Does India need more banks?

Commonsense is What is needed is to curb wastage - one can see 7-8 atms in a row side by side. Prime property and infra is wasted. This is poor planning. If we can access any atm then these ATMs can be spread to reach out many.

There is no adequate manpower to attend to customers in all the banks. Time to increase the head count and build better relations with the customers. Nowadays one gets a feeling that you are not wanted in the banks by the treatment meted out.

1. Spread the ATMs - make any ATM withdrawl free

2. Increase manpower in the banks

3. Conduct training to customers on internet banking/phone banking

4. Have separate branches to service large sectors like pensioners/back office crediting / govt schemes etc.

We have many number of banks and branches.Urge is only in reaching people and providing penetrating support by the existing banks in their respective region with innovative banking methods.

There is still a huge group of earning people not making use of any of the banks in their region.It is not because the banks could not accomodate them but b'cos of the ignorance of People.

Yes , India and villages in India need more "Bank branches / extension counters / Banking Correspondents " - may not be more 'new breed ' Banks.

 What will be 'ownership pattern' of the new Banks ? This matters very much.

May they be village / poor friendly ?

They may merrily absorb all deposits .. MAY THEY EQUALLY BE INTERESTED TO EXTEND CREDIT TO THE POOR in reasonable rate  .. ?

May they extend the benefits of technology to the poor ? May they safeguard the hard earned money ( deposits ) of the poor ?

May they go for "inclusive growth" or delploy 'the fund of the common man" for the rich only ?

Another angle to the situation : Of late, several times and in several occassions we have discussed : Mergers and Amalgamations of (Indian) Banks ... then why more Banks now ?

As we have plenty banks instead of increasing the banks the existing banks can be run in a innovative method

I disagree for more banks in India. Does anyone of us know how many type of banks do we have in our country? 

• 1 Central Bank
• 27 Public Sector Banks (Nationalised banks)
• 30 Private sector banks
• 31 Foreign banks

Check this link to know the names of these banks:

http://knol.google.com/k/banshidhar-sahoo/banks-in-india-types-of-banks/4ykrge3a3qyu/3#

Are we really in need of one more bank anymore? Rather than inviting a fresh bank in India, can we not have more innovative ideas, processes and methods within the current banks we have on board. The competition within above banks is at its peak, and every other bank listed above is getting 100s of licenses every year from RBI to open new branches at the places where banking has not reached. They have even classified the segments like, Metro, Semi Urban and Urban. Rural areas have started understanding the term banking through unique different channels provided by these banks. RBI has even kept a mandate for opening more and more No Frills account for the people of rural areas, which has been specifically designed for these people. Eventually, the purpose to have these many bank is getting solved, however, we are still in desperate need to have more innovative methods to provide the cheapest and world class products and features to rural areas.

It is very difficult to enter in to banking field afresh, RBI is making licencing norms stricter. Even if new licences are granted they may find it difficult to sustain, field is very competitive.

I think there should not be more banks. There are many banks existing in rural places also .However its the knowledge and the importance of keeping the money in banks that needs to be explored the the people. Unless people are aware of the benefits of keeping money in banks, there is no use of increasing more banks. 

Also banks can look at leveraging other branches like ATM's or any other method or use innovative methods. In other countries branch banking is less used and online banking is extensively used. This is due to literacy and knowledge.

Some kind of techniques needs to be used to empower the people to come upto standards rather than increasing number of banks.

Innovative ways to reach unbanked areas and population. Financial inclusion and easy availability of credit to help needy to avoid traditional means of credit (money lenders etc). More than additional banks, the industry needs consolidation, so economies of scale and might are achieved.

first of all thanks for all team member to give valuable suggetions.

my openion is that Innovation is the basic need for INDIA, like that if you go to before 10-15 yrs back our polling system uneducated, but presently we use the electronic system, but you can not say that you are implement. this is copyed.

we are educated but basic problem is that we can not educted our lower level.

if lower level educated, then we solve the problem used bu" INNOVATION ". 

Its is not correct to say that India needs more banks.  Government's intention is only to favour some of the business houses.  If this is the case why the government intends to merge some of the banks ? For example State Bank group is being merged with State Bank of India and also there are plans to merge some of the goverment banks to make less number

I would like to  deviate a bit and stress upon micro-financing options as being done by grameen bank and it has a great and inspiring success story which spans over all continents and  decades. THis is seriously the need of the hour .We need to empower and fund all the ngo's wrking in this specific sector.All in all , in my opinion

We do not need more banks but better and faster connectivity , accessibility ,increased  outreach and intelligent usage of resources and services among the existing one's. ATM's, merchant establishments , reward point schemes etc.. are an integral part of this .

Once when the  UID gets up and rolling , we will have accurate statistics of about how many citizens do  not have access to banks and their services. 

Rajiv, while I agree in principle with what you say, I must also point out that we can take that call in India the way we would in other countries. This is a very large country of more than a billion people. So my assesment is that we dont have enough banks to meet the demands of this population while keeping the banks themselves competitive. I feel that banks must be encouraged to open non-city branches more. Right now most of the nationalised banks have a strangle hold on opening banks outside cities and major towns.

With electronic banking having taken off, opening salary accounts exclusively for the purpose of crediting salary during the tenure of employment should eventually end. You provide the bank id, codes and your account id now-a-days the credit can go elctronically to most banks. 

What we need is for someone (RBI?) to set better bench marks for service AND hold the banks accountable for performance. Merely setting bench marks is not enough. We see the board that says you must be able to get a cheque encashed in under 10 minutes in most nationalised banks. But how often does it happen?

I am not in the opinion of new banks in India as we already have a no. of banks and even the banking sector is looking towards consolidation. With each bank getting accounts through salary accounts, current accounts, savings account it is becoming difficult for individuals to maintain these accounts and for banks too it is difficult to maintain accounts which are no longer in use by the user but is still opened for the name sake. May be government should seek soem consolidation in banking industry and avoid too many players.

Whats the use of so many innovative banking methods? Are we only talking about us? We the educated masses, the technology savvy? Or we need "Innovative methods".....so that the majority can be benifitted. Methods, which will make banking easy, hassle free! We have seen everything, debit cards, electronic banking, fund transfers and even mobile banking. Anymore innovative methods? But have we ever thought that its so technical...so critical. I feel its easy but not everyone, not the majority! From the country's biggest banks to the most famous foreign banks, nobody tried to innovate a banking method which is easy yet hassle free!!

no, india does not need more banks but improvement in the current banking methods.

As it is india has sufficient number of Banks, More banks will only clutter the field and may also result in banks going bust those which are in consolidating position as of now.  The need for exploring the ways and means to extend the banking facility to more people through innovative methods like mobile banking, mobile ATMs, ATMs at all Road Transport Depots, Railways etc, opening of no frills account to be incentivised just like the distribution of small coins, acceptance of soiled notes then it may result in bringing more and more people into the banking fold.

Innovative methods can increase the number of customers in rural areas..if they are effective practically..