9 March 2021.
Good Morning Readers.
In today's blog wanting to share my personal experiences
shortfall & flaws seen in #indianbanking systems & processes after
getting Indian banks merged.
I have been contemplating this to write for quite some
time whether Indian banks mergers which were announced recently were assisting
or dissatisfying banking customers of these related banks.
As per Indian government policies & vision, ten public
sector undertaking banks got merged into four large banks. This was one of the
largest consolidation activity in the banking space, with this merging &
coalition the number of public sector banks in India had come down to 12 banks
from 27 banks earlier.
Before I start with hardships faced by Indian banking
customers due to these mergers as the same has not been done in a systematic
& proficient manner.
Let me brief you which all Indian banks are merged &
with which leading principal banks.
Oriental Bank of Commerce & United Bank of India merged
into Punjab National Bank.
Syndicate Bank merged into Canara Bank.
Allahabad Bank Indian Bank merged with Indian Bank.
Andhra Bank & Corporation Bank merged with Union
Bank of India.
Various issues are currently faced by these merged banking
customers.
It was announced Indian Banking merged customers including
depositors of merging banks will be treated as customers of the leading
principal banks but to date, this tenet still not noticed, felt or followed in
any of the merged banks.
The merging banks & principal banks core banking versions
are of different versions so merging into one principal banking systems
seem to become a difficult task for all banks technology teams.
Customers of merging banks are having difficulties in getting
their passbook updated for months now and new chequebook requests as IFSC codes
had changed are also not happening due to tremendous requests from too many
customers..
Due to work pressure, clerical staff are misplacing
chequebook requests slip or not entering new requests of customers in their
respective core banking systems.
It is pathetic behaviour displayed of clerical staff with HNC
they feel HNC are their bank borrowers instead of they been lenders absolutely
no customer relation principles or policy in place. Total disrespect, rudeness
& behaviour seen in these banks, due to this many customers are moving to
other private banks for better relations & respect.
According to me one of the biggest issues seen forthwith is
the changed of bank account numbers, which would be needed to be instructed at
all mutual funds, Demat accounts, FD companies, Insurance companies, etc. This
has also been one big hassle. In case changes are not done, future &
dividend incomes will. not be received properly by the investors.
The customers are also facing issues with OTP because
many of the telemarketers of Sms providers have not registered with TRAI - DLT
technology.
The change in IFSC codes means changing the MICR Codes which
means changing the bank account No’s as well As these are not changed
customers are facing huge problems & big hurdles of changing
ISFC codes for NEFT transactions. imagine the scenario senior
citizens who are getting regular pensions from govt bodies like Government
departments etc have to resubmit all documentary proof like cancelled
a cheque which is in short supply because of heavy demand, to restart their
pension.
Thirdly the merging banking officials are having big EGOs HR
issues in reporting to principal banks administrators as reporting mechanisms
still not put in place till date.
The behaviour of banking clerical staff is such they feel
nobody can penalize them or discard them the guiltiest thing to occur to them
as they would get transfer to other bank branches this attitude should change
and customer relation & retention should be prime mission of the bank
officials.
Whether this Indian government decision is right or wrong in
merging PSU banks only the coming time will tell.
I want to hear from you your thoughts, comments as to how you
feel on improvisations needed to be done in Indian Banking Systems. If you know
any bankers or you are part of any banking group. Pl, forward this poss to
banking officials you know Jawahar B Lalla.
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