SBI: KIDS PENNILESS AFTER MINIMUM BALANCE RULE

[theterminator]

Dormant accounts may be misused sometimes in financial fraud/laundering cases.As these accounts are KYC but not checked by their owners,some corrupt bank official can use such accounts for illegal parking of money for short duration(maybe even a few minutes or hours) before transferring the money to some other account as legit looking transaction.

Yes its true. There was one case in a nationalised bank where 9crore fraud happened. Generally bankers are taught to treat money as paper & nothing else but you can't tell of anyone's intentions.

Though there are bad people in every field but this should not be a general rule in banking sector. Bankers are one of the most hard working community in this nation. They work under tremendous stress, duress & that only increases everyday.

 

[whitestar_999]

But bank has been paying interest to that crorepatis. It will depend on branch profile like how much business the branch does to actually say for it.

Why psb's need to be privatised? The single reason for PSB's losses are those big corporates for which our govt is a broker. Also psb's suffer losses due to the social responsibility on them like opening of very less or even zero balance accounts. After Modi's Jan Dhan even a zero balance account holder demands all the facilities like ATMs, Cheque book, Passbook which incur costs.
Privatisation will also kill jobs.

Bank interest rates on savings account is much less than returns provided by investment in equity or debt markets.Even by conservative estimates an amount of 1crore invested in a balanced portfolio of multi cap & debt MFs would easily fetch a return of 15-20% compared to 4% interest rate(now 3.5%) on savings account for a period of few years.

PSB's needs to be privatised exactly for this reason.Why do you think big corporates like Mallaya got loans froms PSBs & not that much from pvt banks.Because if a GM in a PSB rejects a corporate loan he will soon get a call from a central minister telling him to either pass the loan or forget about any career opportunities in future?This is not possible in case of pvt banks.Another reason why ministers & babus preferred Air India despite it making huge losses because they can make a call & delay the boarding of plane if they are running late.It is a myth that privatisation kills jobs,same like saying "big bad foreign MNCs will conquer India if allowed to invest freely",yeah right(looking at China)!

 

[theterminator]

Bank interest rates on savings account is much less than returns provided by investment in equity or debt markets.Even by conservative estimates an amount of 1crore invested in a balanced portfolio of multi cap & debt MFs would easily fetch a return of 15-20% compared to 4% interest rate(now 3.5%) on savings account for a period of few years.

PSB's needs to be privatised exactly for this reason.Why do you think big corporates like Mallaya got loans froms PSBs & not that much from pvt banks.Because if a GM in a PSB rejects a corporate loan he will soon get a call from a central minister telling him to either pass the loan or forget about any career opportunities in future?This is not possible in case of pvt banks.Another reason why ministers & babus preferred Air India despite it making huge losses because they can make a call & delay the boarding of plane if they are running late.It is a myth that privatisation kills jobs,same like saying "big bad foreign MNCs will conquer India if allowed to invest freely",yeah right(looking at China)!

privatisation will definitely kill jobs as it will not happen without merging the banks. first they will merger small banks where some employees have to forcefully take vrs. there is a planned strike on 22-9-17 on parliament street against this. just because of political pressure privatisation is not justified.

And return on mutual fund investments are subject to market risks. Savings rate is 3.5% only in sbi. Not all have adopted. Also very rare public maintain balance in savings, they immediately turn to fixed deposits or mutual fund rather than savings. Bank balance sheet suffers since current n savings are low cost deposits.

 

[meetdilip]

Privatisation is Airtel. Selling 1 GB 3G data @ ₹ 200. Even their land line broadband is dead costly. Look at ACT. They too serve big cities like Airtel ( high-density areas ), but offer more data and speed. Govt. sector has many bad parts. But for someone living in a small town or village, even today, BSNL is the only option for land line and broadband. Even 3G.

 

[whitestar_999]

privatisation will definitely kill jobs as it will not happen without merging the banks. first they will merger small banks where some employees have to forcefully take vrs. there is a planned strike on 22-9-17 on parliament street against this. just because of political pressure privatisation is not justified.

And return on mutual fund investments are subject to market risks. Savings rate is 3.5% only in sbi. Not all have adopted. Also very rare public maintain balance in savings, they immediately turn to fixed deposits or mutual fund rather than savings. Bank balance sheet suffers since current n savings are low cost deposits.

Killing "non-productive" jobs is not the same as killing "productive jobs". Nothing in this world comes for free.For every "unproductive job" in Banks/Air India,two "productive" jobs in economy pay the price.

This is common knowledge in banking sector that whatever SBI decides regarding interest rates,others almost always follow because of SBI size.
7 top Banks that have cut interest rates on savings bank accounts
Punjab National Bank Follows Peers In Reducing Savings Rate
Bank Of India slashes interest to 3.5% for deposits up to Rs 50 lakh
Andhra Bank cuts interest rate on savings account to 3.5%

SBI,BoB,Karnataka Bank,Axis Bank,Indian Bank,Yes Bank,HDFC Bank,PNB,BoI,Andhra Bank all offering 3.5% savings interest now

I don't know on what basis you are saying that people don't put money in savings account.If you regularly read any good financial daily & look for articles regarding financial planning or queries,the only thing almost always common is advice to people to move majority of their savings from bank accounts to investment options.
SBI cuts interest rates for most of its savings accounts deposit customers | Forbes India

The total deposits for SBI and its associates were at Rs 25.8 lakh crore, of which savings account deposits accounted for Rs 9.4 lakh crore, according to data from the bank relating to March 31, 2017.

 

[theterminator]

BoB has cut interest rate from 4 to 3.5 on deposits above 50 lacs.
Its a wrong perception of the public that nationalised bankers jobs are unproductive. Its the governing policy of the banks which make it unproductive like the example of email posted above. Who in their right minds would not accept email as a valid mode of communication in todays day and age. But No. An employee if wanting to help a customer cannot do so. And it creates a perception on the customer that the employee is behaving like a maharaja.


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[whitestar_999]

BoB has cut interest rate from 4 to 3.5 on deposits above 50 lacs.
Its a wrong perception of the public that nationalised bankers jobs are unproductive. Its the governing policy of the banks which make it unproductive like the example of email posted above. Who in their right minds would not accept email as a valid mode of communication in todays day and age. But No. An employee if wanting to help a customer cannot do so. And it creates a perception on the customer that the employee is behaving like a maharaja.


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You are somehow thinking in opposite way,maybe you read it wrong in a hurry.
After SBI, Bank of Baroda cuts interest rates on savings accounts - Times of India

Within days of SBI slashing interest rate on savings bank account, another PSU bank - Bank of Baroda - has followed suit, cutting it to 3.5 per cent on deposits of up to Rs. 50 lakh.

And exactly why banks need privatisation because as long as govt remains in charge the governing policy of banks too will remain unproductive.Air India is a very good example of this.Why are you so averse to working under pvt management in a bank anyway.Do you prefer working under a "sarkari babu IAS officer or Arts graduate ministers who consider themselves as kings or a Stanford/Harvard MBA background business specialist who knows their stuff?

 

[theterminator]

You are somehow thinking in opposite way,maybe you read it wrong in a hurry.
After SBI, Bank of Baroda cuts interest rates on savings accounts - Times of India


And exactly why banks need privatisation because as long as govt remains in charge the governing policy of banks too will remain unproductive.Air India is a very good example of this.Why are you so averse to working under pvt management in a bank anyway.Do you prefer working under a "sarkari babu IAS officer or Arts graduate ministers who consider themselves as kings or a Stanford/Harvard MBA background business specialist who knows their stuff?

Why are you so averse in wanting to make govt officers/employee private? As per your thinking there should be no govt officer anywhere.

Also i prefer working for the people , working under a govt undertaking will definitely make you do that. Working under ias officer is not a bad thing as you are pointing it out. Working under corrupt people is bad. Before you say anything, there are corrupt people in pvt sector also.

 

[whitestar_999]

Because I have actually seen the inner working of so called govt officers/employees.I have known about IAS officers so corrupt that they would make some corrupt politicians to shame.I am not saying every govt officer should be replaced by pvt sector but I do support anyone which can be replaced must be replaced.e.g.you can't outsource police work to pvt security agencies but you can definitely privatise bank & replace IAS officers with Havard/Stanford MBAs in banks management.Yes,there are corrupt people in pvt sector too but their numbers compared to govt sector is nothing.Tell me one big scam which does not involve ministers/bureaucrats & before you give example of Mallaya & Kingfisher do remember that Mallaya got majority of his loans from public sector banks only thanks to his political connections.

Btw what exactly do you mean by "working for people".You think working in a public sector bank makes you work for people.At best you are working for ministry of finance & at worst you are working for you BM.When a bank/company is listed on share market for selling govt shares to reduce its shares to below 50% & its share bought by common people & institutional investors,are they not people of this country or do you mean to say that govt is the only institution with divine right of representing people or only "poor people with jan dhan account" are "real people" in which case this entire argument is pointless because by that standard none of us here can be considered as "real people".

 

[theterminator]

Because I have actually seen the inner working of so called govt officers/employees.I have known about IAS officers so corrupt that they would make some corrupt politicians to shame.I am not saying every govt officer should be replaced by pvt sector but I do support anyone which can be replaced must be replaced.e.g.you can't outsource police work to pvt security agencies but you can definitely privatise bank & replace IAS officers with Havard/Stanford MBAs in banks management.Yes,there are corrupt people in pvt sector too but their numbers compared to govt sector is nothing.Tell me one big scam which does not involve ministers/bureaucrats & before you give example of Mallaya & Kingfisher do remember that Mallaya got majority of his loans from public sector banks only thanks to his political connections.

Btw what exactly do you mean by "working for people".You think working in a public sector bank makes you work for people.At best you are working for ministry of finance & at worst you are working for you BM.When a bank/company is listed on share market for selling govt shares to reduce its shares to below 50% & its share bought by common people & institutional investors,are they not people of this country or do you mean to say that govt is the only institution with divine right of representing people or only "poor people with jan dhan account" are "real people" in which case this entire argument is pointless because by that standard none of us here can be considered as "real people".

You are entitled to your opinion which is mere "opinion" only. Pvt sector is so holy that you should work there only. The sector is scam-free .

 

[theterminator]

You are entitled to your opinion which is mere "opinion" only. Pvt sector is so holy that you should work there only. The sector is scam-free .

and you think working in a psb is only working for ministry then you know nothing. comment only if you're working inside one.

 

[whitestar_999]

You are entitled to your opinion which is mere "opinion" only. Pvt sector is so holy that you should work there only. The sector is scam-free .

Yes,& so is yours who think govt sector is "holier than thou" but then I should have expected it sooner after seeing your posts in the veg vs non-veg thread where you are practically acting as spokesman of govt voicing the opinion that "it is against nature for humans to eat meat".

and you think working in a psb is only working for ministry then you know nothing. comment only if you're working inside one.

What made you think that I commented all that without working in govt sector & it may not be a PSB but then it is the same govt that runs psb as well as other psu.People like you also made a lot of noise before 1991 reforms saying privatisation will destroy India but it still happened.Keep dreaming about "safe govt psb job" for a few more years when govt will be forced to privatise banks just like like it was forced to open up economy in 1991 after having to mortgage its gold reserve to IMF(beggars can't be choosers so IMF told India to open up its economy & it did).

 

[theterminator]

Yes,& so is yours who think govt sector is "holier than thou" but then I should have expected it sooner after seeing your posts in the veg vs non-veg thread where you are practically acting as spokesman of govt voicing the opinion that "it is against nature for humans to eat meat".

What made you think that I commented all that without working in govt sector & it may not be a PSB but then it is the same govt that runs psb as well as other psu.People like you also made a lot of noise before 1991 reforms saying privatisation will destroy India but it still happened.Keep dreaming about "safe govt psb job" for a few more years when govt will be forced to privatise banks just like like it was forced to open up economy in 1991 after having to mortgage its gold reserve to IMF(beggars can't be choosers so IMF told India to open up its economy & it did).

till then , let the people do their work instead of ridiculing their commitment.

 

[theterminator]

I never said govt sector is holier than thou


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[whitestar_999]

Let's stop this here & like you said let people do their work so do your work.