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SBI: Complaints Arise on Unauthorised Customer Enrollment in Government Schemes
SBI faces scrutiny as customer complaints reveal unauthorised enrollment in government insurance schemes, raising concerns about unethical practices, adding to recent controversies of mis-selling and target pressure.
Author: Saurav Kumar
Published: January 29, 2024
India's largest Public Sector Bank, the State Bank of India (SBI), has released a notification addressing complaints received under the Whistleblower Policy. The grievances highlight unauthorised debits from customers' accounts for enrollment in schemes like Pradhan Mantri Suraksha Bima Yojana (PMSBY), Atal Pension Yojana (APY), and Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY).
The notification emphasises that customer policy enrollment is occurring without proper consent, seemingly aimed at inflating numbers to achieve favourable marks in the MD Ranking Matrix.
Image: SBI Notification on Complaints under Whistle Blower Policy
These actions, carried out by officials at the Regional Business Offices (RBOs), are now under serious consideration by the bank's top management.
Unethical Practices Prompt Internal Concerns
A senior managerial officer in the New Delhi circle raised alarms by writing to the Deputy General Managers, urging them to address unethical practices within their respective areas.
The letter also reiterated the past caution call by the bank management. It said, “The Controllers and other officials at the offices/ branches in the Circle to be advised to desist from such types of unethical practices. If those are being followed in their areas of operation and take deterrent actions against the officials promoting such activities, including the Regional Manager(s) and other staff members in the RBOs.”
In the recent past, Customers also took to social media platforms to voice their complaints, asserting that they were being charged yearly premiums for government insurance schemes without their consent.
Recent Controversies Plague SBI
The State Bank of India (SBI) has recently faced scrutiny for unethical practices related to the sale and mis-selling of third-party products, notably SBI life insurance.
In response, SBI instructed senior employees not to conduct business conclaves, seminars, or felicitation functions until March 31, 2024, to curb extravagant rewards linked to third-party product sales targets at SBI Life.
Instances of mis-selling have been reported from various regions, including a case in Pune where a home loan customer was coerced into purchasing SBI life insurance.
The trend of target pressure within SBI has become a growing concern within the banking fraternity, adding to the bank’s recent controversies.