High net worth individuals are very demanding (“Banking after the sting,” July 16). As the stakes are very high, they expect abnormally high returns from their investment. And, to achieve that, managers go to any length, even if they are not experts in the domain in which they put their clients’ money.

It is a good idea to have a separate structure for such services, in which dedicated and well-trained professionals are employed. But even that cannot undermine the importance of know-your-customer rules. Because we all know that many HNIs have huge black money, which they want to put in safe avenues.

Bal Govind,

Noida

The financial system underwent a huge change after the insurance gates were opened to private players. Bank staff started concentrating on marketing rather than on operational issues. Due to heavy targets and pressure from apex members, the functioning of banks is linked to insurance and non-banking products. As a result, ordinary customers suffer.

Vedula V. Krishna,

Kakinada

Banks undertake a number of non-banking services. Many customers, who sign on dotted lines because of the face value of the banks, are exposed to market risks. Most of them belong to the middle class. Banks lure customers with promises of exaggerated returns in short-term life insurance products and make them sign on proposals which yield negative returns in three to five years.

S. Harish,

Chennai

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Banking after the stingJuly 16, 2013

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