The ‘Top 5 Worst Banks’ to Bank With In India
When a customer visits banks and evaluates different options, as a customer, one wants a bank that has transparent charges, responsive customer support, friendly staff, user-friendly online and mobile banking platforms, easy access to services, and tailored solutions for business needs. Considering these factors, one can make an informed decision and choose a bank that is best suited for us. However, certain banks have made it (reputation) as the worst banks to bank with; read on to know the worst banks on our list, considering important parameters.
The ‘Top 5 Worst Banks’ to Bank With In India
When one walks into a bank or considers choosing one, there are certain things one expects and looks for as a customer. Some of the essential factors that come into consideration are the following –
Charges and Penalties, Nobody likes surprises, especially when it comes to banking fees. As a customer, you want a bank that is transparent about its charges. As a customer, one appreciates it when banks clearly explain transaction fees, account maintenance charges, and penalties for things like overdrafts or late payments. Finding a bank that is fair and upfront about its costs is crucial, without any hidden surprises.
Customer Support, Having reliable customer support is essential; a bank that is responsive and helpful whenever questions or concerns arise, it is comforting and beneficial to know that one can easily reach out to them via phone, email, live chat, or by visiting a branch. Timely assistance and knowledgeable customer support representatives can make a significant difference in the banking experience and building trust in the bank chosen.
Customer-Friendly Staff and Bank Operations, When one steps into a bank, one expects a warm and welcoming environment; after all, they have your money, investments and perhaps even a secured loan from the bank; thus, friendly and helpful staff members can make your experience more pleasant.
It’s great when the staff is willing to guide you through different processes, patiently explain financial concepts, and offer personalized advice. Additionally, efficient bank operations, such as quick transaction processing and streamlined account opening procedures, contribute to a smoother and more enjoyable banking experience.
Ease of Using Website and Mobile App, In today’s digital age, an intuitive and user-friendly website and mobile app are essential; thus, one wants a bank that has invested in technology and provides a seamless online banking experience.
A well-designed website and mobile app allow one to easily access accounts, perform transactions, and access various banking services. Features like easy navigation, secure login procedures, bill payment options, and transaction history tracking make managing your finances more convenient.
Ease of Availing Services, When a loan is needed or one wants to access other banking services, one expects the process to be straightforward. A customer-friendly bank simplifies the application process, provides quick approvals, and maintains transparency regarding eligibility criteria and document requirements. The easier it is to avail of services, the more satisfied the customer is.
Ease of Doing Business, if one is a business customer, then there is a need for additional requirements, therefore, one looks for a bank that understands your unique needs and offers tailored solutions. This may include streamlined business account setups, merchant services for payments, and dedicated relationship managers who can provide valuable guidance. Flexible credit facilities, efficient cash management services, and support for your business goals are all important factors when choosing a bank for your business.
Now that we have established some important parameters, it is time for us to come to the ‘Worst’ banks to bank with; here is our list –
1) Kotak Mahindra Bank The Worst Bank – 1
Kotak Mahindra Bank has topped the list of the ‘Worst’ bank to bank with; the little said about this bank, the more one wants to say about it, as per what is found on the internet – customers who are the king – customers of this bank are banging their heads on the walls (literally) and shouting from the rooftops either complaining about their customer support, charges, poor grievance handling and probably hoping that other’s (customers) simply bypass the bank and not even think about having to do anything with Kotak.
Kotak Mahindra Bank Ltd is a private sector bank founded in India in 1985. The bank provides its customers with various financial products and services, including savings accounts, current accounts, fixed deposits, loans, and credit cards. However, Kotak Mahindra Bank faces consumer complaints like any other bank; the only difference – is PLENTY!
1) Charges – One of the customers’ most common complaints is the high charges levied by the bank. Customers have complained about the high fees for various services like ATM usage, account maintenance, and chequebook issuance. These charges can add up and affect the customer’s overall banking experience.
Recently, Customers of Kotak Mahindra Bank have received a letter informing them of an increase in annual debit card fees that will be effective from May 22, 2023.
In fact, in 2022, The Federation of Indian Micro and Small & Medium Enterprises, an association of small businesses, had issued an advisory to members cautioning them on dealing with Kotak Mahindra Bank. The federation stated that its members had received several complaints regarding the bank’s practices, especially when closing their accounts.
Therefore, it is not only difficult to bank with the bank but equally tricky, if not more, to let go of the bank – they make the process that difficult!
Another example of hidden charges can be gauged from a complaint made by a customer regarding, Lien amount charges refund; according to the customer, he never got any communication from the bank stating that he would be charged for every failed ECS transaction; he found out the same when he accidentally checked his account summary and found out that a lot of hidden charges were being deducted, customer support provided, well no support!
2) Digital Services – Customers have also reported issues with the bank’s digital services. Some customers have faced technical glitches while using the bank’s mobile banking app or Internet banking portal, thus leading to countless customers being left frustrated and inconvenienced who rely on digital banking services.
3) Harassment – This is a complaint that has been posted by a harassed customer whose wife’s number (who does not even have an account with the bank) has been getting numerous calls regarding loan credit card payments, with no reference being provided for ‘contacting the designated person’ however, still receiving abusive and threatening calls, sounds familiar!
4) Multiple deductions of money from my account; here is another example of an irate customer; he took a payday loan of amount 9613/- from the bank, and they deducted the amount; however, the same amount was auto-debited the same month again and then again to show a negative balance, contacting the bank made no difference, and the complaint landed on the consumer complaint portal.
There are multiple such complaints on the consumer complaint portal, so many that losing count or keeping a count made no difference at all since it was and is amply clear that Kotak Mahindra Bank takes the cake of being the ‘WORST’ bank to bank with thus topping our list at number 1 position.
2) ICICI Bank – The second on our list of ‘Worst’ banks to bank with goes to ICICI Bank, and we will provide ample reasons for the bank to feature in the second position.
ICICI Bank Ltd is a private sector bank in India that was established in 1994. The bank has a wide network of branches and ATMs across the country and provides various financial products and services to its customers.
1) High Charges, One of the most common customer complaints is the high charges levied by the bank. Customers often complain about the high fees for various services like ATM usage, account maintenance, and chequebook issuance. These charges can add up and affect the customer’s overall banking experience.
2) Slow Processing Time, Customers have also complained about the slow transaction processing time. Customers have reported delays in fund transfers, account opening, and loan approvals. This can obviously be frustrating for customers, especially for those who may need urgent financial assistance.
Now let us ponder on some of the most common complaints that customers have regarding ICICI Bank, and the one that tops the list is that of –
3) Demat Account Deductions, the consumer complaint portal is full of complaints regarding Rs. 826/- being deducted from their respective accounts without having been told about the same; still, more to this story is the fact that many have pointed out that they do not hold a demat account with the bank at all, or have given permission to open one in the first place, how bizarre is that!
4) Investments Tracking, Redemption Problem, Now we all know that banks literally hound customers through their ‘dedicated’ relationship managers to make investments (it’s all about achieving targets), but the problem comes in when one needs information about these investments made, tracking and even redemption. According to the complaints on the consumer complaints portal, the relationship managers apparently disappear when it comes to sourcing information, tracking or even redemption (it affects the AUM) of the relationship manager or the branch.
5) ICICI Bajaj Scooter Bonds, there is something mysterious about these bonds; the consumer complaint portal is full of concerns from ICICI account holders asking for information on these bonds!
6) Hidden/ Mysterious Charges Deductions, again the complaints regarding amounts like Rs. 345/-. Rs. 556/-, Rs 650/- and plenty more that have been deducted form many accounts of many customers that they have no idea about.
Thus, ICICI Bank takes the second lead in the list of ‘Worst’ banks to bank with.
3) Punjab National Bank, the third bank to be given the prestigious award of being the ‘Worst’ bank to bank with goes to Punjab National Bank and for the following reasons –
Service breakdowns and inefficiency are pretty frequent in Punjab National Bank (PNB), according to the customers, and very often, the account holders experience negligence from the bank employees too.
The common once are as follows –
- Payment/transaction failure
- Credit/Debit card issues
- Misbehavior of bank staff
- Bank locker concerns
- Illegal money deduction
- Service delay
1) Wrong Transaction, the one complaint that is common across the board for this bank is that the amounts have been transferred to the wrong account holders; what can be said about this, even worse, is that the wrongful money deposit transaction is in many of these cases not reversed at all!
2)Amounts not refunded; another set of complaints in the consumer complaint portal is regarding the amounts that need to be refunded – Amazon, Myntra, Flipkart etc.
3) Internet Banking Trouble/ User ID Disabled, the consumer complaint portal is full of complaints regarding the non-working of Internet banking, something that in today’s day and age (technology) should be a given.
4)State Bank Of India, is the fourth on the list of ‘Worst’ banks.
State Bank of India (SBI) is the largest public sector banking and financial services statutory body in India. It is one of the largest Indian Multinational companies headquartered in Mumbai and is operating in various countries. Some subsidiaries of SBI are SBI General Insurance, SBI Life Insurance, SBI Mutual Funds, SBI Card, etc. The bank is regulated by the State Bank of India Act Regulation, 1955 and the Banking Regulation Act, 1949.
1) Delayed Transactions, One of the most common complaints from SBI customers is delayed transactions, such as delayed fund transfers or delayed clearance of cheques.
2) Account-Related Issues, Another common complaint is regarding account-related issues, such as incorrect balances or transactions.
3) SBI Credit Cards, there seems to be an epidemic regarding SBI credit cards; the consumer complaint portal is full of customers of the bank that have been ‘given’ credit cards under coercion on the grounds that the credit card is free only to find out later that it has a fee.
Another set of complaints doing the rounds is the ‘frightening’ recovery agents employed by the bank that land up at odd hours, create a ruckus, threaten and intimidate etc., irrespective of who might be there – old, children, wife home alone etc., better not to opt for SBI credit cards at all!
Therefore the fourth ‘Worst’ bank position goes to the State Bank Of India.
5) HDFC Bank, the fifth on our list of the ‘Worst’ bank to bank with, goes to HDFC Bank and for the following reasons –
HDFC Bank Ltd. is one of India’s leading private sector banks, headquartered in Mumbai. With a pan-India presence, it offers a wide range of financial products and services to customers, including retail banking, wholesale banking, and treasury operations.
1) Hidden Charges – One of the most common complaints that customers have with HDFC Bank is the hidden charges that are not disclosed at the time of account opening.
2)Unauthorized Transactions – Some customers have reported unauthorized transactions on their accounts.
3)Heavy Cross-Selling – Many customers have complaints with regard to heavy cross-selling done by bank officials to the point of harassment.
4) HDFC Credit Cards – Again, plenty of complaints regarding ‘pressure’ tactics, harassment and threats by recovery agents.
HDFC Bank comes in number five ‘Worst’ bank
The Last Bit, Choosing a bank that meets our expectations and provides excellent services is crucial for a smooth and hassle-free banking experience. However, not all banks excel in delivering customer satisfaction. Our exploration of the worst banks to bank with revealed several contenders who fall short on important parameters.
Kotak Mahindra Bank, our top pick for the worst bank, has garnered a reputation for disappointing its customers with opaque charges, subpar customer support, and questionable practices.
ICICI Bank follows closely with its high fees, slow processing times, and grievances regarding demat account deductions.
Punjab National Bank and State Bank of India also make the list due to their recurring service breakdowns, inefficient operations, and customer complaints left unresolved.
Lastly, HDFC Bank, despite being a leading private sector bank, faces criticism for hidden charges, unauthorized transactions, and aggressive cross-selling practices.
As customers, it is essential to be aware of these shortcomings and make informed decisions when selecting a bank. By considering factors such as transparent charges, responsive customer support, user-friendly digital platforms, ease of accessing services, and tailored solutions for business needs, we can ensure a banking experience that aligns with our expectations.
Remember, while these banks may have shortcomings, there are many other banks that prioritize customer satisfaction and offer excellent services. It’s always worth exploring different options and finding a bank that truly values your banking experience.
