1. Cash Management
As the scheme of the Govt. is mainly to cover the rural area under financial inclusion, most of the customer service centres have been opened in remote area of the country, which are linked to a Branch ranging from 7 to 20 kms. far from C.S.Ps. The cash management on the part of the business correspondents has become difficult, specially with a view to serve the customers in time and security of cash etc. The Link Branch staff may and may not cooperate to withdraw cash from there and fetch it to C.S.P. in time.
2. Commission is on very low side
The structure of commission being paid by state bank of India is as under:-
On deposits : Nil
“ “ : Annual Average Balance : 0.5% (annual)
“ “ : 50 paise per account per month (Maintenance)
On withdrawal : 0.5% (Min. Re. 1/- Max Rs. 12/-)
(If commission is below Rs. 2000/- it will be top up to Rs.2000/- only)
It is apparent that amount of commission arrives at not exceeding to Rs. 3000 to 4000 per month approximately, while recurring expenses of B.C. is atleast Rs. . 4000/- (not included personal expenses, entertainment expenses to customers, conveyance expenses etc.). Thus in some cases business correspondents are losing from their own pocket every month, and are awaiting for enhancement in the model of commission structure.
On remittance : 2/5 : 3/5 ratio (Bank : B.C.)
On loans : 0.75% to 1% conditional (however it depends totally on link Branch whether to sanction loan or not: thus it is equal to zero for B.C.)
On Account opening : Rs. 20/- per account opened.
3. Details of commission paid not known- whether it is authentic or not
The Bank is not furnishing / delivering any report to B.C. to enable them to know as to what is amount of total business fetch by them. Thus at the time of payment of commission on average annual deposit, its correctness cannot be confirmed by B.C. Similar is the case in respect of monthly commission being paid. The list is displayed on the site of “SBI Times” which is accessible to Branch Manager only, and the chances of misappropriation/ wrong calculation / inadvertence cannot be set aside.
4. No platform for B.C. to get remedy for grievances
There is no proper platform on Bank’s side which may assist B.C. to get remedy for their problems. The Branch staff treat the B.C. as if they are their rival and snatcher of their bread. Neither they are doing their work nor allowing B.C. to work; the crowd in Bank’s regular branches are its evidence. While the maximum transaction limit of CSP in each account is subject to not exceeding Rs. 10000/-, why not bank divert their customers to CSP who remit money upto Rs. 10000/-.
5. Provision of Pass Book not made available
Only Identity Cards are provided to the customers and not pass books, which is very much essential for customer. At any point of time, customer wants to know the balance, if pass book is not with him, how he can know his balance. The printed copy of the last transaction or all previous transactions to be kept by him for ever is not feasible at all. Moreover, in the print copy of transaction, net balance does not show.
It is costlier to B.C. to provide them printout of their transaction rather than entering in his pass book. While in Bank’s regular branches, pass book are being given, why do Bank not apply the same rule to their regular branches.
6. Balance / Statement of customer’s account not available without finger impression
In lack of the above, B.Cs. as well as customers also are feeling much difficulty, because the system is under CORE BANKING, the customers’ relatives remit money from outside, and the customers want to know whether the money has been credited to their account. We only cut a sorry figure in saying that it is not possible without physical presence and giving finger print verification.
7. Erroneous entries cannot be adjusted
Often, by clerical mistake which is human, some erroneous entries take place, which we cannot reverse. The link Branch may or may not adjust it because it is under their discretion. Thus there is always a chancee for loss to B.C.
8. Security Arrangements
No security arrangements have been made available on behalf of Bank. Transactions are ranging upto 100000 to 200000 in an average per day. It is risky in regard with loss of money and life.
There are many limitations which is affecting to B.C.’s business.
i) Limit of Annual income of customer : Not exceeding Rs.60000/-
ii) Limit of total deposit in an account : Not exceeding Rs.50000/-
iii) Limit of total transaction annual : 200000
iv) Limit on commission- on payments :12/- maximum( i.e. if payment is for Rs.2400/- or upto 10000/- only Rs.12/- is admissible. Why one will take interest to pay a heavy amount like Rs.10000/- at a stretch). Moreover, it is ridiculous as to a customer earning upto Rs.60000 alongwith all liabilities can save and deposit a good deal of amount, which matters to get commission to B.C. as average annual deposits.
10. Commission structure on remittances- irrational
The rate of exchange on remittances is @ Rs. 2/- per hundred, minimum Rs. 25/- Maximum Rs..100/- which is too high in comparison to the rate of regular Bank’s Branches which is Rs. 2/- per thousand; this is ten times high, and that too for the people who have been brought under financial inclusion who are poor and deprived of.
This is irrational. This only denotes that the Bank wants to curb the business of B.Cs. and nothing else, because they seem to be competitor of regular branches.
This is a negative view adopted by Bank, rather it should be at par and the regular branches may improve their customer service and fetch their business in a healthy manner.
11. Finger Print Failure
Sometimes, the customers who are villagers and labourers want to withdraw amount from their account but do not succeed because their finger print do not resemble to the recorded one in the concerned account. The reason behind it, is, that labourers or farmers who work in their fields or work in dust, alkali, cement etc., their finger impressions are attrite and do not match, thus payment is denied / incomplete. There is no option left with us to do any good for them except for return them. This is against the Bank’s norms and mandate that a customer is denied payment without any reasonable cause.
All these matters be dealt with immediately too serve the people in remote and to give a success to the Govt. scheme.
D K SINGH
Email : email@example.com