Friday, August 17, 2012

Citibank: Frauds and stinks



Google search on Citibank gives results, with most links of fraud stories. There is no surprise. Its credit card business is run on most customer unfriendly terms. Has anyone heard of a bank charging its customers 42% annual rate of interest. It will shock people out of their senses. The Citibank charges a whopping 42% annual rate if customer makes partial payment of the total outstanding.  

The Citibank will easily put to shame even the village money-lenders. Village money-lenders, made infamous by Premchand classics, would have hardly charged anything, that the Citibank does. 

When its customer care was asked how could it charges 42% annual rate, half a dozen of its executives parroted, that they intimate customers in the monthly statement, that they would be charged in the range of 2.1% to 3.7% per month, which translates to 25.2%-42% per annum. However, the Citibank imposes the highest in the range, that 42% to all the customers. One of its executive explained, it is so because of the automated billing.

Does the government or the Reserve Bank of India allows Citibank to impose such an obnoxious rate of interest? Ask its executives, they will have only one answer, that they comply with the regulations of the RBI. But under what RBI regulations, does Citibank impose 42% rate of interest, none of these executives have any answer. They will say -- We will e-mail you the RBI guidelines on this. None of these promised e-mails ever come. 

Muge Yuzuaka with e-mail id m.yuzuak@citi.com (m.yuzuak@citi.com) heads the Citibank credit card business in India. When it was asked from her to provide details of the RBI guidelines under which the Citibank charges 42% interest, her representative Nabil Khatib, Manager-Executive Response unit, replied saying: "We wish to clarify that Citibank is compliant with all regulations laid down by the RBI." But there is no mention of which RBI guidelines. 

Khatib, when asked during a call that he made, if he had ever heard of 42% interest even being charged in villages by money-lenders he was at loss of words. His defense, also repeated in the e-mail, was that the Citibank intimates Most Important Terms and Conditions (MITC) in its applications, statements and on its websites. 

However, when the Citibank executive comes to sell the card, he hardly mentions such terms and conditions and just takes a signature and one is lured by its multi-national reputation. "Your rate of interest initially is 3.15% per month (i.e.37.8% annualized). This can change periodically based on your spend, payback and utilization patterns. Your rate of interest can increase upto 3.5% per month (i.e.42.0% annualized), in case of default.The default interest rate will apply till the time the account is regularized plus 3 months of performance review period," Khatib explained in his e-mail. 

This top ranking Citibank official has no shame for utter lying. This is for the reason, that even without default the Citibank imposes 42% interest, notwithstanding the record of the customer. 

Worse is that most of its customer care centres are outsourced where people with no understanding of banking system takes calls of  customers. Ask them about RBI regulations, they will fumble for words.

Ironically, the credit card companies are functioning on their whims and fancies, with the RBI and the Ministry of Finance always keeping blind eye on them. A credit card mafia has taken over the reigns, which is being run in the most unprofessional manner, with no business ethics. 

Citibank had few months ago hit the headlines for swindling Rs 400 crores from high networth individuals in Gurgaon. The company washed off its hands by blaming some of its officials for the scam. 

The murky deals of companies like Citibank are going freely apparently as there is no governance existing in India for the last three years. Take your eyes to any field, it appears the government has mortgaged people to the greedy corporate sharks with no exception.  

Sunday, June 17, 2012

Summer of 2012

Pranab Mukherjee's nomination for Presidential election has cast a shadow over the political process, which is fraught with many ramifications.


Indian summer of 2012 will stay in memory for long. A lot of political drama took place in New Delhi, while more may also unfold. Aftereffects of the way India's next President has been chosen may be felt for a long time. Authorities have been challenged and belittled.
Pranab Mukherjee has impressive political experience matched by few

Seventy two hours after two regional kshatraps -- Mulayam Singh Yadav and Mamata Banerjee -- outmaneuvered UPA chairperson Sonia Gandhi in picking India's next Presidential candidate, Finance Minister Pranab Mukherjee profusely thanked all for showing trust in him. 

Another forty eight hours later the self-declared crusader against corruption -- Arvind Kejriwal -- cast his doubt on Mukherjee. He tweeted that there are serious allegations of corruption against Mukherjee. He had earlier done what no politicians had dared to do by accusing Prime Minister Manmohan Singh of corruption. 

Kejriwal may not be just a stone pelter. He is standing up to the might of the establishment. It's not a joke. 

Mulayam Singh Yadav has gone on records to say that he pressured the Congress to declare Mukherjee's name. What he is not spelling out is that he played his role in the act which might have been scripted by Mukherjee himself. As a politician with tonnes of experience in outsmarting others, Mukherjee may have known that Sonia Gandhi could have cut short his journey to Raisina Hill. 

Authority of Sonia Gandhi has clearly been belittled. She is stated to have met Mulayam Singh Yadav twice in those 72 hours. This was a job that her political advisor Ahmed Patel did all these years. If Mukherjee was not her choice and she was forced to name him, then her political hold has clearly diminished. The perception of weakened political grip would make her vulnerable. This is a bad news for Congress.

The UPA-II has been damned as one of the most bureaucratic government that India ever saw. Likes of P Chidambaram, Kapil Sibbal and Salman Khurshid represent UPA-II. Commentators have already written their political obituaries. 

Mukherjee is one last political face surviving in UPA-II. His exit would strip UPA-II of all political credibility. Though he rushed to welcome Ramdev at airport and watched while scores of CAG indicated scams unfolded, Mukherjee still blunted all round political attacks on UPA-II so far. 

Mukherjee's absence from treasury benches in Lok Sabha will surely make UPA-II a sitting duck. 

Irony is that after a semblance of consultation on Presidential election, which included Sonia Gandhi's talks with Ajit Singh, Ram Vilas Paswan, T R Balu -- consensus is being thrusted on Opposition NDA on Mukherjee's name. Worse is that the NDA is wavering in calling the bluff. Therefore, Mamata Banerjee has rightfully emerged as the true voice of dissent.

Positioning of 2014 or a mid-term poll has already begun. NDA, which looked as if dead for some years, all of a sudden appear netting many friends. Summer of 2012 will prolong, as even Monsoon wants so.  

Wednesday, June 06, 2012

Raisina hill calling

Short-tempered Pranab Mukherjee must now have started believing himself in the reckoning for India's race for next President. He is clearly an old world relic. Seen as a man who carries more weight than he can handle, Mukherjee has reasons to dream that the Congress president Sonia Gandhi gives him a retirement solution in Raisina Hill.  

Since taking over as the Finance Minister, Mukherjee has taken India's economy down the hill in quick time. Economy is in shambles. People are price hit. Employment generation has frozen. Savings of middle class have gone. Necessities of the day are beyond the reach. Still, Mukherjee is the darling of many, who day-dream him as the next President.

New Delhi's disconnect with India is self-evident.

However, Politics does not oblige day-dreamers. Politics is about cold-blooded calculations. 

Gandhi will weigh many a things than thinking of a retiring solution for Mukherjee only. The Congress led UPA is hurtling down. This may outweigh all other reasons. 

Many believe that the UPA has already slipped into the self-dug grave. More people think that Prime Minister Manmohan Singh led UPA-II is busy in digging much deeper grave for the Congress. 

UPA-II's disconnect with the Congress is also quite apparent. Nine out of 10 Congressmen say that they would have to be out of power for quite a long time. It takes some time for people to forget the pain giver. When the world is talking of gloom, Gandhi could not be so insulated. She has to think of future. She has to plan for the prince (Rahul Gandhi).

Late Prime Minister Rajiv Gandhi had arrived unannounced. His mother had clearly not planned for him. Mukherjee had made his ambition clear, when he had stated that the senior most member in the Cabinet should succeed Late Indira Gandhi. However, there was Giani Zail Singh to keep the Family protected. Will Mukherjee be a Zail Singh if a situation like that of 1984 arises? 

Most in the Congress and also in government want Manmohan Singh to retire. For the services that he has done to the nation, he has his claims for Raisina Hill. He has enjoyed unconditional support of the Gandhi family all these years. He will not be a person to betray the trust of the Family, if at all Rahul Gandhi needed a helping hand from the Raisina Hill.

The Congress leaders are of the view, that with Manmohan Singh in Raisina Hill they would have another two years to win back some of the support or attempt to climb out of the self-dug grave. Mukherjee could be the Prime Minister for two years. Even if the Congress is routed in 2014, Rahul Gandhi can concentrate on Mission 2019 with free hand. He will be about 49 years of age by then and would have gathered enough political experience. After sitting in Opposition for five years, the Congress would gain due strength as well.

As one Union minister said that Sonia Gandhi is in a quandary akin to Hamlet. "To be or not to be". The minister may be wrong also. She must have made her decision already.

However, the Congress, as Harish Khare had remarked once, is a status quoist party. The Family does not burn mid-night oil to satisfy the kite flying industry. So, there would not be a surprise if the Congress pulls out of its hat someone like Pratibha Devi Patil.  

Monday, May 07, 2012

Mukul Pathak's box

After rushing through a dusty lane in a crowded Munirka market in South Delhi about 40 or so young men and women, all aspiring to become IAS or IPS officers, had settled in a rectangular box called a classroom, and waited for a man, who could spoon-feed them to join the world of babudom

The box was reached after climbing up stairs with reddened wall. The Babus too work in holes in huge buildings, which can be accessed through stairs with walls showing marks of freshly splashed paan. The budding babus had also to breath in heavily high dose of ammonia, which welcomed all from open toilets on the way to the box. 

A stout and fulsome bodied man walked in and without wasting any moment faced the whiteboard and wrote MUKUL PATHAK and underneath PSYCHOLOGY. The man had arrived; and there was collective sigh of relief. 

The men and women knew that this was the man who had the key to their journey forward in red-beacon ambassador cars. After declaring his name and the subject, he faced the herd and showed all his teeth in a smile, which would last forever in memories of the herd. With wide lips and well polished teeth, the man could easily have been an ambassador for toothpaste advertisements.

With smiles shared and few introductions done, Pathak hammered out a number of definitions of Psychology, with utmost stress on the subject being a scientific study of human behaviour. This appealed half of the box, which belonged to the class of engineers, who had the nose to think of being intelligent and class apart. Also followed jargon like Psychology is a subject of scientific study of cognitive skills. 

Definitions satisfied most, that the man was capable to give them a leg up.

However, there were some who wanted to test the man and so shot off questions to their abilities. Pathak had seen enough of them. So, he latched on to the offered opportunity and demolished the collective pride of black sheep. Pride bruised, the doubting souls surrendered fully. 

Some of these black sheep had left Pathak's class mid-way and some found to their dismay, that civil services prelims was quite a tough nut to crack. 

With bundles of notes from which he would read out slowly so that all could write down (wonder why did he not give the copies to avoid this exercise) Pathak would mention studies of Gallaghar, Gestalt and so many to lay bare the world of psychology. 

The studies would mostly be done on rats from which inferences would be drawn for humans. Some experiments would also involve humans. But overall rats were the examples for human beings in understanding themselves.   

After Pathak dealt with nuts and bolts of Psychology, many beliefs were shattered. Psychology turned out to be most valuable subject which  should have been taught far earlier for far more benefit.

Making fun of the black sheep in the herd would be the usual approach of Pathak to command unconditional submission of the box. People, in fact, relish full belly laugh at other's expenses. Black sheep were in regular supply to him. 

A back-bencher eyeing outside for a glimpse of full moon or girls coming late on a valentine day or black sheep lending ears to their neighbours or some planting hard eyes at girls and their bra straps seen on a sweating summer afternoon made Pathak to split the box in riotous laughter. The man knew the mind of the herd, and, hence, was there as the herd master.

"A mere thought of him brings out image of his cheerful and mischievous face," an assistant income tax commissioner (a bright sheep in the herd with M. Phil in Economics) reminisced. He was a victim when Pathak called him an educated economist bitten by monkey, after he had asked something, which was considered funny. 

A humorous cynical easily enjoys attention of many. "Indians can never be a world champion like Australians," he would say, to drive home the point that lack of mental toughness plagues Indians. (Dhoni's men, however, have shown that Indians too have mental toughness to become world champion.) This was also psychological, because of emotional deficiency, which was blamed on for faulty upbringing, he would say. 

A shocker would come, with Pathak quoting Sigmund Freud's studies, that Indians are basically impotent (probably emotionally). This would naturally hurt manly herd in the box. Knowing well the mind of the herd, he would further quote Freud, that "women are incomplete entity as they lack penis". This breeds identity crisis in women, he would say. The explanation for this being that the baby girls envy love of mother, which she finds going to father and, hence, she thinks that if she had had a penis she too would have got the matching love and attention of her mother. It would further be informed, that Freud has answer to girls taking their mothers as their role model.

The herd would counter attack Pathak, as if it was he who had come up with such findings. Pathak would, however, calm the nerves by informing that Anna Freud, daughter of S Freud, had refuted his claims. She had reasoned that case studies of sick people can not be generalised.

After Aamir Khan informed Indians on Satyamev Jayate show that we are killing baby girls even before they are born, Freud should be taken more seriously by doubting souls. Pathak would deal with Psychoanalysis part of the subject in most hurried manner, for personal shyness or to avoid wasting time in discussing penis, vagina and anus.    

For some days sheep in the box made efforts not to put ball-pen in their mouths, after it was explained that the behaviour was actually an obsession because of oral fixation (inadequate breast feeding).

List of psychological disorders was very exhaustive. Their awareness was also damaging. It turned out that most of the herd were having some of the symptoms of the disorders; obsessive compulsive disorder or neurosis or paranoia or panic disorder or even schizophrenia. After Pathak explained that most of the disorders had their roots in faulty upbringing, parents would naturally be in the firing line at the outside cigarette corner shops. An engineer would be heard telling another sheep, that his parents were indulging in pleasure when he was conceived. 

Pleasure could also be painful. Pathak would say so by disclosing that sexual intercourse is an act of pleasure but painful. The herd would not contest the claims, as most of them had walked into the box "virgin", to prove that they were horses with blinkers on to win the race for red-beacon installed ambassador car.  

Indians are laid-back, because their locus of control is outside (God or any extraneous factor). So, if we lost something we would say it was not due to our fault. So, we are not the people who would like to take initiative or would like to be held responsible, he would explain.  

The box was also a place where cupid struck dry soul. One did so, after sitting behind a girl every day to keep his eyes fixed on her to set his soul sailing into the body of his neighbour. 

Love which begins with lust hardly has longevity. Once love dies at the altars of worldly parents, victims have to find explanations to continue their journey beyond. There was one in the herd, who used Pathak's lessons to find such an explanation. 

"One does not love a person who is emotionally deficient and not independent enough. I resolved my crisis by telling myself, that I have to come out of dependence on others," said the cupid stricken sheep in the herd. 

Aspiring to become an IAS and searching a soul mate make for a deadly cocktail, which, sadly, take both aims astray.

Sad part was, Pathak would say, India being a nation of a billion people there were hardly one psychologist for a lakh population, while a healthy nation should have one for every thousand. He would inform that a career in Psychology is most lucrative in the US. 

Insanity is on the rise alarmingly in India too, which is true for the nation following in the footsteps of the US. In immediate future Barrack Obama should propose to his good friend Dr Manmohan Singh an FDI flow for psychiatrists as well.    

Pathak would not mind confessing to some, that people, including girls, had been sharing personal problems with him, that he felt like hanging himself upside down from a ceiling fan!

A number of sheep in the box are now serving the great Indian bureaucracy. 

(AUTHOR'S NOTE: This piece was written in 2007, six year after  being part of the box. A number of readers e-mail to know about Mukul Pathak and his notes, about which the author has nothing to share. It was not written to advertise Mukul Pathak. It should be taken only as a creative piece of writing only. Those who are interested in study of Psychology may refer to books of Morgan King and Baron on the subject, while NCERT books are also valuable )