My Experience with ICICI Bank A feed back.

I read with interest all that services your bank has provided and how ICICI Bank has updated itself with the state of art technology. However, I would like to narrate my exprience as a feed back and definitely not as a complaint. I know this is not the time to find fault but to cooperate in national interest as the implementation of demonetisation policy is on and there are lot of hurdles both man made and otherwise.  

Since the demonetisation was announced, I have not seen any ATMs operating in my area and I have visited two of ICICI Bank branches and the service I got was pathetic. I have all apprecitaion for all the  intended services but I strongly feel if some are translated into action , it would have been praiseworthy. The otherday I called on ICICI Bank branch at Bannerghatta Branch to encash my Travel Card having some dollar balances and after verifying my identity and account and having satisfied that I am the right person, prompt came the service that unless passport is presented, this cannot be encashed or credited to the account. I know banking is a risky business, but banking is also a business run on common sense, judgement and discretion assessing the risk and minimising the risk. I feel encashing and crediting the travel card to my account has no risk as envisaged and he could have asked me to send the copy of my passport  through  email. I have no grouse on this as he wanted to adhere to the rules prescribed.He is well within his right.

Then I wanted some cash for my personal expenditures and presented him a cheque and prompt came the reply that I could withdraw only Rs 2000 and that too in the same denomination, although the RBI has prescribed a withdrawal of Rs 24000 per week. He also advised me to stand in the queue having about 30 persons at that point of time. NO CONSIDERATION FOR SENIOR CITIZEN. I would also add here that since the announcement of demonetisation I do not think I have withdrawn even once through ICICI bank ATMs. I have always seen ICICI bank's  ATMS with OUT OF CASH or OUT OF SERVICE Boards.  I have withdrawn ontly from AXIS bank ATMs and they provided 2000 Re note, new 500 Re note and 100 Re notes.But withdrawal is limited to Rs 2000 at any point of time. Thrice I had taken  Rs 2000 each from Axis Bank ATM to take care of small payments to milk vendors and other retailers. Even Once I could get cash from  Lakshmi Vilas Bank ATM  which is no comparison to ICICI Bank . This is only a feed back as once in a while top brasses also should know what is the ground reality. I have been banking with ICICI bank for more than two decades ie since the inception of the bank.Technolgy is very good,but human involvement would definitely add to the service. There should be difference between Man and Machine. If both are mechanical, Customers have no choice but to turn digital at the earliest. But Senior Citizens have their own limitations. 

Dr T V Gopalakrishnan

(This is in response to the Personal Message that ICICI Bank sent to all Its Customers through email )

Bold Move.

Very bold but not a pefecrt move to prvent generation of black money and corruption 

Apropos your editorial more disruption than Economic Benefit (ET dated 9/11/2106), the arguments put forward therein saying that there are better ways to fight black money do not make sense and only add to the woes of the economy in the long run. The measure of demonetization to fight black money and all its ill effects like corruption, inflation, growth of informal economy etc needs an element of surprise and what Mr Modi has done is very bold, timely, commendable and most appropriate to put the economy on the right track to derive the full benefits of growth and achieve a welfare state in all its sense. Though the Modi Government has given lots of hinds on its intentions to erase black money and corruption and several measures including the recently concluded declaration of black money have been introduced in that direction but the results have unfortunately not been encouraging and the performance of the economy in general and the ease of doing business in India continue to be lagging behind.

The withdrawal of Rs 1000 and Rs 500 denomination notes is the best available solution to eliminate the ills of the economy in the present circumstances although such a measure may have some disruptions and inconveniences which are inevitable in the larger interests of the economy and long term gains of sustainable nature. However, Reserve Bank and the Government seem to have well coordinated to make the withdrawal of these notes very smooth and measures have been in place to minimize the disruptions. All said, the introduction of Rs 2000 denomination notes and Rs 500 new notes cannot be said to be a perfect move in the over all schemes to prevent generation of black money. It may have definitely a nullifying and negative impact.

Dr T V Gopalakrishnan

( Letter sent to ET on 9/11/2016 but not published).     

Make Demonetisation scheme a success story.

                                              Victory is always for Dharma.

The economy in general and the financial system in particular got a shock but a game changing treatment when the PM announced on the 8^th of November at 8PM  the demonetization of high denomination notes of Rs 500 and Rs 1000 to prevent corruption and unearth black money to save the economy from the evils of dirty money. The objectives to combat financing of terrorism with black and fake money, to prevent corruption from the society, and to eliminate the disruptive  practices pursued in the economy mixing black money with the accounted money intelligently and finding  ways and means  to fight election, to distort the economic activities with wrong data on  macro economic factors,  are noble and laudable and needs to be achieved early to take the economy forward and restore the  lost values of this great nation to ensure a welfare state with utmost peace, safety and comfortable life for the people. The need to maintain ethics in business and commerce is paramount and when the people irrespective of their political, economic, social and technological background have wholeheartedly welcomed the PM’s initiative and bold decision to eradicate the black money and are prepared to put up with the inconveniences that such a measure can cause, then where is the opposition and what is the obstacle?.

Having decided to demonetize, and knowing the possible obstacle from opposition parties and people with vested interests to protect their black money hoardings in cash the preparedness of the Government and the RBI seems to have fallen short of and many a people particularly among the poorer segment have been made to suffer giving an avoidable opportunity to fight the policy tooth and nail and demanding a roll back even. The Government could have kept the positive sentiments of the public at large by ensuring smooth implementation which could and should have been made possible keeping the secrecy clause of the demonetization intact, had it acted fast as soon as the announcement was made and all the checks and balances are kept in place with appropriate logistics to serve the rural poor in particular on a priority basis. A bad execution should not kill the long term and perpetual benefits to be derived from this great and very bold move.     .

The Reserve Bank has a key role in ensuring the successful implementation of the scheme and should have been made fully responsible for its fast and smooth implementation without any glitches. The ATMs, banks’ branches and Post offices spread in the nook and corner of the country should have been fully equipped with adequate infrastructure like man power, transport, security, insurance,  note counting and verifying machines and adequate supply of all small denomination notes (including soiled notes and coins if required) right from Rs 5 to Rs 100. Rural and semi urban centers should have been supplied first with these notes in adequate quantities and the normal banking operations with a special emphasis for exchange of old denomination notes with proper identity with restricted numbers of notes. Unfortunately the Touts and Commission agents crowded all the counters and honest and genuine people suffered in the process. This could have been anticipated and effectively prevented. The two way operations in banks Viz acceptance of deposits and lending got stopped and the panic situation to corner as much money as possible in all denominations of permissible legal tender currencies got a momentum with all shortages and chaos every where in the first two or three days of implementation of the scheme. Lack of planning and proper execution to minimize problems for the poor and hapless people was taken full advantage of by the politicians in waiting to attack the government. The cooperative banks and micro finance Institutions working in rural areas and banking correspondents could have been enabled to carry out their normal operations using small denomination notes to come out to the rescue of the poorer segments. The Government could have got mobilized peoples’ volunteers to make the scheme understandable and acceptable by the masses with all inputs. The enforcement agencies like Income tax, Sales tax and Police force could have played their respective roles in keeping a vigil on possible irregularities and mal practices and educating the masses and business establishments to switch over to digital forms of payments to avoid harassments and come clean on all transactions. The issue of Rs 2000 notes could have been restricted to major towns and cities for the initial days as the people are by and large literate and can appreciate the Government’s move and have the entire wherewithal to absorb the problems if any without much of hassles. The Reserve Bank could have issued more of Rs 500 new notes instead of Rs 2000 notes to avoid irritation to find change for this high value note for small value transactions. The Reserve Bank also could have sought the help of Temples, Mosques and Churches and all shops and establishments to stop acceptance of the demonetized notes and to surrender all small denomination notes to nearby banks on a day to day basis to ensure their recirculation. The sensitive areas like village markets, ration shops, small business firms and village industries should have been given priority treatment in the withdrawals and exchange of  old notes with due diligence to avoid irregularities and malpractices with the help of  banks, ATMs, Post offices, volunteers and enforcement agencies. The man power shortages in banks could have been addressed by resorting to appointment of retired hands and volunteers and there should been more counters for exchange and acceptance of deposits of all denomination both illegal and legal tender currencies.

The Government also could have come out with some fiscal incentives to calm the public and mobilize their total support. Reduction of service tax on items consumed by masses, increase in the procurement prices of agricultural commodities, reduction in the prices of fertilizers, small increases in kerosene subsidy,  income tax relief’s for lower income groups, reduction of excise duties and taxes on two wheelers, petrol, diesel and LPG prices would have worked wonders. The losses may not be substantial but the overall gains both monetary and otherwise would be handsome and those who oppose the demonetization would have been silenced.  What the Government needs at this critical juncture is time to make arrangements to replace the withdrawn notes with adequate liquidity and help the people to act with confidence in the scheme of things to overcome the   temporary difficulties caused by the sudden withdrawal of high denomination notes

All said the economic benefits of the Demonetisation scheme are enormous and there is a paramount need to make it a success at any cost. The disruptions are temporary and definitely manageable. Once the normalcy is established  with effective administration and the banking system is back to normal carrying out all its functions, the economic activities would resume in new avatars and all informal activities hitherto unaccounted for would turn formal and get properly accounted for, rectifying the incorrect data on  investment, production, distribution of  economic products, enhancing employment activities  formally helping in the reduction of undeserved subsidies,  bringing in transparency in the compilation of data, movement of  accounted funds paving way for correct assessment of taxes, framing accurate policies based on more reliable  data unlike in the past. With the proposed GST implementation and with the eradication of unaccounted money, the cleanliness of the financial system gets assured and the Government can very well concentrate on improved and enhanced infrastructure,  effective Governance,  housing for all and better  welfare of the people having control on corruption, inflation, safety from terrorism and fair and equitable distribution of wealth. Conversion of unaccounted wealth in the form of gold and real estate needs to be the next step followed by electoral reforms to make the economy more clean and transparent.  

A society with less cash for transactions and more cash for better living standards can be made a reality with enhanced and wide use of technology in the payment and settlement system. Strong administration is what is called for at this crucial time and as long as people are for the change, then what and where can be the opposition in bringing the change for a better living? 

Dr  T V Gopalakrishnan                            

Call for details of holdings of demonetised notes.

The form  prescribed for exchange of notes should incorporate a column asking for the total number of demonetised notes held by the applicant which would ease the supply of replacements. This would also enable the authorities to keep a watch on the commission agents / middleman who help the black money holders. A notification by the Government / RBI asking the public to disclose their holdings as and when they tender for exchange or deposit  the demonetised notes  so that the authorities can have some idea as to how much they can expect to surrender from public. This declaration can be made on or before a stipulated date. 

Dr T V Gopalakrishnan

Introduce additional measures to make demonetisation a success.

Demonetisation of Rs 500 and Rs 1000 is a great move to prevent corruption, black money and terrorism and all connected ills. To make it a success, the Government should simultaneously introduce steps to have some information on an ongoing basis or through Income Tax returns the quanitty of Gold held by people, lands held by them and other types of properties held. If feasible, it is very ideal  time to start a Gold Bank to mobilise Gold from people and convert these Gold into productive assets. Gold Bank can be a separate entity under the Reserve Bank.  This concept of Gold bank would work wonders for the nation and the economy and Perhaps India can be leader and a model to the world on having a gold bank  The hoardings of Gold in the form of black money and otherwise are huge and once the bank is established, and part of the hoardings of gold can be brought to gold bank ,the shortage of funds needed for the economy to develop Infrastructure, and give a boost to agriculture and the Financial system can be a history 

The  gold and funds held in temples should be made transparent on an ongoing basis and they can be made to supplement banks efforts in reaching the masses with small denomination notes. They should not divert their funds to rich and mighty to cover up the conversion of old Rs 500 and Rs 1000. They should be asked to report their holdings of gold, small Denomination and demonetised notes immedoately as otherwise the Rich who are controlling the trusts and temples would take advantage of these institutions to cover up their black money.

Dr T. V. Gopalakrishnan

The way forward .Make the Institutuions strong and accountable

 All Institutions are becoming weak and administrative efficiency has taken a very big hit. 

 RBI is getting weaker and weaker every day and losing its glamour in all respects. SEBI has no

control on capital markets and the corporates dictate terms without adhering to corporate

 Governance standards expected of them. IRDA has never shown its mettle and insurance area 

continues to be fraud frown area. There are mushroom growth of Insurance companies and

 whom they are accountable god alone knows. Public are taken for a ride and once an 

amount is remitted getting back is only a chance. Corporate Hospitals and Insurance

 Companies jointly loot the public their health and wealth. Those  who have got both

 money and power have some respect and are able to survive comfortably and   to some 

extent peacefully in the society but others have no choice but to carry on with all sorts of

 harassment, diservice and indifference meted out to them by any service providing Institution.

 There is no grievance mechanism is the ground reality and anybody can get away 

with all sorts of inefficiencies, frauds, or ill treatment. Things are worsening day by day and

 senior citizens are lucky in a way  that they do not have put up with the suffering for a long

 period compared to the next gneration and youngsters. Things are looking bleak is the feeling 

the  avearge common man gets. May God save the people.

Dr T V Gopalakrishnan

Demonetisation of Rs 500 and Rs 1000 notes.

A very great move from a very great Visionary Mr Modi. Hope he gets all support from the public and various institutions in achieving his Vision of freeing India from the evils of black money, corruption and terrorism.India has all the potential to turn into a welfare nation provided the leaders with vision can provide the direction and make the institutions and the people work with dedication, commitment and sincerity. This is the time for institutions to emerge strong and show their might to take the nation forward keeping the values in tact. 

Dr T V Gopalakrishnan

Well done Axis Bank .

Some banks have done an excellent job to come to the resue of public by making arrangements to exchange demoetised notes with legal tender currencies. Axis Bank in our neighbourhood arranged in our residential society having around 10000 people to open a special counter to exchange the notes and  the staff deputed  have taken very special care of senior citizens. They Excahnged the old notes as per the procedure laid down but ensured that people got both the new Rs2000 and small denomination notes. Very imaginative approach to manage the temporary crisis caused by the demonetisation which the people have wholeheratedly welcomed. People want such banks which can take care of the Nation's needs and PM's  vision  to have a welfare,inclusive  India without corruption and  ills of black money.

Wish more of such banks thrive and  are given all support and encouragement. Some of the public sector banks have let down the Government and Canara bank is an example from my experience. Ttwo days , I visited the  Canara Bank Arekere branch and the ATM Counter attached to the branch around 7PM and both the days the branch and the ATM were closed although the news reports indicated that banks would be functioning extended hours .The security had the courtesy to inform that the supply to the ATM is outsourced and there was no supply for the last few days. May God save the PSBs and the economy. High time the Government reviews the working of PSBs factoring therein interalia the  feedback from the Public and the Customers  and initiate steps to privatise the PSBs which are inefficient, incompetent and indiffrent to function indeference to the vision of the Governmet in letter and spirit.  

Dr T.V.Gopalakrishnan