https://twitter.com/ETNOWlive/status/1651965029535879170?t=hwLTc6Igcwyrvqz24Jl0Jw&s=19
Very bold statement from one of the most influential businessman in the country. MUST WATCH video
Mr.Kotak says, “all our monies are in the nostro account and somebody in USA can say you cannot withdraw it”… Great punch line statement.
Can someone show a mirror to him. I tell him “All my money is kept in banks in India, someone in Kotak Mahindra bank can freeze my account saying my ReKYC is not done” after having a relationship with the bank for over 20 years. There is no loans, only deposits, retail customer, salary earner or NRI, no credit card dues, no nothing due to them, still, they have the right to freeze the account.
Retail customers keep money in SB account for emergency although they give very marginal returns, when an emergency strikes, you go to the ATM to withdraw, the system says you cannot. Can you even think of what the person will go through in the middle of the night when their loved ones need money to pay the ambulance to take them to the hospital.
Look who is talking here, why try to change the world, pick up the phone and call the governor of RBI and tell who the real whatsoever they are and ask them to change the procedure. They will listen to him, but he wont, because this does not create punch lines for the press.
Freezing is the only event banks are so prompt in doing even without intimating the customer. Customers will come to know only when they try to do the transaction (need to say not all banks).
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Its way worse in PSU bank. Firstly nobody there has idea that if no transaction Is done, the account goes dormant means no net banking or anything. Second for bank of baroda, I was their customer for 15 years, it’s just I stopped using account for a year. I filled a form name, addressed, gender, mobile number etc, 2 passport size photographs, aadhar card Xerox and a hand written letter on A4 sheet to bank manager. Account was activated two days later.
I have heard it’s far worse in SBI 
, for one they charge crazy for not maintaining AMB , who cares if account goes negative. Secondly they will scold customer for being active. Make them do same stuff as above and then they will say lunch break , say like “account activation can be done before lunch only” , so come tomorrow
Do not put all your eggs in one basket
I maintain accounts with 3 different banks for this very reason. Not all of them will be frozen at the same time.
Just one correction.
SBI doesn’t have lunch break any more. It’s been a year. The staff have to take lunch in turns. Again not very sure if this followed by all branches. This is the rule from head office.
Other things I do not know.
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Should i approach the banks which i hold accounts in and ask for reKYC myself. I dont understand. How can a bank treat their customers like waste paper? 
This is India. Expect the unexpected
PSU banks except SBI have improved a lot. Now they call you to inform that your kyc is due in next couple of days. If you still don’t do Rekyc they’ll send sms that your account is blocked. Please visit branch immediately for kyc to get it unblocked. This happened with me in PNB last year. And when I visited, they unblocked it on the spot.
The branch near my house has lunch from 2 to 2.30. They have put up a notice board for it. So it’s official
That’s why I said I am not sure if all branches follow that.
I heard it from at least 6 different branches so far. I am in the empanelment of auditor for SBI and in the last 2 years, all the branches I have gone to had no lunch break. I also made it a point to ask them why is there no lunch break and all gave me the same reason.
So I thought may be they took the memes on them seriously.
During audits they work overtime. Many of my relatives are in PSU banks (sbi, boi, canara). During audits and closing, they work 16-18 hours a day. So may be no lunch time during audit
Anybody knows what percentage of money is in NOSTRO ?
When he says all the money - is it not a systemic risk as US banks are falling one by one !
No. When he said nostro he means the deposits of the bank which are in usd. Deposits could be customer usd deposit or even bank keeping their usd equivalent for normal business purpose. This is true for the Us banks who deal in INR. They need to keep their INR in indian bank.
When kotak mahindra bank keeps their usd with chase (as an example) that ac is called nostro. When chase keeps their inr in kotak mahindra bank that ac is called vostro ac
This is some accounting term used by banks.
Oh may be. May be that’s what they were telling me and I interpreted it as no lunch break at all.
So then I stand corrected.
SBI blocked my mothers account in which she get pension. for few days we thought yono app is broke. when went to bank we were told that we have to do kyc again.
so yes our banks can block our own fund without any notifications.
Even now there is no fixed lunch break. Staff to take 30 minutes, in turn. This is the SBI rule.
This is what even I was referring to.
Middle east is key if dollar needs to be removed as a solo global reserve currency
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Now he says India should learn from US…
if I remember right, his bank was one of the bank who participated in bringing out Yes Bank from its crisis. US must have learnt from this this and JP morgan took over the first republic bank and our own Indian is saying, India should learn from US…