’s proposal to privatise public sector banks (PSBs).

This comes in the wake of about 10 lakh employees and officers, owing allegiance to nine unions under the aegis of UFBU, going on a two-day strike on March 15 and 16.

We must intensify our campaign amongst the people, particularly the beneficiaries and other sections of the people.

“...It was decided to undertake a mass campaign of collection of supportive signatures in the petition to Prime Minister,” said Sanjeev K Bandlish, Convenor, UFBU, in a statement.

UFBU decided to embark upon programmes, including collecting five crore signatures from the people in the Petition to Prime Minister during April, May and June; and organisational meetings at all levels in Aprilto ensure total membership contact.

The forum’s constituents will also hold mass rallies, dharnas, seminars and workshops in all the States in April, May and June.

“We are opposed to privatisation of banks and are convinced that privatisation is not the solution to the problems faced by the banks.

“It is imperative that we should prepare ourselves for a prolonged and sustained struggle and also elicit support from the people,” said Bandlish.

In her Union Budget speech on February 1, Finance Minister Nirmala Sitharaman said: “Other than IDBI Bank, we propose to take up the privatisation of two Public Sector Banks and one General Insurance company in the year 2021-22.”

Supreme Court lifts blanket ban on NPA classification

The on Tuesday said the interim relief granted earlier to not declare the accounts of respective borrowers as non-performing assets stands vacated, ending the blanket ban on classification of non-performing assets (NPAs).

“However, there shall be no order as to costs,” the order by the top court said.

In September last year, the had directed that accounts not declared NPAs as of August 31 should not be classified as such until further orders. This has since then put an effective ban on classification of bad loans.

The has also ordered waiver of compound interest for all borrowers who availed the loan moratorium announced amid the Covid-19 pandemic. Any amount already charged shall be refunded, credited or adjusted, the top court said. The government in October 2020 had announced a scheme for waiver of compound interest during moratorium for small ticket loans up to Rs 2 crore. This had cost Rs 5,500 crore to the government.

The court observed that there was no rationale in the Centre's policy to limit the benefit of waiver of interest on interest or compound interest only to certain loan categories.

Anil Gupta, vice president-financial sector ratings at Icra, said the government will have to spend an additional Rs 8,000-8,500 crore to provide compound interest waiver to borrowers with loans above Rs 2 crore. This would be over and above Rs 5,500 crore provided for interest on interest waiver for loans up to Rs 2 crore, he added

“Charging interest on interest would have eventually diluted the relief granted by the Reserve Bank of India to ailing borrowers and they may perhaps be worse off than pre-Covid stage, said Siddharth Srivastava, a partner at Khaitan & Co.

The top court refused to interfere with the Centre's and Reserve Bank of India (RBI's) decision to not extend the loan moratorium beyond August 31 last year, saying it is a policy decision.

The court cannot do judicial review of the Centre's financial policy decision unless it is malafide and arbitrary.

The apex court said it cannot interfere with the government's decision to fix priorities for relief during the pandemic which has affected all across the country.

The Supreme Court bench of Justices Ashok Bhushan, R Subhash Reddy and MR Shah said this in its verdict on a batch of pleas filed by various trade associations, including from real estate and power sectors, seeking extension of the loan moratorium period and other reliefs in view of the pandemic.

Today the decision on the privatization of banks is going to come-- be ready for indefinite strike

Today the decision on the privatization of banks is going to come. May be tell the names of banks...
I have only one request to you, no matter who's name comes, we have to fight this fight together...
Today is someone else's number, tomorrow it will be mine..
Remember, there is power in organization..



Tuesday, March 23, 2021

WAIVER OF COMPLETE INTEREST AND EXTENSION OF THE MORATORIUM NOT ALLOWED BY SUPREME COURT

The Supreme Court on Tuesday has pronounced its judgment on a batch of pleas related to the six-month loan moratorium period, stating that it cannot allow waiver of complete interest and extension of the moratorium.

The judgment was delivered by a Bench of Justices Ashok Bhushan, R Subhash Reddy, and MR Shah in a batch of petitions filed by companies, individuals, and business associations challenging the decision of the Centre and RBI to charge interest during the moratorium period and restrict waiver of interest on interest to certain categories of borrowers who had availed loans of less than Rs. 2 crore.

The Court partly allowed the petitions which had challenged the decision of the Centre and RBI to restrict waiver of interest on interest to certain categories of borrowers who had availed loans of less than Rs. 2 crores. We are of the opinion that there is no justification for waiving compound interest only on loans of up to Rs 2 crore. There shall be no interest on interest or compensation interest during moratorium period, irrespective of the loan amount. If any such amount has been collected it shall be refunded. However, the Court held that any amount collected as compound interest shall be adjusted to the next installment payable instead of refunding it to the borrower, the Court ruled.

The following prayers made by borrowers were, however, rejected by the top court.

(i)  total waiver of interest during the moratorium period; (ii)  to extend the period of moratorium; (iii) to extend the period for invocation of resolution mechanism; (iv)  prayer for sector wise reliefs provided by RBI; (v)  further reliefs over and above the packages already offered.

The Court in its judgment also underscored that the extent and manner in which economic packages and reliefs are to be provided fall within the scope of the executive and the Court does not have the expertise to deal with the same.

Have you linked PAN card with Aadhaar card? Do it before April 1.

The last date to link PAN and Aadhaar cards is March 31, 2021. The PAN cards that are not linked to Aadhaar are announced as useless and “inoperative” which will trouble your financial transaction process. As per Section 272B of the Income Tax Act, a fine of Rs 10,000 will be imposed if one fails to link both these documents.

PAN card is mandatory for opening a bank account, buying shares or mutual funds, and cash transactions of above Rs 50,000. However, these functions of PAN cards will be activated only after the PAN cardholder linked the PAN and Aadhaar card.

This can be done through an SMS. To link PAN and Aadhar card via SMS, send an SMS to 567678 or 56161 from your registered mobile number in the following format
UIDPAN<SPACE><12 digit Aadhaar><Space><10 digit PAN> Example: UIDPAN 123456789123 ACEPM1910M.

Those who have linked PAN and Aadhar cardS should check whether their PAN card is linked to an Aadhar number or not. For that, you have to click on the direct link of the Income Tax Department website. incometaxindiaefiling.gov.in/aadhaarstatus.

Enter the PAN and Aadhaar number and click on ‘Visual connection Aadhaar status’. The PAN and Aadhaar connection status will now be displayed on your computer monitor.

The PSB Mega-Mergers: Integration, Still a Work-in-progress? No one happy

 By the turn of this month, it would be one year since the mega merger of 10 public sector banks (PSBs) into four was put into force. After the Union government announced its decision in August 2019, these PSBs were doing the ground work for the actual integration of the six merging banks (MBs) with four anchor banks (ABs). Symbolic of the change, name boards of the MBs were replaced by those of the ABs with effect from 1st April last year. A year before this, two PSBs were merged with the Bank of Baroda. 
 
How smooth were these merger processes? Did they impact the customers? How did the IT platforms get integrated? How were human resources (HR) practices harmonised? How were the systems and procedures integrated? How were the employees treated? 
 
Studying the impact of mergers on the claimed economies of scale and consequential higher earnings, efficiency and financial performance is premature at this stage. It is for academicians to undertake such full-fledged study. 
 
As one who was associated with the industry for over three decades in different roles, I propose to make an assessment of the two merger exercises from purely a practitioner’s point of view.  This analysis is based on the voluminous anecdotal data culled out from the stakeholders through diverse sources—letters from the affected customers to newspapers in the local media, discussions with union functionaries, staff at the ground level, IT professionals and HR practitioners within the banks and messages under circulation in social media. For convenience, I would like to focus on the following five key areas:
 
1. Systems and procedures
2. Migration to different IT platforms
3. Integration of HR systems and practices
4. Impact on decision making
5. Cultural differences
 
Let me dwell on each of them with specific examples. 
 
Systems and Procedures
 
There were differences in the internal systems and procedures followed by MBs and ABs. For instance, the procedures of processing loan applications—those that come from a huge mass of personal borrowers—appraising them, sanctioning, documentation, and disbursements were different among the MBs and ABs. 
 
In one MB, all these were centralised in a single office to ensure speedy disposal within a fixed time frame. In contrast, in the AB, the whole process has to pass through different layers spread in a few offices.  
 
After the integration, the practice of AB is being followed resulting in a new experience of unusual delay affecting the loan aspirants and those who come for renewal or enhancement of existing credit facilities.
 
In one MB, a customer could get her cheque up to, say, Rs20,000 encashed instantly by approaching the single window operator (SWO), who was empowered to scrutinise the cheque, verify the balance in the account, formally authorise the payment and disburse the cash. 
 
Or, if she applied for a demand draft (DD), the SWO would process the DD application, debit the amount to the account of, or receive cash from, the applicant, feed the details to the system from his own computer terminal, get the DD printed immediately, sign it and hand it over to the applicant in a matter of a few minutes. 
 
After the merger, these customers find that there is no system of SWO in the new entity. 
 
In another MB, for a loan against pledge of gold, the process was simple: the branch manager or his second in command could scrutinise the application, appraise the gold, sanction the permissible amount, execute a single document, which incorporated the promissory note and the letter of pledging the security to the bank along with what in banking parlance is called ‘take delivery letter’ that authorises the bank to take the security with the consent of the applicant. 
 
Similarly, in the case of a loan against a fixed deposit (FD), the decision would be at a single point; the document would be a single letter of demand promissory note (DPN)-cum-pledge of the FD authorising the bank to appropriate it against the liability in case of default. 
 
Post-merger, such customers find a more layered processing, sanction, and disbursement and three documents—a DPN, a letter of pledge and a take delivery letter-each attracting separate stamp duty casting an additional burden on the small borrowers. 
 
In one MB, a depositor could also pledge her FD for an overdraft limit and through cheques or net banking, draw money whenever she needed to. It was in the nature of a running account. The interest would be on the actual debit balance in the overdraft account. 
 
After the merger, such depositors find that AB does not have the system of overdraft on pledge of FD; if they need temporary funds, they must avail a loan at one shot irrespective of the immediate needs.
 
In another MB, if there was a wrongful debit of an account, the branch manager had the power to reverse it and re-credit the appropriate amount to the account. In the AB, such corrective actions need prior sanction from higher authorities. Managers have no autonomy to rectify human or system related errors. 
 
These instances demonstrate how post-merger, instead of adopting simpler, customer-friendly systems prevalent in MBs, ABs have retained their own cumbersome systems.
 
IT Integration
 
When the State Bank of India (SBI) took over, during 2017, its five associate banks, the IT alignment was smooth because before the merger the IT platforms were uniform in SBI and its associate banks. In the case of merger of PSBs, the integration posed a series of problems. 
 
Each of the PSBs had its own customised version of IT software developed in-house or supplied by IT companies. The feedback I have gathered reflects the mess the banks are now in due to inadequate understanding of the differences. 
 
A higher version of Finacle supplied by Infosys that was being followed by one MB was dumped in favour of the lower version destabilising the system itself after their so-called IT integration. 
 
The field staff of the MBs had hardly any familiarisation exercise with a different template, nor were there any detailed do-it-yourself kits. They were simply asked to operate a new unfamiliar package.  The messages that went viral from November onwards illustrate this. 
 
Here are a few samples of the messages circulated in WhatsApp groups:
 
Pls have proper track of your deposits & keep your receipts & passbooks safe, they gave me a shock when they told that my 4 lakh FD is not reflected in system, it will become very difficult to prove in the absence of proper records or proof to produce.
 
XXX Mobile (An app of the AB) never opens in first attempt. After several attempts, it opens followed by a message ‘server related issues, try later’. The payees’ list has vanished. It was there yesterday. But vanished today. I had to add payees’ details again and again.
 
My cheque was returned by the bank stating that the balance in the account was subject to a lien. There was no loan or any liability on my part.
 
I had effected a remittance through NEFT to a beneficiary in M town. My account was debited but the beneficiary did not get the money in his account. When I approached the manager, he asked me to complain in writing to which there was no response for ten days! Only when I picked up an argument with the manager my account was re-credited with the missing amount.
 
In several cases, cheques were returned for ‘want of funds’ when the accounts actually had balances to cover the cheque and penalties were debited to the account of the customer. Quarterly interests on fixed deposits (FDs) were not credited on the due dates. This failure affected the payment of loan instalments linked to deposit interests.
 
There were cases of non-renewal of matured FDs, despite auto-renewal mandate; when personally issues were raised, the banks asked the affected persons to give letters and such letters would not be acted upon promptly.
 
In transfer of data of customers of MBs to ABs data integrity was affected. Depositors found to their dismay that their relationships with nominees were different from what was originally provided: spouse became ‘other’, son became daughter and vice versa. 
 
Addresses of the account-holders were not correctly transferred to the database of AB. Standing instructions and periodic interest payment mandates were not carried out. 
 (TR Bhat is former president of All India Bank Officers' Confederation (AIBOC) and former officer of Corporation Bank)

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