New Delhi: A purported audio clip of Finance Minister Nirmala Sitharaman taking State Bank of India Chairman Rajnish Kumar to task has gone viral.
Sitharaman, who has been known to lose her cool as finance minister – and as defence minister in the first term of PM Modi – can be heard calling the country’s largest state-run lender “heartless” and “inefficient” in the purported audio clip.
The clip was uploaded on YouTube Friday and was widely shared Saturday.
The purported comments are said to have been made at a meeting between Sitharaman and bankers in the last week of February on issues faced by Assam and the other Northeastern states. The meeting was attended by Assam Finance Minister Himanta Biswa Sarma and officials of the department of financial services.
The finance minister, it could be gathered from the purported conversation, was upset that 2.5 lakh bank accounts belonging to tea garden workers in Assam had become non-operational due to a lack of acceptable Know Your Customer (KYC) requirements.
This had made the implementation of the Direct Benefit Transfer scheme for tea garden workers difficult.
https://youtu.be/On5lr59ikIU
“State bank of India…no good if you tell me you are the biggest bank…you are a heartless bank,” Sitharaman is heard saying in the purported audio clip.
She is heard telling the SBI chairman that the bank should have reached out to the department of financial services to approach the RBI regarding the KYC norms.
“It is your inefficiency that has caused this,” Sitharaman is heard telling the SBI chairman in the purported conversation. “This is utter omission of job. I hold you completely responsible for the failure.”
SBI heads the state level bankers committee (SLBC) in Assam.
SBI chairman Kumar is heard apologising after Sitharaman’s outburst in the purported clip. “I am really sorry,” he is heard saying.
ThePrint reached finance ministry spokesperson Rajesh Malhotra for comment but there was no response until the time of publishing this report.
SBI’s spokesperson also did not respond to requests for comment.
Also read: How government intervention is wrecking India’s banking system
‘KYC compliance issues’
At a press conference after a series of meetings in Guwahati, Sitharaman had said the issues faced by tea garden workers on account of ineffective accounts was being sorted out.
Sarma then added that while 8 lakh accounts of tea garden workers have been opened, 30 per cent of these were not operational because of KYC compliance issues.
“She (Sitharaman) has given instructions to public sector banks that all these 2.5 lakh accounts should be made live…and this should happen immediately,” Sarma said.
On Saturday, the All India Bank Officers Confederation issued a statement condemning the finance minister’s remarks, but later withdrew it saying there was a lack of sufficient confirmation about the sequence of the events.
The withdrawn statement said that the finance minister launched a “vituperative verbal tirade” at the SBI chairman and humiliated him. It expressed its “deep anguish” and resentment for the treatment of the SBI chairman in an “unfair manner”.
Also read: Cabinet approves reconstruction scheme for Yes Bank as proposed by RBI
Late on Saturday night, Sarma hit back at the AIBOC statement in a series of tweets.
He said tea garden workers were being deprived of banking services for the last 70 years due to procedural lapses and lack of alertness on part of local banking officials. Marginalised workers, he added, were not able to access the Rs 5,000 transferred to bank accounts of tea garden workers by the state government.
He expressed gratitude to Sitharaman for “championing the cause of these deprived workers” and for her proactive stance in solving the problem. Government sources said his tweets seemed to confirm the outburst and the audio clip were genuine.
1/5 SBI Tea Garden Issue: It appears that the All India Bank Officers’ Confederation has not understood the context. In 2017, Govt of Assam opened nearly 8 lakhs accounts of tea garden workers, one of the most marginalized sections of Assam. @nsitharaman @FinMinIndia pic.twitter.com/cSBf2khwXz
— Himanta Biswa Sarma (@himantabiswa) March 14, 2020
Quoting Sarma’s tweet, Sitharaman also tweeted the statement of AIBOC which said that it was withdrawing its earlier statement and that it was “erroneously issued”.
https://t.co/5nRSVG9pxW pic.twitter.com/EIgwa9sZ5K
— Nirmala Sitharaman (@nsitharaman) March 14, 2020
This report has been updated with tweets of Sarma and Sitharaman.
From all of this it seems RBI Makes norms regarding KYC and SBI has to ensure that they issue all these documents correctly and timely to all the people comming to open their accounts at their branch as any delay in issuing these KYC documents by SBI delays or ends in freezing the newly opened accounts.
And as all of this also points to the fact that since the salary of SBI employees is being paid by the government from the taxpayers money ..like in the cases of most of the commenters here..they should not bother about profitability and spend 100percent of their time issuing KYC Documents so people don’t suffer….
This govt only plays a blame game,, the SBI failure is a failure of the FM,, then why the hell is she seen blasting the SBI Chairman,,,,, fire the RBI governor eho reports to her and the govt,,, this govt andvtheir clowns are just a bunch of blatant white liars
If KYC is like what will happen if CAA – NRC is done in India
Employees or staff working under this scheme will make more money for their service
Total investment for this work is less than total return after investment in this project
In effect this will divide india into 2 parts with or without citizenship person in India
After seeing Modi, Amit Shah, Nirmala Sitraman I am loosing hope on BJP… because they wont agree on thier failures and simple blame others…please i will Request BJP, RSS, VHP and BJP alliance please think these people …are they doing correct because this is not Modi failure it is BJP failure.
You are 100% right. Now all these hazards with KYC have been created by BJP in power. Previously KYC compliance was not tough to account for. But BJP in power included many things and many useless paper work and the system have became so complicated to create customer ID that it takes much time to complete an account.
If KYC is like what will happen if CAA – NRC is done in India
Employees or staff working under this scheme will make more money for their service
Total investment for this work is less than total return after investment in this project
In effect this will divide india into 2 parts with or without citizenship person in India
I request SBI Chairman to ignore the comments of Finance Minister. She is under pressure as she is unable to perform, control the economy. None of her measures are working to improve the economic conditions of India. She is treating Indian Economy like homely kitchen. A clear sign of her frustration to shout on her team members.
SBI chief must be Congress left hand doing for Congress party all these.He should be stripped of all his power transfer to smallest village.
I completely agree with our FM. Some branches of PSB’s are the best but some are very bad. It was a nightmare when I tried for an educational loan for my daughter. Finally I did not even cross the application stage of State Bank of India and Bank of Baroda. Currently my maid is being harassed by Union Bank. She is not allowed to withdraw money from her own account and the passbook has been kept back by the bank official. Now the poor illiterate woman has no proof.
FM misinformed about KYC norms strict implementation under Government /RBI mandatory directions.She had to be taken sportively how people are suffering under KYC norms stipulated by the Government.She is another person in Pujari while framing rules of KYC.
Last year I had submitted KYC and this year also they want KYC….
Actually SBI doesn’t want to know their customers. & They are very rude to their customers.
Nonsense bank
Sbi bank officials deserved this. Their pathetic service. Good job by financial minister.
A politician is a politician, whether it is nirmala ditaraman or chidsmbaram. They are not interested in listening to alibies. They want their orders to get implemented. I just involuntarily remember JANARDAN POOJARI. Don’t know why.
Worth less FM of India.. post chhod deti to jyada acha rehta.. Rajnish Kumar ka pair ka juta banne ka aukat nahi..
SBI is really worst bank in India, FM has done good job such illegal and also they should penalised for such behavior ,so that it should not be repeated again.
Abe Banker ko bolta hai government toh bahut accha kaam kar rahi hai chu…
You must deposit all ur money in YES Bank. Its one of the best bank in India on many parameters. One of the best customer service.
KYC compliance comes directly under the purview of RBI. SBI chief is simply following the instructions set by the RBI. It’s better she should monitor the fiscal deficits first rather than firing over SBI chief who is the only PSB giving profit to government. When all have got down SBI is giving it’s all to save the economy. If she was that good or the RBI was good YES Bank could have been saved. Because of her untimely measures the economy is in bad state.
Our FM is a completely failure FM of independent India. Market is slowly going down day by day. Large number of people are being jobless. Creation of New jobs at the lowest level ever.
Banking industry is facing huge pressure of government’s political motivated schemes. Banks are doing well with limited number of staff.
KYC is the basic need of banking industry. Without KYC, no bank will able to take risk to outflow fund.
Perhaps FM is doing drama and want to pose like a strict administrator without knowing the the basic principles of banking.
Who makes the laws? Government
Who implements them? The Rbi.
Who follows the rules? The banks.
Sitaraman why make kyc rules when you don’t want them to be followed?
It is usual in private sector job on review of job. SBI is now worth less eg,for changing mobile no in current account it took four months ,finanally I have to transfer my SB account to current account branch and delete PAN no from SB account then many procedure. Branch level people donot know the change in soft ware. Who is responsible for this ? Head of organization or else.
Finally ON What intention he share to public,it is to study.
FM is correct in her action to give immediate relief to tea garden workers. Her point with SBI chief was to apply discretion against the rule of law, in situation like this born out of ignorance of workers for adherence of KYC rules. This episode need not be taken seriously by both the parties.
Situations, sometimes demamands to use discretionary powers to overcome serious hurdles experienced by innocent workers of tea gardens.
If discretion is used and something like fraud happen nobody save the official. I have worked in Vigilance department. It is necessary for the RBI to take a call and issue liberised KYC guide lines in such cases. It is unfortunate situation happened in meeting and it’s audio clip circulation.
Then comes terrorists using same as example of tea workers
Well done, Nirmalaji. Don’t ever flinch from taking the fat bandicoots to tasks.
It is fact that day by day the working style of SBI is going down, behavior of staff is not good, they think they are the only bank in India rendering service to Government employees and people don’t have any choice.
the worst bank ever is sbi… as a citizen of india I would tell definitely it’s the worst bank manerless people… they treat people so badly and they make people wait for no reason.. office staffs are real worst …. honestly heartless people….
No need for such anger madam once you come to this seat you will no the difference. you are rich so u forgot the poor one. No liberal no differences this is democratic country. Such anger as an indian leader dont suit you. I am an ordinary man not strong as you. But i know how to be good to all.
Will she show the same courage to shout at Modi who announced Demonetisation which has put million poor in a mess. As a matter of fact, the number of ATMs are slowly being reduced and man even in city is short of cash. Also at whom she will shout for first introducing ₹2000 which is slowly being withdrawn now. Who is responsible for spending money on this new currency. It seems Modi and Shah has shouted at her for not getting donations for BJP from SBI and she is now passing on her anger on SBI Chief. If Chief has some dignity and self respect he should put in paper. Ms Seetharaman can resign as FM and become Chief of SBI. If the country’s FM can be rude, imagine how the PSU staff would behave with customers
Rightly said by FM
The problem appears to be that of updation of KYC which is mandatory for Banks to classify accounts as High/Medium/Low risk, as RBI guidelines. In the past RBI imposed penalized banks for non-compliance. The occupational hazards in banks have multiplied off late and every transaction is a commercial risk and the personnel must give adequate weightage to this factor especially in the present circumstances of loans/advances becoming bad and NPAs especially those of corporates/govt.sponsored schemes and also agri. Loans what with loan waivers announced by successive GOP’s and not say YES from the bottom of heart by banker for every proposal, which exactly is what happened with YES Bank. The FM should have thought about these risk factors before bashing the Chairman of the biggest bank, SBI, which often comes to the rescue of GOP be it investment in YES Bank now, or undertaking the management of GOI Sovereign Bonds / Electoral Bonds etc., and many more. This issue which should have been privy has now become viral and damaged and irked every banker and will he now perform his functions whole-heartedly or stick to laid down rules to avoid taking risks.
Honrable minister realised the now that SBI is fraud bank. No kyc done for Vijay Mallya and gave people money to him. I realised long ago when SBI cheated me in my car loan and looted my money and gave to Vijay Mallya. People of India should realise and stop dealing with this bank as soon as possible. Shameless bank.
Good let’s migrate to YES bank, the private bank that is rescued by SBI
SBI is too slow.
It took me 7-8 days to open an account with their Model town Ludhiana branch.
SBI Doesn’t care about its customers’ time.
FM is perfectly right in tightening them.
RBI’s current Governor and all past Governors’ pension should be stopped for the NPA mess they have created.
SBI is too slow.
It took me 7-8 days to open an account with their Model town Ludhiana branch.
SBI Doesn’t care about its customers’ time.
FM is perfectly right in tightening them.
RBI’s current Governor and all past Governors’ pension should be stopped for the NPA mess they have created in Indian Banking system.
Honourable FM is Right
Of course SBI is heartless, due to their so called strike 3 days the bank was kept closed, and the timing of the strike really hurt the people, Bankers have a fairly good salary package and they should think of common people’s inconvenience caused by this strikes , so many senior citizens and pensioners were waiting outside the bank it is really shameful.
Then comes terrorists using same as example of tea workers
She her self is mind less as she don’t know the her department and RBI issue guidelines regarding KYC. We, the bankers are being penalised for compliance and non compliance also. Worest situation. Why should we request for permission to not comply guidelines. If she cares somuch about general public why did not she herself issued guidelines much before.
She her self is mind less as she don’t know the her department and RBI issue guidelines regarding KYC. We, the bankers are being penalised for compliance and non compliance also. Worest situation. Why should we request for permission to not comply guidelines. If she cares somuch about general public why did not she herself issued guidelines much before.
Might be its isolated incident, i am victim of branch managers arrogance when i go for any information, they don’t offer seat to customer when we go to meet them. Unions may raise voice in support of their chairman,.who will come to customers support if any argument ensued in the bank for deficency of service…
Secondly, if, customers unable to repay loan opt for settlemente,afterwards the same customer again apply for fresh loan his application will be denied fresh loan citing bank circulars..one may not understand when they advertise for OTS scheme for borrower how can they deny loan further after settlement of earlier loan
Thirdly, when bank unable to do away with
word settlement in cibil..how will cibil operators can do the job.. really incredible
Finance minister does not know ABC of kyc norms of accounts. Due to such political leaders whims the present scenario of Indian banking industry is downtrodden. All financial scam originated from different Modi’s outbursts during this Govt. tenure. Who is responsible for these scam? Only the poor bank officials for immediate implementation of government order.
The KYC requirement in no doubt is necessary. But the threat of freezing the accounts of old existing customers, that too who happened to be senior citizens, to approach the bank in person, where his account is opened and operated, is atrocious. Thee should have the facility either to update his KYC through online or by presenting the information to the the branch of the same bank, situated close to his home. I am told that such process is not acceptable to the bank. Since the d date is fast approaching, the SBI should provide easy alternative to secure the KYC details from the customers.
So respect also goes up and down like sensex…may be in reverse way.
The FM’s outburst is saying the truth in the face!
SBI generally speaking, is a bunch of highly inefficient and ineffective staff. They either pretend to be overworked or in a state of permanent disgust for customer service. Their only saving grace is a picture of the Mahatma which has a tag line: “customer is not an interruption; he is the purpose of it”! And we all know, they don’t mean a damn word of this quote! It takes the person in charge of the lockers 1-full hour to get up and open the locker – that too in the first hour of business. You are lucky if your locker was at least dusted in the last 5-years. Expect 1” dust on the locker door.
That’s SBI’s performance metric.
I think these banks are never ready to help needy, sincere and honest common man but they may be interested to help corporate like Mallya and many mores, of course, may be after some great personal gains
This is one occasion where I really agree with Nirmalaji. Rules are for humans ,humans are not for rules. They should remember this when implementing CAA,NPR, NRC etc.
FM can’t be further from truth on this issue. KYC is just an excuse noawadays used just to harass hapless customers like tea garden labours. Is SBI in the business of tracing naxals or administering banking service. They need to get the basics right.
This arrogant lady is good for nothing….. No knowledge at all….. But she ‘ll bombard everyone. Even SBI chairman.
Snubbing of Bankers is nothing new. I still remember how Janardhana Poojari insulted Bank Manager, when he started his “Loan Mela”.
More reforms are required for the public sector banks. Due to many government savings and transactions, the SBI has become very busy and the behaviour of its employees has become very rough. That is why people are moving towards private banks for their good service and high rate of interest. But after the the case Yes Bank people will now move towards nationalised banks. Both the RBI and government should restrict and control all the private and PSU banks properly for the safe savings of the money bof people.
Well, worse is to be worthless and that too for a minister
I know how this bank works. They have scant respect for poor customers. I am now 76 and 55 years ago when I wanted to pay university exam fee as a teacher candidate., concerned clerk never looked at me busy talking to his colleagues. When I reminded of him his duty looking at my chalian he cursed me that I will not pass this exam. Attitude even today remains the same. I am glad today someone is able to question them
FM was right about tea garden workers.
NIRMALA SITHARAMAN,. Keep doing the good works.
SBI has always been a slave of the ruling government. Their CEOs are spineless and dance to the whims of the finance ministers. NPAs are due to politicians, bureaucrats, crony captialists, et al. Looters. Economic terrorism. This is the norm. Of late, the SBI chairpersons seem to be more spineless. Shame. I agree with Sitaraman’s firing as the CEO deserved it. He has to be proactive in helping tea garden employees who are very poor, after due KYC processes. Why delay?
The PSBs, particularly SBI, do not have human touch with their own customers, who are otherwise their bosses. Never guide the customers properly. No single window solution. It is horrible to see the Senior Citizen customers, who keep huge FDs / PPF money, wait for long time to get their grievances redressed. Even educated customers endure. Can understand the outburst of FM while taking up the cause of the remote less educated / illiterate tea estate workers. They should have been educated and guided properly before taking extreme step of non operationalising their accounts.
FM was right about tea garden workers. She is right to get ‘mad’.
NIRMALA SITHARAMAN,. Keep doing the good works.
This is called real leadership. Government can not compromise anything which goes against the poor. Just because of kyc, help for poor can not be overlooked. I support finance ministers deed in this regard.
Gud Job by FM sitharaman… SBI was always a heartless bank… I see a lot of people disappointed everyday in SBI… I hear Himanta Biswasarmas voice in background…!
Yes, she is right, they should have reached the poor tea garden workers for kyc and provided them with bakning service insted of simply making it inoperation, it shows their irresponsibility