NEW DELHI, May 28, 2019 /PRNewswire/ —
Know the Banking System With Capt. Aman Aggarwal from Money Circle
After many false hopes over the past few years, there appears to be a new dawn for the banking industry in the year 2019. Capt. Aman Aggarwal, Founder Director, Money Circle, shared some of his views on the concerns of Private and Public sector banks and how small steps of caution can help customer secure their financial goals in a longer run.
According to Capt. Aman Aggarwal from Money Circle, Private Banking system is much more safe, robust and successful than its peers. The main reason is their rigid policies, and standard operating procedures. Private Banks have excellent response time to the customer’s queries and request, has better money surveillance system and most importantly their overall commercial terms are better than what Public Banks offers. They don’t mind shedding an extra basis point on ROI to get a client with an implacable track record.
And, that is why Private Banks NPA’s ratio is low in comparison to Public Banks. From dependable sources, Money Circle has learned that 93% of frauds worth almost Rs. 10 Lakh or more happen in State-run lender whereas Private lender accounts only 6% of this.
Moreover, unlike the private banks, the public sector banks are expected to finance risky sector of the economy, like: Infrastructure, Aviation, Mining and Steel. These are the ‘priority sectors’ the backbone of the country’s economy, but these sectors are fabled for stalled projects and development. As a result, they inevitably fall short of paying back their loans. At present, the priority sector loans constitute 40% of the total PSB lending.
To help these ailing institutions, the Govt. of India came up with a ‘Bill’ called FRDI (Financial Resolution and Deposit Insurance). Under this bill banks have been vested with the power to liquidate depositor’s money in case of bankruptcy.
This tool will serve as the last resort in private sector banks only when a merger and acquisition is not viable. And bail-in can only be invoked if one has given prior consent at the time of signing the deposit forms. Currently the bank deposit in India is insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC) and the amount insured in a respective bank stands at Rs 100,000.
Though, FRDI bill presented in Lok Sabha couldn’t get through but the notion of bank deposits being risky, depositors should venture into diverse asset classes like: Mutual funds, bonds, PPFs, equity and real estate are some such options which offer varying rates of return.
Commenting on the Future Security of Government sector banks, Capt. Aman Aggarwal, Founder, Money Circle said, “The way we perceive the absolute guarantee that we currently enjoy on the deposits in bank might change in the times to come.”
About Capt. Aman Aggarwal:
Capt. Aman Aggarwal is Founder Director of Money Circle having ventured to financial sector from Aviation Industry (Capt. Aman Aggarwal is fully trained pilot) and has in depth understanding of banking sector because of his experience in fields like International Trade Finance etc.
About Money Circle:
At Money Circle we pride ourselves in dealing with clients, lenders and industry partners, in an honest and straight forward way, and while this approach is not unique in the business world, we wouldn’t have it any other way.
And most importantly, we are working along with various Private Equity Firms, Global Fund Houses, NBFC’s, Private and National Banks with innovative and intricate financial investment models, that play an influential part in acquiring capital for various ventures regardless of industry and stage through its non-conventional yet solid strategies whereby offering an investment security via full collateralization of debt or equity of distinct asset classes. As a representative for many leading Managed Mortgage Funds & Private Equity Lenders throughout India our Mission is to facilitate high quality Commercial Loans, Construction Finance, Buyer’s Credit & Equity Funding for Reputable Borrowers, while at the same time protecting the commercial interests of Lenders.
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