I am not at all surprised at the poor penetration of financial products in this country. Or why people prefer suboptimal  financial solutions. Let me list them:

1. The sheer pain of dealing with institutions: have you thought how painful it is to deal with the post office, banks, insurance companies, mutual funds, and the income tax authorities?

2. You pay for their mistakes: You have given a standing instruction that 22324 of your quarterly interest in a post office should be electronically credited to your bank account. It happens for 4 times and then on 2324 gets credited. You find out (luckily!!) and you go to them, they TELL YOU: “arre core banking mein mistake ho gaya”. No apologies. Solution? use a withdrawal slip stand in the queue and withdraw cash. That will take about 45 minutes and tremendous patience and grit to stand in that filth. So post office is out.

3. You fill the form for a mutual fund and go to the mutual fund office. THERE IS NOBODY WHO IS KEEN to help you to fill the form if you come ‘direct’. However, as this is NOT a top management instruction, some clerk will get in touch with you:

Clerk: Madam…you do not have kyc

Client: Of course I did kyc – my bank just took all the documents from me…and mutual fund also I did about 4 years ago itself.

Clerk: Madam that is bank kyc. Your mutual fund kyc is in cvl so you have to do it again.

Client: Like my daughter’s kyc I have mine also filled out…and here is a copy of my Pan and address proof.

Clerk: arre Madam you cannot use this form. This is for a fresh kyc. You have to fill in “change in kyc” form.

Client: what is the difference, both forms look alike

Clerk: Look maam I am busy….I do not wish to argue…but you have to fill up the new form, attach pan photocopy….

Client: Just because your fund managers are good, it does not mean you jokers sitting in the front desk should be so arrogant.

So mutual funds are out.

4. You go to a bank to give a form 15H / 15g:

Officer: to give a declaration, you need a photocopy of your father’s pan card and a copy of the aadhar card.

client: but he does not have an aadhar card

Officer: then he has to give a declaration that he does not have an aadhar card,

Client: but I have not brought his signature….

Officer: then you have to come again

Client: You did not ask for Pan card last year

Officer: Madam here things change every day….

Client: please take the form today..I will give the declaration tomorow….

Officer: No, please bring all documentss with you tomorrow….

5. Life insurance: the less said the better.

6. Have you tried surrendering a Reliance Mobile connection? I suggested to one widow…just stop using it…they will cut it off one day..for non payment of bill…till then let them do whatever they want….

What I thought of as a small post seems to be good enough to write a book….

http://www.subramoney.com/2012/04/insurance-policy-surrender-2/

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  1. Well said!

    British left 2 things as their legacy to Indians: subservience to white skin and BUREAUCRACY

    This is the only country where you have to run pillar to post for even your basic necessities.

    It is easier for a terrorist to get a fake indian passport than for a citizen to get his authentic one.

    enough said.

  2. Subra Sir,
    I was keen to open an account for my sister in a DP. Everything was givne and everything was ok for address proof, identity proof, pan card etc. including a cheque leaf with “Account Holder name” same as what exactly is her name in application form (including initials, expansions etc).

    We were relieved for once because everything was fine here.. Then came the twist..they told, IFSC code is not given in the cheque leaf only branch address is there, so give a bank statement for IFSC Code. She had a year old statement, they refused to accept it on the grounds that it is an old statement and not a latest one. I don’t understand how IFSC code for the account changes in a year for the same branch.

  3. You face this hurdles with Indian institutes even on abroad. I went to renew my kid’s passport. Followed all the instructions given online.

    At the counter, new requirements starts. Give me the marriage certificate. Next day went again with certificate. The guy then asked me where is the mother. He says both parents presence is must. Unfortunately none of these mentioned online. Finally application was accepted on 3rd day.

    Somehow in our society, politeness is interpreted as weakness and ‘requester’ is always considered as beggar. I had to visit 3 times govt office to pay the property tax. For one property purchase, I paid 1 million INR as registration and stamp duty. It took one full day to complete the exercise and height of all, the reg office has no toilet for visitors. At least 100 sedans were there and no toilet beats me the attitude of the govt offices.

  4. recently approached MFUTILITY local office for submission applications of family members , all KYC Compliant. they asked for original of AADHAR, PAN etc. When again approached with originals , they asked to get KYC re validation , and that too from some others, bank or mutual fund. it is really irritating.

  5. 🙂 My mum just had to go through same situation. She is telling me to hell with your KYC, I am better off going to near by local bank who will give me 9% on Fixed Deposits. That explains whole stuff. This country is dreaming for a superpower but no one has any intelligence and humbleness to reduce the workload, be more efficient and be polite. What we have is pure arrogance. The worst is even common man when he becomes chairman or secretary at local housing societies see the change in attitude. This is the crux of matter. Everyone wants to be a boss and insult others. Pathetic

  6. Some how people without soft skills and ethical thinking entering into the service sector.

    Few words from Mahatma:

    In a speech in South Africa in 1890 Mahatma Gandhi said this:

    “A customer is the most important visitor on our premises. He is not dependent on us. We are dependent on him. He is not an interruption of our work. He is the purpose of it. He is not an outsider of our business. He is part of it. We are not doing him a favour by serving him. He is doing us a favour by giving us the opportunity to do so.”

  7. @Hari:

    LOL.
    that quotation is inscribed in every branch of a famous “state owned” bank notorious for horrible customer service and arrogant staffs!

  8. I think it is all grossly exaggerated to make an interesting reading. Operatives at the cutting edge level of financial institutions, even in Post Offices are very customer-friendly and helpful. MF houses go an extra mile to help out their customers – would be customers too!

    S.K

  9. You nailed it Sir
    I have had trouble with MF houses which asked me to get earlier bank’s approval (manager sign + seal) for transferring to new bank a/c.

  10. further to my comment above, one of my family members approached with original proofs (like AADHAR CARDS, PAN etc) of respective members to respective mutual fund local offices , where their investments are there, for re validation of their KYS , but every one asks to be present in person to them for re-validation. i wonder how a person of a remote village is expected to be present personally for such re validation, then re re validation and then re re re validation to the mutual fund or other office on every whimsical re re re re —— validation requirement.

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