Saturday, February 25, 2012
Cyber Crimes in Banking
Phishing, Vishing and SMiShing in Cyber Crimes
Embezzlement, Forgeries, Frauds have been there for long in the banking and financial services. Scandals have taken place in large amounts and a new name 'Scam' has emerged to refer them. After introduction of Technology in Banking and Financial Services, a few more new terms have surfaced. We have heard of Identity Thefts and ATM frauds which by themselves are great puzzle when the industry is catching fast in modernisation. Then we started hearing about Phishing, Pharming (believe me, there is no spelling mistake in these two words), Hacking, Skimming, Trozan, etc. More the technological advancement more the counter-productive and perverted knowledge or research that has evolved. And now, we are reading about Vishing and SMiShing. Very interesting, na! Please click on the heading or go to Google or Wikipedia to search.
Embezzlement, Forgeries, Frauds have been there for long in the banking and financial services. Scandals have taken place in large amounts and a new name 'Scam' has emerged to refer them. After introduction of Technology in Banking and Financial Services, a few more new terms have surfaced. We have heard of Identity Thefts and ATM frauds which by themselves are great puzzle when the industry is catching fast in modernisation. Then we started hearing about Phishing, Pharming (believe me, there is no spelling mistake in these two words), Hacking, Skimming, Trozan, etc. More the technological advancement more the counter-productive and perverted knowledge or research that has evolved. And now, we are reading about Vishing and SMiShing. Very interesting, na! Please click on the heading or go to Google or Wikipedia to search.
Friday, February 24, 2012
Customer Grievances Redressal through Ombudsman
Banking Ombudsman Scheme
I have been reading and teaching on the topic of Customer Satisfaction, Service and Grievances Redressal, etc only half heartedly. Rarely people across the counter have 'empathy' for the customer and volunteer to understand their needs, let alone solve the problems or offer suggestions politely. Two major committees on Customer Service in Banks were headed by Chairman of State Bank of India - viz., Shri R K Talwar, the doyen of commercial banking in India and much later Shri MN Goiporia. Several recommendations given by these two committees were accepted / implemented but there remains a standing complaint that Bankers do not understand and serve the customers. It could be from depositors or borrowers besides the third category of service seekers like issue of a DD., sending / receiving of a remittance, issue of an LC or Guarantee, transfer of an account or funds, settlement of accounts of a deceased in favour of the legal heirs, etc.
All said and done, Ombudsman is a typically borrowed scheme or facility from British and earlier it was for insurance claims and later extended to bank accounts too. A detailed reading of the annual report on Ombudsman 2011 by the RBI gives us a comprehensive picture of the changes that have been effected in the post reforms era as also with the introduction of technology. Consumer Protection Act and Right to Information Act have certainly made a change in customer service. Today, banking or any other system can not take its customer for granted. A critical reading of the report explains the transformation in the banking system towards extending better customer service.
I have been reading and teaching on the topic of Customer Satisfaction, Service and Grievances Redressal, etc only half heartedly. Rarely people across the counter have 'empathy' for the customer and volunteer to understand their needs, let alone solve the problems or offer suggestions politely. Two major committees on Customer Service in Banks were headed by Chairman of State Bank of India - viz., Shri R K Talwar, the doyen of commercial banking in India and much later Shri MN Goiporia. Several recommendations given by these two committees were accepted / implemented but there remains a standing complaint that Bankers do not understand and serve the customers. It could be from depositors or borrowers besides the third category of service seekers like issue of a DD., sending / receiving of a remittance, issue of an LC or Guarantee, transfer of an account or funds, settlement of accounts of a deceased in favour of the legal heirs, etc.
All said and done, Ombudsman is a typically borrowed scheme or facility from British and earlier it was for insurance claims and later extended to bank accounts too. A detailed reading of the annual report on Ombudsman 2011 by the RBI gives us a comprehensive picture of the changes that have been effected in the post reforms era as also with the introduction of technology. Consumer Protection Act and Right to Information Act have certainly made a change in customer service. Today, banking or any other system can not take its customer for granted. A critical reading of the report explains the transformation in the banking system towards extending better customer service.
Thursday, February 23, 2012
25 Years of ATMs in India
Of late, I have been reading a lot of news on ATMs in India. Be it the number of on-site and off-site ATMs set up by different types of banks from the RBI website or distribution in different population centres like Rural, Semi Urban, Urban and Metro Cities or comparison with number of branches vs. ATMs by banks. It is very interesting to note that the first ATM in India was from HSBC Bank in 1987 which means the Indian banking industry got to celebrate Silver Jubilee year in 2012 (this year). So much of advancement also took place in these long years with a wide variety of ATMs being introduced by our banks.
Cross Selling has been taking place through ATMs in a big way. News items have been appearing about ATMs being stolen away by miscreants or innovative frauds being perpetrated by scamsters. These are the counter-productive outcomes, of course. But, it is heartening to note that as on March 31, 2011 as against 74,100 branches of all banks in the country, the number of ATMs have surpassed with a number at 74,500. Great show indeed.
Cross Selling has been taking place through ATMs in a big way. News items have been appearing about ATMs being stolen away by miscreants or innovative frauds being perpetrated by scamsters. These are the counter-productive outcomes, of course. But, it is heartening to note that as on March 31, 2011 as against 74,100 branches of all banks in the country, the number of ATMs have surpassed with a number at 74,500. Great show indeed.
Thursday, February 16, 2012
SBI Global Factors Ltd???
Factoring Services at SBI
After about two decades of existence, it is a sad development to note that the factoring subsidiary "SBI Global Factors Ltd" has accumulated losses of Rs. 125 crores and hence it may be merged with the parent. Factoring services originated in Europe centuries ago but were introduced in India only in 1991 after the Kalyanasundaram Committee recommended for the same. Even though it was envisaged to introduce four Factoring companies - sponsored by SBI in the West, PNB in the North, Allahabad Bank in the East and Canara Bank in the South, only two companies took birth ie., SBI Factors and Canbank Factors Ltd.
These companies were operating all over India, by opening branches in all potential places, some times overlapping in areas served and serving the Small and Medium Entrepreneurs in several ways besides financing against Invoices. The captioned development is a retrograde step and is discouraging for the world of SMEs in India. We have got to wait and watch for the decision of the country's largest bank now.
After about two decades of existence, it is a sad development to note that the factoring subsidiary "SBI Global Factors Ltd" has accumulated losses of Rs. 125 crores and hence it may be merged with the parent. Factoring services originated in Europe centuries ago but were introduced in India only in 1991 after the Kalyanasundaram Committee recommended for the same. Even though it was envisaged to introduce four Factoring companies - sponsored by SBI in the West, PNB in the North, Allahabad Bank in the East and Canara Bank in the South, only two companies took birth ie., SBI Factors and Canbank Factors Ltd.
These companies were operating all over India, by opening branches in all potential places, some times overlapping in areas served and serving the Small and Medium Entrepreneurs in several ways besides financing against Invoices. The captioned development is a retrograde step and is discouraging for the world of SMEs in India. We have got to wait and watch for the decision of the country's largest bank now.
Tuesday, February 14, 2012
The Game Changers : Entrepreneurship
It was on Monday the February 13, I read in the Business Line on page 14 (Biblio File) a book review with a caption "A Toast to IIT Kharagpur". The name of the book is "The Game Changers" authored by three young men, two of whom are current final year students and the third is an alumnus of IIT-K, all working simultaneously for the Entrepreneurship Cell of the Institute. Their names are Yuvnesh Modi, Rahul Kumar and Alok Kothari. The book (262 pages) is published by Random House India and priced at Rs. 150 only. It covers 20 graduates of the Institute in different years who turned to be Entrepreneurs who are profiled. The book has been written and released in connection with celebrating of 60 years of IIT-K this year.
With all my curiosity, I requested my friend Dr Manjunatha, Librarian at TAPMI to get a copy for me. He ordered through flipkart, Bangalore on the same day. To my utter surprise although they stated in the invoice 3-4 days as delivery period on COD basis, I got the parcel on Feb 14, the very next day, in Manipal. More than the book and its contents, I was made to believe the swift service rendered the real Game Changer - M/s Flipkart.com! I am referring to page no. 65 of the latest issue of The Week magazine and the article Write Path, wherein the newborn Flipkart itself is referred to as a Game Changer, the desi version of Amazon! Hats Off!!
With all my curiosity, I requested my friend Dr Manjunatha, Librarian at TAPMI to get a copy for me. He ordered through flipkart, Bangalore on the same day. To my utter surprise although they stated in the invoice 3-4 days as delivery period on COD basis, I got the parcel on Feb 14, the very next day, in Manipal. More than the book and its contents, I was made to believe the swift service rendered the real Game Changer - M/s Flipkart.com! I am referring to page no. 65 of the latest issue of The Week magazine and the article Write Path, wherein the newborn Flipkart itself is referred to as a Game Changer, the desi version of Amazon! Hats Off!!
Monday, February 13, 2012
Committees on Banking in India
Various Committees on Banking in India
One of the earliest Committees on Banking in India was in 1929. It was headed by Shri B N Mitra to study and recommend on 'Central Banking Functions and Agricultural Finance'. RBI was set up in 1934 on the recommendations of Hilton Young Commission, by taking over the functions from the then Imperial Bank of India. In the pre-independence era, two more Committees were set up to study the Agricultural Finance and Cooperative Societies. These were headed by 1. DR Gadgil and 2. RS Saria. After independence, several Committees studied banking system whose recommendations led to establishing of RBI as a public body in 1948, setting up SBI in 1955 after nationalising IBI and so on. Mostly the focus was on extending rural credit and increasing the banking services to the rural areas what is now referred as Financial Inclusion. Between 1947 and 1969 as many as seven Committees were asked to go into various aspects of banking, primarily resulting in announcement of Lead Bank Scheme and Nationalisation of 14 Commercial Banks.
Again during the period between 1969 and 1990, several committees were set up, numbering to 33, mainly dealing with Customer Service (headed by RK Talwar and MN Goiporia, both were Chairman of SBI in seventies and nineties respectively), Financing to SSIs, setting up of RRBs, Simplication of Documents, establishment of NABARD, Money Market Operations, etc. The landmark reference is always the Committee on Financial Sector Reforms in 1991 headed by Shri M Narasimham, former Governor of RBI who again headed another Committee in 1997-98. Interestingly, besides all the above Committees set up for various purposes, there were also about ten Committees, mostly headed by DGs, EDs and Senior Officials of RBI and other experts, dealing with mechanisation and computerisation in banks in India. In all, as many as 49 Committees were set up between 1991 and 2010. Thus, the total number of Committees is at 92 between 1929 and 2010, all focussing on improvement of systems and procedures or introduction of new products and services in banking industry in India.
One of the earliest Committees on Banking in India was in 1929. It was headed by Shri B N Mitra to study and recommend on 'Central Banking Functions and Agricultural Finance'. RBI was set up in 1934 on the recommendations of Hilton Young Commission, by taking over the functions from the then Imperial Bank of India. In the pre-independence era, two more Committees were set up to study the Agricultural Finance and Cooperative Societies. These were headed by 1. DR Gadgil and 2. RS Saria. After independence, several Committees studied banking system whose recommendations led to establishing of RBI as a public body in 1948, setting up SBI in 1955 after nationalising IBI and so on. Mostly the focus was on extending rural credit and increasing the banking services to the rural areas what is now referred as Financial Inclusion. Between 1947 and 1969 as many as seven Committees were asked to go into various aspects of banking, primarily resulting in announcement of Lead Bank Scheme and Nationalisation of 14 Commercial Banks.
Again during the period between 1969 and 1990, several committees were set up, numbering to 33, mainly dealing with Customer Service (headed by RK Talwar and MN Goiporia, both were Chairman of SBI in seventies and nineties respectively), Financing to SSIs, setting up of RRBs, Simplication of Documents, establishment of NABARD, Money Market Operations, etc. The landmark reference is always the Committee on Financial Sector Reforms in 1991 headed by Shri M Narasimham, former Governor of RBI who again headed another Committee in 1997-98. Interestingly, besides all the above Committees set up for various purposes, there were also about ten Committees, mostly headed by DGs, EDs and Senior Officials of RBI and other experts, dealing with mechanisation and computerisation in banks in India. In all, as many as 49 Committees were set up between 1991 and 2010. Thus, the total number of Committees is at 92 between 1929 and 2010, all focussing on improvement of systems and procedures or introduction of new products and services in banking industry in India.
Sunday, February 12, 2012
Saturday, February 11, 2012
Friday, February 10, 2012
Wednesday, February 8, 2012
Sunday, February 5, 2012
Business Line : Industry & Economy / Banking : Postal savings scheme collections at Rs 2,74,720 cr in 2011
Business Line : Industry & Economy / Banking : Postal savings scheme collections at Rs 2,74,720 cr in 2011
I have always been referring about the four legs of The Indian Financial System, all of which are equally important. These are Development Financial Institutions (IFCI, SIDBI, NABARD, EXIM Bank, et al), Banks (Public, Private, Foreign, Cooperative, RegionalRural, and Local Area Banks), Non-Banking Financial Companies (Leasing, Hire Purchasing, Merchant Banking, Credit Rating, Credit Information, Asset Reconstruction Companies, Chit Funds, Nidhis, Micro Finance, etc), and National Savings - Postal Services. This information on Postal Savings Scheme collections at Rs. 2,74,720 crores is encouraging to know the significant role played by these outfits. After all, we are in a competitive world in the reforms era!
Indiawest: GITPRO Holds Forum on Entrepreneurship Opportunities
Indiawest: GITPRO Holds Forum on Entrepreneurship Opportunities
Earlier, I read about TiE spreading the concept of Entrepreneurs outside and in India with several chapters. I also knew about NEN and Angel Networks working on the propagation of spirit of entrepreneurship. Here is another platform towards this direction. More you delve deeper into this activity, more you get to know.
Earlier, I read about TiE spreading the concept of Entrepreneurs outside and in India with several chapters. I also knew about NEN and Angel Networks working on the propagation of spirit of entrepreneurship. Here is another platform towards this direction. More you delve deeper into this activity, more you get to know.
Saturday, February 4, 2012
Thursday, February 2, 2012
B-Schools in India and International Accreditation
Amazing to know about the existence of 4,500 B-Schools in India (vide Business Standard). Are they all under regulation of UGC or AICTE? Not too sure. It is interesting that IIMs and ISB are not under AICTE norms. There are some more who keep hitting headlines and openly release advertisements and award diplomas or degrees without any approval or accreditation. Management Education in India seems to be passing through many trials and tribulations with a host of B-Schools proliferating all over. The steps initiated by AICTE in Admissions, Fee, Courses, etc are being resisted and challenged legally.
On the other side, Foreign Universities are being invited with open arms to give stiff challenge to the domestic system. Superior quality Faculty members are in serious shortage in India and every where else. Industry professionals wanting to teach the B-School students are necessarily to go through the route of PhD / academic or else be treated as 'undesirable' second rate citizens. Only today I came across a new word "trilemma" which seems to be straight away applicable to Management Education in India. God save B-Schools
On the other side, Foreign Universities are being invited with open arms to give stiff challenge to the domestic system. Superior quality Faculty members are in serious shortage in India and every where else. Industry professionals wanting to teach the B-School students are necessarily to go through the route of PhD / academic or else be treated as 'undesirable' second rate citizens. Only today I came across a new word "trilemma" which seems to be straight away applicable to Management Education in India. God save B-Schools
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