RBI Governor: Please Stop Banks Fleecing Customers and Depositors!
Moneylife Digital Team 20 March 2017
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.
 
 
The Memorandum is sent to the Prime Minister, Finance Minister and Secretary of Financial Services as well. Those who have signed and endorsed the Memorandum, include, RN Bhaskar (Free Press Journal), Dhirendra Kumar (Value Research), Abhay Datar (Mumbai Grahak Panchayat), Shubha Khandekar, Harsh Vardhan Roongta, Dolphy D'souza (Police Reforms Watch), Mahua Ghose, Partha Mansukhani (Public Concern for Governance Trust -PCGT), Lalita Joshi (All India Bank Employees Association -AIBEA), Raj Vaidya (Central Bank Employees' Union -CBEU), Adv Bapoo Malcolm, Sucheta Dalal and Debashis Basu (Moneylife Foundation), S Saroja (Citizen consumer and civic Action Group -CAG, Chennai), AV Shenoy (Rashtriya Matdata Manch) and Yogesh Sapkale (Moneylife), among others. 
 
 
Based on the Memorandum, Sucheta Dalal, Founder-Trustee of Moneylife Foundation has started an online petition on Change.org. Here the link to sign the Petition online
 
Here is the copy of the Memorandum
 
 
 
Comments
Richard Armond
5 years ago
RBI has always bailed out SBI. RBI loves corrupt nationalized banks. Especially SBI. They always print more notes and supply to SBI, let the rupee devalue heavily and they let common man suffer as long as SBI's corrupt management is safe. So do not worry, people. SBI will never fail.
Richard Armond
5 years ago
RBI has always bailed out SBI. RBI loves corrupt nationalized banks. Especially SBI. They always print more notes and supply to SBI, let the rupee devalue heavily and they let common man suffer as long as SBI's corrupt management is safe. So do not worry, people. SBI will never fail.
Balaji Kasal
5 years ago
Hi,

I wonder does RBI too care for bank customers? It might think itself as Banking regulator... Not customer centric.

Since last months I am requesting SBI bank to move my home loan to MCLR regime without any charges. Raised compliant till SBI Principal Nodal Officer. Till date no response... forget about action.

On 7th March 2017 raised compliant to RBI on Mumbai Office of the Banking Ombudsman. No response.... Then raised compliant to RBI against its BO for no response. Received a auto mail saying - 'We acknowledge having received the above complaint letter and we will revert to you in due course.'
No date for resolution. No contact person.

Finally today sent mail to Moneylife Foundation for help to put in right forum. I am sure my concern would be take up to right forum/people.

Thanks.
Richard Armond
Replied to Balaji Kasal comment 5 years ago
Use RBI's SCORES online form to file complaint. You will definitely get a response.
Deepak Narain
5 years ago
I am a Senior Citizen. My main problem is that the ICICI Bank does not accept Form 15H online though some others do. If they too start, it will be a great relief to me and many others in my situation.
SuchindranathAiyerS
5 years ago
Indian Banking: A blend of Indian Governance (unaccountable profligacy, incompetence and corruption) and Ivy League Banking (Junk Bonds, Non Performing Assets and Insurance rip offs):

As per the over arching and Constitutional principles of the Indian Rapeublic, the good are made to suffer to benefit the wicked.
Richard Armond
Replied to SuchindranathAiyerS comment 5 years ago
Yes totally agree
Unnikrishnan Nair B C
5 years ago
I had sent a mail regarding this petition through change.org. Just because some so called big wigs have signed the memorandum whatever is said in it need not become true. The services from a bank, which is a commercial organisation, cannot be expected to be free. Does the site carry ads on it free of charge? One may argue that one has been forced to go to the banking channel and then he is being charged. The country's monetary policy framed by rbi needs to be honoured by everybody.
MDT
Replied to Unnikrishnan Nair B C comment 5 years ago
Thanks for your comment. We request you to carefully read the Memorandum and the text of the article once again. Nowhere it is mentioned that all should be 'free', as you stated. What bank consumers need is a fair treatment and no 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. But may be for you, this unfair treatment towards consumers by banks falls under 'services' and nobody should complaint.
Jaijawan Jaikisan
5 years ago
Don't spread panic in people. This could be temporary situation to complete the merger process not a sign of bankruptcy (also as march 31st is getting closer). It might also be doing investigation on influx of fake currency into its system.
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