Guard Yourself against Mis-selling by Banks - Moneylife

Guard Yourself against Mis-selling by Banks - Moneylife


Two years back, I was sitting with a middle level executive of the Thiruvananthapuram branch of State Bank of India. As he was fairly free, we were talking on general banking topics for a couple of minutes. He was not aware of my ‘RBI identity’. I casually asked him why with all sorts of complaints about ‘not very courteous services at the front desk’, why people are still crowding government-owned bank counters, leaving posh environment in new generation private sector banks. His answer was revealing. He said: “Despite all negative publicity, common man is still confident about the safety and security of his money with ‘us’. Banking works on trust and our clients, whether one approaching for a gold loan of Rs1000 or a pensioner who has an account with us, trusts the institution.”
While any business has to have profit motive, when financial products are sold to unsuspecting customers without assessing their risk appetite or needs banks are not doing service. Thank you, Moneylife for daring to debate such issues. ‘Private Media’ cannot go public on such concerns as that may bring down their revenue. Incidentally, most of the instances quoted relate to private sector banks. Private sector banks’ share in banking business in India is still below 30% and they are dependent on activities beyond traditional banking for their present level of profit.


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