Mumbai: More people are complaining about banking services than before even as the Reserve Bank of India (RBI) claims to have increased its efficiency in resolving plaints.
The 21 offices of the banking ombudsman received 163,590 complaints in 2017-18 (FY18), marking an increase of 24.9 per cent over the previous year. Most of the complaints were against nationalised banks, followed by State Bank of India and its associates (now merged). This is not surprising, considering these bans also account for 70 per cent of the banking industry.
Disposal rate was 96.5 per cent, compared to 92 per cent in the previous year, according to the annual report of the banking ombudsman scheme of the central bank. This is also the first ombudsman report that takes into account complaints against mobile banking and electronic banking services, with the services being brought into ambit under the scheme in July 2017.
The central bank now plans to float a separate ombudsman for digital banking. It has already started an ombudsman scheme for deposit taking non-banking finance companies (NBFCs) in February 2018 that would be extended to other NBFCs as well, said RBI’s Deputy Governor and appellate authority M K Jain in the foreword of the report.
RBI’s financial year runs from July 1 to June 30. In FY18, the RBI doubled the award that an ombudsman office can offer to Rs 20 lakh, and allowed a compensation of Rs 1 lakh towards “harassment and mental anguish.” Earlier, this provision was available only for credit card complaints. Importantly, 65.8 per cent of the complaints were resolved by agreement and through mediation, compared with 42.4 per cent a year ago. The report said that 148 awards were issued in the year, compared to 31 awards issued in the previous year.
“The major grounds of complaints received during the year were non-observance of fair practices code (22.1 per cent), automated teller machine and debit card issues (15.1 per cent), credit card issues (7.7 per cent), failure to meet commitments (6.8 per cent), mobile and electronic banking (5.2 per cent),” according to a statement attached with the report.
Complaints received on grounds such as problems relating to ‘Pension’, ‘Levy of Charges without Notice’, ‘Loans and Advances’, ‘Remittance’, ‘DSA and Recovery Agents’ and ‘Mis-selling’ each accounted for 5 per cent or less of the total complaints received.
The most complaints came from New Delhi and Mumbai. Zone-wise, North recorded 44 per cent of the complaints, while East accounted for only 15 per cent of the complaints. Half of the complaints came from urban areas, the report showed.
With increased expansion of grounds on which appeal can be filed against the decision of the ombudsman, the appellate authority received 125 appeals, a sharp rise from previous year’s 15 appeals. Awareness was also built up due to campaigns and outreach activities in rural and semi-urban areas, the RBI said.
“RBI’s SMS handle ‘RBISAY’ was extensively used for sending text messages on topics such as fictitious offers of money, secured use of electronic banking facilities, banking ombudsman scheme, etc. An integrated voice recognition service facility (by giving a missed call on 14440) was also made available to the public by the RBI for getting more information on the above,” the central bank said.
Sensex sheds 298.82 to close at 38,811; Nifty shrinks to 11,650
Mumbai: The benchmark BSE Sensex erased early gains to end 299 points lower Thursday as investors booked profits after stocks soared to record highs after BJP’s strong showing in the Lok Sabha polls.
Sensex and NSE Nifty went on to record highs even as Lok Sabha election results showed that PM Modi-led NDA leading on over 300 seats. However after the euphoria during the morning session, Sensex shed 298.82 to close at 38,811 and Nifty shrank to 11,650 on the closing bell.
During the day, the Sensex hit the 40,000 mark while the Nifty crossed the 12,000-level for the first time ever. However, the indices succumbed to profit booking towards the fag-end of the session.
The 30-share Sensex tumbled 298.82 points, or 0.76 per cent, to close at 38,811.39. Similarly, the broader NSE Nifty settled 80.85 points, or 0.69 per cent, lower at 11,657.05.
IndusInd Bank was the biggest gainer in the Sensex pack, rallying 5.23 per cent, followed by Hero MotoCorp, Coal India, Yes Bank, PowerGrid, ICICI Bank, HCL Tech, L&T, Kotak Bank and Bharti Airtel, rising up to 1.56 per cent. On the other hand, Vedanta, ITC, Tata Motors, HDFC twins, Bajaj Finance, Sun Pharma, Tata Steel, TCS, ONGC and Infosys fell up to 5.53 per cent.
Riding on a massive Modi wave sweeping through most parts of India, the BJP was set to return to power Thursday as it led in 298 seats while the Congress trailed far behind with 52, according to trends released by the Election Commission for all 542 seats that went to polls.
“Markets were initially enthused to see the election results falling in line with the exit polls. However, the run up to the D-day was so sharp that it turned out to be a sell on news phenomenon,” said Devang Mehta, Head – Equity Advisory, Centrum Wealth Management.
Participants would now be keen to know the future course of action for bringing the economy back on track, solution to the liquidity situation, the union budget, onset and progress of monsoon in June and most importantly the earnings trajectory, he added.
According to traders, weak cues from other global markets and a depreciating rupee also weighed on investor sentiment. The rupee depreciated 37 paise to 70.04 against the US dollar in afternoon trade. Globally, bourses in Asia ended in the red.
Indices in Europe were also trading on a negative note in early deals. Brent crude, the global oil benchmark, was trading 1.79 per cent lower at USD 69.72 per barrel.
Silver up on increased offtake; gold steady
New Delhi: Silver prices rallied by Rs 200 to Rs 37,400 per kg in the national capital on Thursday, while gold held steady, according to the All India Sarafa Association.
Traders said silver prices rose on pick-up in offtake by industrial units and coin makers at the local spot market. Globally, spot gold was trading marginally higher at USD 1,276 an ounce, while silver was slightly up at USD 14.53 an ounce in New York.
In the national capital, gold of 99.9 per cent and 99.5 per cent purity dropped by Rs 10 each to Rs 32,670 per ten 10 gram and Rs 32,500 per 10 gram. Sovereign gold, however, held steady at Rs 26,500 per eight gram.
Silver ready surged Rs 200 to Rs 37,400 per kg, while weekly-based delivery fell by Rs 66 to Rs 36,234 per kg. Silver coins held flat at Rs 79,000 for buying and Rs 80,000 for selling of 100 pieces.
India PC mkt declines 8.3 per cent to 2.15 mn units in Jan-Mar qarter
New Delhi: Personal Computer (PC) shipment in India fell by 8.3 per cent in the January-March quarter of 2019 to 2.15 million units, registering a year-on-year decline for the third consecutive quarter, according to research firm International Data Corporation (IDC).
Besides, big commercial deals, market remained weak due to weak consumer demand, high inventory from previous quarters, and supply issues for Intel chips.
Shipments in the consumer segment saw a 26.5 per cent dip in the said quarter compared to the year-ago period. The commercial PC market saw a total shipment of 1.35 million units in the said quarter, a growth of 7.3 per cent over last year.
“The announcement of central elections on March 10, 2019 resulted in the model code of conduct coming into immediate effect further resulting in a delay in execution of government projects and impacting the commercial segment,” IDC said in a statement.
However, IDC expects the overall PC market in India to witness a growth in the second quarter. The commercial market is expected to pick up post new government formation in May, while the consumer market is expected to pick up largely driven by back to school campaign by vendors and online sales.
HP maintained its leadership position with an overall market share of 28.1 per cent in the first quarter of 2019, followed by Dell (25.9 per cent), Lenovo (25.2 per cent) and Acer (11.7 per cent).
The notebook PC (laptop) category accounted for 61.4 per cent of the shipment and witnessed a 9.8 per cent year-on-year decline.
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