Letters to the editor dated September 30, 2020

This refers to the editorial, ‘Inexplicable lapse’ (September 29). The delay in appointing external MPC members is something both Centre and the RBI could have easily fixed in time. The delay in filling the vacancies of external members for the MPC prompt one to think whether the Centre is trying to clip the wings of the RBI, which is an autonomous body.

Chennai

At a time when the economy is facing a crisis caused by a pandemic, it is of utmost importance to ensure financial resilience, and accordingly, the bi-monthly evaluation of the monetary- linked matters are of greater significance. Albeit knowing well in advance the expiry of the term of the members the government remained passive in appointing new members which ultimately resulted in the continuity of the last decision. To avert such a situation in future, the government and the RBI must look for alternate measures to ensure the conduct of the MPC as per the schedule.

Changanacherry, Kerala

This refers to ‘No instruction from RBI to prepare for takeover of Lakshmi Vilas Bank: PNB’ (September 30). It was interesting to learn that the Punjab National Bank has not received any instructions from the RBI to get ready to take over Lakshmi Vilas Bank whereas our national media was recently agog with such far reaching reports.

However, a PIL seeking suspension of Lakshmi Vilas Bank board has reportedly been filed. Moreover, the RBI has already stepped in and approved that the day-to-day affairs of the lender would be run by a Committee of Directors comprising three independent directors.

It may also be added here that this bank has suffered a loss of Rs 121 crore during Q1 this year. This proves all is not well with this bank. However, it would be highly unwise if PNB is eventually asked to take over this ‘ill-fated’ bank more so when it has already taken a whole lot weak banks into its fold. But how long will PNB, one of the few ‘strong’ banks, be made to clean the economic filth created by these weak banks?

Bengaluru

This refers to ‘Take it to all doorsteps’ (September 30). Doorstep banking is a good move in principle but how it pans out in practice is anybody’s guess. All public and private banks have a customer’s cell to resolve the various banking issues but they are invariably busy or very rarely solve the customer’s problem and customers are advised to visit the bank.

If one visits the bank he or she is greeted by agents and middlemen who use all marketing skills and sales pitch to trap with some policy , scheme, etc. and the genuine problem takes a back seat.

The terms and conditions of banking are slanted in favour of bankers and any default by the customer invites penalty. There should be provision of levying penalty on banks also for lapses in services and abdication of duties.

For helping senior citizens a dedicated counter is desirable in bank premises, which ought to be functional not ornamental. There is huge scope for buttressing the extant system so as to inspire confidence in doorstep banking.

Chennai

The extended customer services proposed by several banks in the pandemic times is well-timed and would be of immense help to senior citizens, pensioners and other non-tech-savvy customers for their banking operations. However, these services should not be restricted only to urban centres, but to be covered in remote and hilly areas too, where transport facilities are impacted.

One word of caution is that, since it is a personalised service, the agencies or officials who are entrusted with these special duties should be adequately sensitised while dealing with the ignorant and incapacitated customers and establish highest form of integrity. If effectively implemented, this new service tool would fetch additional business for banks in the form of deposits and revenues from cross selling of mutual fund and insurance products.

Bengaluru

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