Can MNC banks be trusted?-News

Can MNC banks be trusted?

The short and emphatic answer is: Yes!

All banks in India are regulated by the Reserve Bank of India (RBI), and have to pass the stringent norms that this regulator lays out for banks. So whether it's a PSU bank like State Bank of India or an MNC bank like Citibank, rest assured that the same "policeman" is watching over them and enforcing good behaviour.

Just because MNC banks operating in India are foreign-owned, does not mean that they are less trustworthy. In fact there are some Indian banks like ICICI that are also majority owned by foreign shareholders, and clearly we don't think of such banks as being less trustworthy just because a large part of their shareholders are not Indian. Country of origin or the nationality of the shareholders has nothing to do with how trustworthy a bank is.

Cases of banking fraud and deception are common across the world. In every case, there is always a crooked employee either working alone or with partners in crime who senses an opportunity to dupe unsuspecting account holders. Clearly these thieves are the culprits. But often account holders contribute to being taken advantage of by being too much in the grip of these bank employees.

Whether its out of the smooth talking and fancy concepts these bankers use to impress client, or its promises of unrealistic returns, we believe word for word the stories that these employees spin for clients. And whats worse, we agree to their demands of blank cheques and incomplete forms that the banker assures us they will save us time by filling them out on their own. Employees of both PSU and MNC banks use such tactics.

At the very minimum, use your common sense and judgment, preferably before you blindly follow what the banker tells you. Take what your banker tells you with a dose of salt. Don't be gullible, rather have a healthy amount of cynicism. Just like trees don't grow till the sky, you cannot expect above normal returns from any investment scheme the banker is promising you.

Account holders should be cautious when dealing with their bank by being disciplined about watching over their personal accounts like a hawk. Both PSU and MNC banks are equally trustworthy. And if your "hawk-eye" is on, there is no way anyone will be able to take advantage of you.