Thread by @BankerDihaadi

Sir,

1. Even if we accept your claim, it doesn't make the data wrong.
2. There is no basis for your 70% inactive customer claim.
3. Customers who are less active, are the most difficult to deal with.

https://twitter.com/moneytreexyz/status/1331299575789850624

You must have remembered the Assam Plantation workers case of inoperative accounts at SBI for which FM, without even having basic knowledge of RBI KYC guidelines, publicly abused SBI chairman, and revealed her long time prejudice against SBI as "Heartless Bank".

4. Every 3 years zero balance inactive customers are purged out by the system, of course, after giving notices three times, the making them inoperative, then freezing their accounts, and lastly closing after taking necessary approval.

This all process is done for the so called "inactive customers". Don't forget that manpower and other resources was also 'wasted' in opening their accounts in the first place.

5. Customer who use their accounts once in a year or so are the most time consuming. We have to feed KYC every time they operate their inoperative account. Every single time they forget their signature, their ATM PIN, even lose their passbooks/FDs/ATMs, change mobile number.

6. I don't know if there is any data available, but it safe to say that most of the illiterate and semi-literate customers have their accounts with PSBs and not pvt banks. In most of the rural PSB branches there is one dedicated staff (often temporary) just to fill their forms.

Therefore,
It may sound like inactive customer are boon for the PSBs, but in reality they are liabilities, both in terms of resources and banks' earnings.