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My read is that they did understand the risks and had thought things through, but they they underestimated the degree to which average people (not just poor) an

My read is that they did understand the risks and had thought things through, but they they underestimated the degree to which average people (not just poor) and businesses shunned the formal banking/finance system. One story told on NPR was of a couple getting married that had been saving money - in cash - for a few years, and had to get it all converted to the new currency before the wedding. All the vendors expected to be paid in cash (I assume because they are all corrupt) and they probably also needed to pay off some corrupt officials. Anyway, they distributed bagloads of cash to enough trusted family members that they were able to convert enough to go through with the wedding and pay all the vendors. My understanding is that some honest Indians support Modi. I also understand that being honest in India is a fool's errand.

JumpCrisscross 10y ago
> they underestimated the degree to which average people (not just poor) and businesses shunned the formal banking/finance system My aunt bought a CD for me from ICICI, an Indian bank, when I was young. Only I can withdraw the funds, and then only into an Indian bank account. I started the process with another Indian Bank, YES Bank, in February of 2016. I got an account a month later, but online access did not work with a U.S. phone number. Emails routinely took 2 to 3 weeks to be followed up on, phone calls produced conflicting advice and two managers copied me as they went back and forth with other managers berating each other and their respective employees. In December of 2016, I was able to log into the account. Unfortunately, I'd been tolled fees from February despite receiving assurances from a manager, in writing, that this would not happen. It is now January and nothing has happened. Note that ICICI only started responding once I wrote a letter to New York State's Department of Financial Services, something that is possible only because ICICI have a legal presence in New York (and I am a New Yorker). The amounts involved are small. I pursue it because it's right and I don't want to disrespect my aunt's generosity. That said, I would never, ever encourage anyone to deposit substantial amounts of funds for any amount of time, nor any amount of funds for a substantial amount of time, with an Indian bank.
- what_ever 10y ago
  My experience with Indian banks has been great albeit some unnecessary fees once in a while. I opened the non resident account in SBI when I visited last time and was able to get the account number, passbook and checkbook on the next day. They shipped the debit card and the pin to my home address. The online banking details were not handed to my parents so I visited again when I went earlier last month and was able to get the online bank details right there. The account activated later that evening and I was able to transfer money the next day. When I stayed there, I had similar experience wrt opening of accounts as Indian residents with Axis, Kotak and even ICICI. So this treatment is not new or limited to just NRI accounts.
the_watcher 10y ago
But if they truly understood the risk, shouldn't they have had a handle on how many citizens (and more importantly, how much of the economy) depended on this?

JumpCrisscross 10y ago

> they underestimated the degree to which average people (not just poor) and businesses shunned the formal banking/finance system My aunt bought a CD for me from ICICI, an Indian bank, when I was young. Only I can withdraw the funds, and then only into an Indian bank account. I started the process with another Indian Bank, YES Bank, in February of 2016. I got an account a month later, but online access did not work with a U.S. phone number. Emails routinely took 2 to 3 weeks to be followed up on, phone calls produced conflicting advice and two managers copied me as they went back and forth with other managers berating each other and their respective employees. In December of 2016, I was able to log into the account. Unfortunately, I'd been tolled fees from February despite receiving assurances from a manager, in writing, that this would not happen. It is now January and nothing has happened. Note that ICICI only started responding once I wrote a letter to New York State's Department of Financial Services, something that is possible only because ICICI have a legal presence in New York (and I am a New Yorker). The amounts involved are small. I pursue it because it's right and I don't want to disrespect my aunt's generosity. That said, I would never, ever encourage anyone to deposit substantial amounts of funds for any amount of time, nor any amount of funds for a substantial amount of time, with an Indian bank.

what_ever 10y ago
My experience with Indian banks has been great albeit some unnecessary fees once in a while. I opened the non resident account in SBI when I visited last time and was able to get the account number, passbook and checkbook on the next day. They shipped the debit card and the pin to my home address. The online banking details were not handed to my parents so I visited again when I went earlier last month and was able to get the online bank details right there. The account activated later that evening and I was able to transfer money the next day. When I stayed there, I had similar experience wrt opening of accounts as Indian residents with Axis, Kotak and even ICICI. So this treatment is not new or limited to just NRI accounts.

the_watcher 10y ago

But if they truly understood the risk, shouldn't they have had a handle on how many citizens (and more importantly, how much of the economy) depended on this?