Value Research CEO forewarns the blind trust on impending Global Financial Consortiums’ ride over IndiaPost Payment Bank

Dhirendra KumarCountry’s leading financial newspaper The Economic Times published a startling revelation on the impending tyranny of Global Financial Consortiums, though moderated in its headline. The concern came from a senior market observer and the CEO of a dependable research firm Value Research. The core of Dhirendra Kumar’s contention is related to the opening of the proposed India Post’s Payment Bank to offer 3rd party Insurance & Banking Products backed by some 50 international consortiums including Barclays and others which shall create a huge matrix.

As per Kumar, this enthusiasm on the part of the Minister is understandable as we tend to take it for granted that the injection of private and foreign expertise is generally a good thing for the market for any kind of product and its customers. Kumar asks as whether this is true in financial products as well. He claims that banks have used the blind confidence that customers have in them to push products that have earned them the maximum commissions while emptying customer’s pockets which IRDA and RBI have been unable to curb.

Kumar gets critical in his observation stating that it’s this free unregulated ride which is attracting the 50 top names to whom India Post’s Payment Bank can deliver “a vast generation of victims”. He goes on to say that financial services are not like telecom, and freely allowing private and foreign players to replicate their previous rapacious conduct on a new and less literate market would be disastrous. He concluded that what these 50 are hoping for must not be allowed to happen.
He suggests that the government has already launched several schemes t0 cover basic savings and insurance requirements. The postal payment bank should thereby focus on these rather than delivering its customers to those adept at “fleecing customers”.
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Hope, the government pays heed to this well meaning advice and protect the unrivalled reach of postal department in becoming an instrument of “drain of India’s wealth”, something being eyed upon by Global Financial Networks.

 

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