In one of my first articles I had stated the reconstruction of banks by mergers. The Government has decided to do so. However, the difference is there. I think regionalism of the Banks must be done away. Hence Punjab National Bank or Bank of Baroda must not be in existence. That is to say that the banks which must take into fold others are :
central bank of india
state bank of india
bank of india
union bank of india
central bank of india
united bank of india
have new names - syndicate bank of india, majestic bank of india etc..
The Government wants to have mergers of Banks which are having presence in different regions. I feel that there must be just 8 nationalised banks. this will increase transfer of funds within bank and clearing will be decreased. Infact, with this the role of clearing bank can be done away. I tell you how.
these 8 major banks must promote a ATM company.... which will see that ATM is operational accross the nation at regular intervals. hence in mumbai a ATM must be at .5 km at every side. charges can be Rs.3.00 per transaction and people will not mind it.
these banks can have a single data base of KYC(through a KYC co.). this will make them have details of all operations of a client and if he fails in one bank other banks can know the same. also there can be a restriction that if more than 2% of the cheques are bounced by the client accross all accounts he should not be allowed to use cheque books. that signature server can be used to access signature verification also.
the difference of savings and current must be done away. there must be no interest payment and no folio charges. however, each transaction ( debit or credit) must be charged Rs.1.000 ( except ATM for which Rs.3.00). this will redue lot of hurdles and you must be allowed to convert FD od 7 days or more...
with internet, the banking must be made as paperless as possible.
the state cooperatives must be one bank per state.... and all this will result in mega banking companies...
when we can set lowest telephonic tariff then why cant we lead the show in banking... the only thing needed is will... that yes we cannnnnnnnnn...