In the hectic rush of the day & the scramble to earn more, save more & have better facilities, choosing the right bank is an important aspect most people often overlook. Initially, there were only moneylenders who would borrow money from the rich, paying them some amount of interest & lending them to the needy at a higher level of interest so that they have a share of profit.
It is on this principle that modern day banking emerged. Like all other business activities, banking is also a service based industry & since its motive is to earn profits, it's simply another line of business.
In India, we have basically 3 types of Banks in the banking sector- co-operatives, nationalized & private banks which includes foreign banks. In order to make a fair choice of Ur bank, it is first necessary to understand Ur requirement & expectations.
Most banks deal with the same kinds of transactions except for the specialized branches & they offer almost similar schemes which are varied according to the specific needs of customers. An ordinary savings account, savings account coupled with Fixed deposits, Recurring deposits, Long term deposits, Monthly Income Plans, Current Accounts to route business transactions, Revolving Funds better known as Credit facility & numerous types of loans depending on the purpose- U name it, they have it. So, where does the difference lie?
First of all, it is necessary to understand that banks do not lay down their own fundamentals & rules. They are guided largely by the RBI Act;1934, Negotiable Instruments Act;1881 & Banking Regulation Act; 1949 along with the recommendations of various committees which they are bound to follow religiously.
So, if you are asked to procure certain documents & proofs or to make available seemingly meaningless paperwork, it's just the fundamentals. The same goes with the interest rates. The Reserve Bank of India lays down the guidelines for everything including the Bank rates & it is within this range that banks have to fix their rates.
As a result, most nationalized banks will offer almost the same rate. Public sector & foreign banks, which offer seemingly higher rates, do so only on huge amounts of deposits & that too only during the period that Ur deposit remains high. Once it plunges down below the stipulated minimum balance, U will be charged extravagantly anything from Rs. 250 per month to Rs. 1000 per month. For the filthy rich with money to burn, it doesn't matter since a 1000 bucks won't even constitute their daily pocket money. But what about the ordinary man? All private sector & foreign banks will have a very wonderful staff & even offer U cold drink before discussing Ur requirements.
They are paid to do that & are still struggling to remain stable in the Indian banking scenario. But it is interesting to watch that these same staff will not even look at U in the toes if U walk in dressed as a'not too rich' person. A thinker once wrote 'A person who is nice to U & rude to the waiter is not a nice person after all.'
Now in contrast, if U go to a nationalized bank dressed like Bill Gates or the town's sweeper, U get almost the same treatment- indifference. It's laughably a very serious matter & one which I'm very ashamed of, being in this industry. Unless U really have people known to U on a personal level, Ur work will take ages to be done while its actually just a matter of a few minutes. Again the fault lies from the clerks to the officers & mostly on the peons who are so busy shuffling from one table to another that they would wish they were at least a dozen of them.
The vouchers will lie waiting to be passed on from the clerk's table to the officer's who seem to be more interested in gaining that pot belly sitting at their desk. Their legs suddenly seem to lose all agility & strength. By the time Ur work actually gets done, U are so irritated that U swear never to visit the bank again or change it immediately. But is it going to be any different in another bank?
Again it is necessary to understand that while you wonder why the hell can't Ur simple requirement be hurried up & taken care of, you are not the only one who is standing in line. Every person is most important to himself & his time most precious.
While you are one person for Urself who's need is urgent, for the banker, you happen to be just one of a million customers & each customer is important to an extent; so important that he is often neglected. Thousands of people walk into a bank & believe me, many of them have such trivial complaints. Would you believe an elderly person literally fighting & threatening to sue the bank just because his savings interest should have been Rs. 312.13 & only Rs. 312 was credited to his account. For that he calls the bank a bunch of thieves. It gets pretty frustrating at times.
More so when the clerical staff refuses to obey, the management keeps yelling at you since they are being pressurized by the Manager who is kept in check by the Regional Head who is answerable to the Zonal Head who has to tremble before the Central Office who is under the Head Office. It goes a long way in a very complicated manner.
Then how do you choose a bank which will not only look after your financial needs but also feed your ego, which is present in everyone? I would suggest, by making your requirements very clear, defining it & discussing it with the Bank you wish to deal with.
Personally, I like to tell most customers who lie through their teeth about certain things which can in turn get the bank in a fix, 'Always be truthful & never hide anything from 3 people in your life- your lawyer, your doctor & your banker. Once their work is over, they are humans too & that community of humans who are greatly misunderstood & treated with prejudice & contempt.
They need a little patience too. If you want service with a smile, try by giving a smile first.
There is really no hard & fast rule as to what a good bank should be since no bank can fulfil 100% criteria. There are many people who prefer ATM machines but then an ATM machine doesn't say'Good Morning, Mr. So-&-so'. Again it depends on whether you prefer the cold machines or a human touch in the services recieved.
However, just because I am a banker, I will not say that Banks are completely & absolutely correct. Many times, they really do irritate the customers & can be very rude & insulting. & then they also have the audacity to challenge U to do what U can. Well, yes, there is an alternative. The RBI has introduced the Banking Ombudsman Scheme 1995 which is a consumer forum especially for complaints against banks.
If you have a genuine complaint then you can approach the Ombudsman bench & your grievance will be redressed. This is a genuine way of improving the banking services though most people have no idea about it & Banks prefer to keep it a secret since it is a weapon against them.
Contd in comments section.
