State Bank of India & Public sector banks – Payment Bank like features to compete

1.RBI gave payment licenses since big banks were concentrating only on traditional money transfer.

2.SBI and banks of PSB groups should use the mobile number associated with A/C to become payment banks
 
3.Recharge of Mobile/DTH/electricity bill/gas/grocery vendor/supermarket/shops by SMS from mobile to the bank number or toll free IVR by easy to use methods to recharge, without logging to any website or mobile app and reducing dependency on internet. 
 
4.Daily expenses on transportation like autos, govt buses, metros needs to be included in these methods to easily transfer to auto driver and MTC buses to avoid change/financial inclusion problem
5.Payments for groceries purchase without debit card swipe. Having a centralised toll free and SMS sending number by customer when he enters a shop the centralised number can be used to transfer money to the shop owner. The customer after entering the shop can call a IVR and enter the shop owner code and the amount to transfer and immediately the shop owner can check if transfer happened to any bank account. The money from the A/C of the mobile no will be transferred.
6.Your team must sit and think/brainstorm how to do the above 3 ideas are going to be done by payment banks. SBI after setting up this system can share with other public sector banks also and earn revenue from service provided to them and PSB’s compete as a whole unit against private payment banks together with single system. Either all PSB can setup a corpus to compete together the new payment banks as these ideas if implemented will bring heavy revenue and public support and help rural pick up in market. Govt should not be asked for funds.
7.SBI can keep some amount in wallet and some can be auto transferred to account automatically after some time.
8.Raising Fixed Deposit rate to promote FD and saying it as a better and safe opportunity compared to equity on returns with comparison chart. FD are major source of revenue for banks but keeping interest rates and tax high demotivated many. So raise interest rates soon. 15G and 15H are sources of income tax violations please correct it by working with income tax to avoid complications in future.

RBI – Functioning and Monetary Policy

•RBI similar to FED, USA must consider Employment generated, GDP growth and other parameters when announcing monetary policy. Plainly sticking to inflation parameter alone wont help. Targeting only one parameter to announce monetary policy is outdated. Inflation – GDP – Employment are the 3 cycles based on points system must be considered.
•Employment data in India is not much clear. Govt based on PAN card information on salary credited through Banks must determine how many employed in proper sectors and unorganised difficult to determine. At least with organised sectors like Govt, Banks, IT, etc,. The employment generated can be calculated. Focussing based on that data to target monetary policy will help. If reduced employment or growth on employment less than 3% then monetary policy can be relaxed. Govt must help with providing employment data.
•GDP data on quarterly basis is not targeted. If GDP threshold is considered and below which the monetary policy will be eased should be maintained.
•RBI to target based on inflation data available or have monetary policy meeting post the quarterly data availability. RBI always pointing to next cycle is not appropriate
•Veto Power with RBI must irrespective of panel size or Equal panel size for RBI and Govt and veto with Governor to maintain status quo
•RBI does not do audit of IT facilities of banks and does not audit data. It does audits which are outdated. Nowadays IT systems have various methods to conceal data.

Banking Issues & Solutions

•Many banks ask us to come directly to branches for several things which is a heavy waste of time. Private banks allow any branch banking and are more user friendly and send required details to home address promptly. Public sector banks ask us to come to branch for everything like ATM pin replacement, new debit card, FD receipt, etc,. If they could send directly to home address it will help and avoid crowd at branches.
•Indian Overseas Bank has the worst online banking service in entire world.
•KYC compliance through post man to home address instead of we going to banks for everything.
•Money transfer through NEFT why restricted for certain hours and not instant. In case of shopping they allow to take place at any time. Either RBI staff should work at night time also anyway computer is going to do the stuff right. NEFT and RTGS at night will help in emergencies.
•ATM/Money Deposit Machine/Pass Book Entry at Govt bus stands, Govt schools especially in rural & inaccessible areas and post offices and all bank branches mainly.
•First credit card from bank without any question with low limit. Currently it is cyclic and no one gives first credit card and states no credit history. Only if some one gives first will credit history be created. Please fix this cyclic problem. Leading to credit pick up in retail