Banks and Their Methods
I wanted to open a bank account with following facilities:
1) The debit card provided should be VISA
2) It should have good internet banking facility – particularly providing for -
a) NEFT Transfers
b) Online opening of TD/FD/RD etc accounts
3) Preferebly PSU bank (!)
4) Branch should be near my home
As I wanted a new Bank a/c, I first went to Corporation Bank (Jabalpur) – this branch is not really close to my residence. However, I had banked with the Asansol Br. of the Bank – and it was a really good experience and was a good branch with good people.
Here in Jabalpur – I asked as to whether only documents would do or I need reference – the self asserting official in a self important manner said – you need documents and reference from a reputed customer.
Now – How the h$#@ I am supposed to know who are your reputed customers.
Thereafter, I went to Bank of India (Kamla Nehru Br.) which is at walking distance from my home. I had never previously banked with BOI. Here it is a newly opened branch – spacious – the officials seems good enough.
I asked for the a/c opening form. Thereafter, I asked whether I need any reference – and the official said no ! I only needed PAN and the Driving License.
This is banking. (Private sector banks usually do with only such requirements – and they follow the same rules of banking – PSU banks also should not be any different)
I it really ironic that different PSU banks follow different procedures – even though they are bound by the same administrative rules of the Government of India.
The KYC norms is part of due-diligence by banks for the purpose of establishing the identity of the customer. In normal circumstances – the Proof of Identity & Proof of Address is sufficient – if these are backed by government documents.
However, many banks (or many branches of the banks) would ask for all sorts of documents – bring PAN, Driving License, Telephone Bill, Electricity bill, Employer certificate, Voter ID, and in addition to that signature of reference. They would like to keep with themselves all the documents (I would characterize it as mentality of ‘saving ones skin’ – which is quite prevalent in Government Departments)
My view is that as consumer – avoid such banks / branches of such banks – where there is unnecessary ‘paper bureaucracy’. As consumers, it must be remembered that its not the rules that make ‘paper bureaucracy’ – it is the wrong implementation of law – where the law becomes an end in itself that gives rise to ‘paper bureaucracy’. Rules should be means to an end – not an end to itself. Unfortunately PSU banks/ bank branches continue to have bureaucratic mindsets.
I finally opened the bank account. However now I find that since it is a new branch – even though it is NEFT enabled – it is not in the list of other banks internet banking list !
It seems for the time being I will not be able to do NEFT transfer to the account. I should have done some due diligence beforehand on this matter. But lets see how the BOI lives up to its customer’s expectations.
Update 02-July-2009: Bank of India
So, I had opened a saving bank account with the new branch of Bank of India which is located near my home.
I had opened the account in 09-April-2009. I had simultaneously opted for the Debit Card, Internet Banking and Multicity Chequebook.
The bank seemed fine – everything was new and number of customers were low – after all the branch had opened only this year.
While the documents relating to internet banking came along quite well within twenty days of opening of the account. But the wait for Debit Card and the cheque book seemed endless.
So nearly after two months of opening of the account I received phone call from branch that my cheque book had come and was lying in the branch for few days!!!
After nearly third month coming to an end, I rang up the bank yesterday, that my debit card had still not come – the Branch manager said that it had been late this time and the courier service had also created problems – so now I could collect the Card and the Pin from the branch!!!
Sometimes, I find it pathetic that a bank that prides in saying that it was the first in the country to open ATM and now all its branches are 100% centralised – that still it seems to be a very slow bank crawling… crawling… and crawling… – with no intimation to its customers on time and no follow up actions despite reminders through emails.
Also, only my initial email was responded to and thereafter there was no response from the bank regarding the issue of non receipt of cheque book or the debit card.
Compared to this I find that the working of SBI and Axis bank is simply excellent. Despite being a white elephant PSU, SBI is the best PSU bank and is even better than many of the private sector bank. Similarly the Axis bank, which is another of my bank, is equally efficient.
Update 30-July-2009: Problems with BOI
Recent Experience:
For online card transactions, RBI (Reserve Bank of India – the Central Bank that controls all other banks in India) has come out with guidelines – to make these online transactions safer, it has made mandatory for all online transactions to have an extra level of authentication from 01-Aug-2009. This ‘extra’ level of security is the “Verified by Visa” (VBV) and the “MasterCard SecureCode” (MSC).
Such services are being offered by more progressive banks for quite sometime now – like the Axis Bank and the SBI (these I know of) – these are apart from other banks like HDFC etc who offer such services for quite sometime.
When I had registered for the VBV of Axis Bank – it was a smooth registration – and no hassels. I have used the Axis Bank debit card for internet transaction on so many occasions that I have lost count of it. And these transactions go real smooth. (my experience here).
This facility was not available with Bank of India earlier – and they have done it only a few days back. Now, today, I tried to register my Debit card for the VBV – and bump!
Now this has been such a bad experience. It says “The card number you entered cannot be found”! The debit card has been used to withdraw money from BOI ATMs and it works fine. However for VBV it does not recognize the debit card number!
Update 30-Oct-2009: Debit Card and BOI
I tried the registration process after many days -and finally the Debit Card gets registered for online transaction.
I would also add that now I find that the Online Banking system of BOI works quite fine – and I guess that since it is a small bank – the money gets transferred pretty fast. The good thing is that one gets informed on mobile through SMS whenever any amount gets debited to the account. The amount may be as small as Re1 – but the SMS comes.
I have yet to use the Debit Card for online transaction or for merchant purchases – so when I would use it, I would write about it.
The Branch as such is definitely good – and officials are quite helpful. If one would like to do banking from the Branch – then its very efficient – I found that the cheques to get cleared and money deposited the very next day! So, I guess, it takes the system to set up – that takes time with BOI – but it works.
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