Banks must have an SLA for processing requests. For example, opening an account - 10 mins, else the bank employee must explain the reason for the delay.

4-Govt should cross subsidize PSB, taxing Pvt Sector, for their services rendered under social welfare sector like financial inclusion and other priority sector lending. Public Sector Banks if used prudently can be proved a strong medium of poverty elevation, employment generation and empowerment of financially under developed and have not of society and prosperity of industrialist and the country. Presently main benefit of PSB is cornered by richer class of the society and resourceful persons.

3-of large ticket loans and sacrifice/loss to PSB, resulting in ill health of banks more provisioning and less profit. Political and administrative officers interference should be checked, strict penalties should be imposed on erring staff to improve customer service and judicious credit facilities to priority sector and common man of the country who are grossly ignored by so called efficient Private sector Banks. Private banks do not consider education loan ,DRI loan and other priority sectors

2-3-transparecy in Loan appraisal & sanction system to control NPA and stressed assets which is presently main reason of concern, NPA and other stressed assets is around 14% of gross assets.4-curtail Misc. expenses, perks and car etc to improve profit 5-collect capital from public, LIC and cash rich PSU. 6-PSB should be brought under CAG and role of syndication, middleman and consultants should be enquired who are main manipulators in managing large unreasonable loans and even restructuring

1-PSB are last hope of finance & prosperity for common man of the country and should be saved and improved at any cost. PSB are hidden treasure for Pvt Sector due to under valuation and large customer base, who are lobbying for privatisation of these Banks. PSB should not be privatised at all; instead radical reform needs urgently implemented - 1-Merger of all banks in 5 new named banks to save a lot of overlapping expenses 2-Rationalise & transparent top executives selection & staff strength

Presently short term working capital funds are granted through CC/OD with running account facility which is sanctioned for a year and is repayable on demand, but rolled over year after year even if conduct of account is unsatisfactory, making business perennially dependent on banks and ALM difficult for it. Businesses with working-capital-cycle (WCC) of more than 90 days turn NPA for remaining out-of-order for that period. Further, present term loans are repayable in instalments and surplus funds cannot be deposited in them as they cannot be withdrawn afterwards, and are kept in separate deposit accounts unnecessarily increasing their number, workload and cost. Customers lose interest and incur higher risk on idle cash, face hassles in satisfying various authorities about transactions in multiple accounts. Low credit turn-over increases number of time barred and NPA accounts. Evidently, present system is costly and burdensome. Proposed remedy is clubbing of Working Capital and Term Loan facilities into one “Liquid Term Loan Account (LTLA)” repayable in instalments, with running accounting facility and all related traditional and e-products, without any rollover, which will be finally closed through instalments based upon cash generation. Operative Limit (OL) on reduction basis will be fixed as per repayment schedule and withdrawals be allowed subject to OL & DP. Benefits to –Customers running account facility in TL with attached benefits like Cheque Book, Internet, Mobile & SMS Banking, ATM-cum-debit-Card, e-statement, e-payment of taxes etc.; better fund management & lesser interest burden as cash will not be kept idle; lesser tax burden as surplus cash will be deposited in loan accounts and will not earn interest income on deposits; reduced risk of loss of cash; relief from multiple accounts like SB/CA/TL/OD/CC and related hassles in maintaining papers and in satisfying various authorities about transactions in multiple accounts. Banks better marketability of product due to running account facility; reduced costs and hassles from maintaining multiple accounts and related papers, reduced work load on CBS and staff; reduced transaction cost due to IT enabled delivery; no perpetual rollover of limits; improved credit turn-over and increased customer interaction reducing time barred and NPA accounts; availability of longer limitation period due to running account facility; order in cases of longer WCC relief from accounts turning NPA for remaining out-of-order because repayment will be fixed only based upon cash generation; improved income & profitability and reduced provisioning due to lesser NPAs; CRR & SLR requirements and DICGC commission applicable only when LTLA is in credit; CGTMSE/ECGC commission and Capital Reserve requirements on lower balance due to deposit of surplus cash in LTLA; restriction on deposit accounts with other banks. Regulator fewer accounts with lesser burden on the banking system, better monitoring and compliances, better financial results, productivity, profitability, efficiency and customer service; no yearend window dressing by un-availed credit limits put as deposits; lesser NPA and better CAR of banking system; stronger, slenderer and lustrous balance sheets of the banks. Sudesh Kumar Sudesh_kagrawal@yahoo.co.in +918861238780

Presently short term working capital funds are granted through CC/OD with running account facility which is sanctioned for a year and is repayable on demand, but rolled over year after year even if conduct of account is unsatisfactory, making business perennially dependent on banks and ALM difficult for it. Businesses with working-capital-cycle (WCC) of more than 90 days turn NPA for remaining out-of-order for that period. Further, present term loans are repayable in instalments and surplus funds cannot be deposited in them as they cannot be withdrawn afterwards, and are kept in separate deposit accounts unnecessarily increasing their number, workload and cost. Customers lose interest and incur higher risk on idle cash, face hassles in satisfying various authorities about transactions in multiple accounts. Low credit turn-over increases number of time barred and NPA accounts. Evidently, present system is costly and burdensome. Proposed remedy is clubbing of Working Capital and Term Loan facilities into one “Liquid Term Loan Account (LTLA)” repayable in instalments, with running accounting facility and all related traditional and e-products, without any rollover, which will be finally closed through instalments based upon cash generation. Operative Limit (OL) on reduction basis will be fixed as per repayment schedule and withdrawals be allowed subject to OL & DP. Benefits to –Customers running account facility in TL with attached benefits like Cheque Book, Internet, Mobile & SMS Banking, ATM-cum-debit-Card, e-statement, e-payment of taxes etc.; better fund management & lesser interest burden as cash will not be kept idle; lesser tax burden as surplus cash will be deposited in loan accounts and will not earn interest income on deposits; reduced risk of loss of cash; relief from multiple accounts like SB/CA/TL/OD/CC and related hassles in maintaining papers and in satisfying various authorities about transactions in multiple accounts. Banks better marketability of product due to running account facility; reduced costs and hassles from maintaining multiple accounts and related papers, reduced work load on CBS and staff; reduced transaction cost due to IT enabled delivery; no perpetual rollover of limits; improved credit turn-over and increased customer interaction reducing time barred and NPA accounts; availability of longer limitation period due to running account facility; order in cases of longer WCC relief from accounts turning NPA for remaining out-of-order because repayment will be fixed only based upon cash generation; improved income & profitability and reduced provisioning due to lesser NPAs; CRR & SLR requirements and DICGC commission applicable only when LTLA is in credit; CGTMSE/ECGC commission and Capital Reserve requirements on lower balance due to deposit of surplus cash in LTLA; restriction on deposit accounts with other banks. Regulator fewer accounts with lesser burden on the banking system, better monitoring and compliances, better financial results, productivity, profitability, efficiency and customer service; no yearend window dressing by un-availed credit limits put as deposits; lesser NPA and better CAR of banking system; stronger, slenderer and lustrous balance sheets of the banks. Sudesh Kumar Sudesh_kagrawal@yahoo.co.in +918861238780

Scan copy of cheques instead of physical cheques for clearing for net banking account holders Net banking account holders are presently only making all payments and transfers themselves. For clearing physical cheques are presented in bank for scanning and processing it for clearing. Submission of scanned cheques should be allowed for clearing. This will reduce unnecessary paper work, visit to the bank and work load of bank too.

Dear sir in order to improve functioning of banks I think government should cease position of clerks

Loan Application status tracking:To make the loan processing more transparent and to minimize possibility of malpractices in this process, an online Loan application status tracking system should be introduced in PSBs. This system will result in generating an acknowledgement number to be given to applicant mandatorily and the applicant can view status of loan application online any time from any where on internet.Public grievances and delay in disposal of loans will reduce to bare minimum