Page 89 - A Banker Down the Rabbit Hole

is kept in strong room with a thick steel grill door kept locked during the
day. Then, the strong room is kept locked overnight with very heavy 6 inch
thick strong steel door with dual lock. One key is kept with the Head Cashier
and the second with Assistant Branch Manager. Unless these both persons
join, cash room and safe cannot be opened. Furthermore, if the cash stored
exceeds Rs. 10 lakhs, it is shifted to currency chest run by the Government
(The Reserve Bank of India). There is an insurance of the cash in transit,
cash in safe and on the counter of cash cabin against dacoity, fire or theft."
I told him that he should not worry about safety of his deposits.

He further asked if we close the branch and run away what would happen
to his money. These were very logical questions and the customer was
genuinely inquisitive according to his level of knowledge about banks. We
clarified that this bank was owned by the Government of India and so
far Government had not allowed any of their banks to close the business
or fail. Every one's amount had been 100% safe in the banks. He assured
us to come some other day to see all these arrangements.

He came the following week and we took him around the cash safe in
the strong room with RCC Roof, Walls, Floor, the Strong room doors and
cash safe, all with double locks. He seemed satisfied and promised to
come and deposit money later.

He really deposited a large amount beyond our expectations and as per
estimation of his acquaintances.

Insights from the episode
1. Any event may lead to customer making a different perception than
intended. A small lapse discussed in the open by the bank guard
became a big question mark on safety of funds of a new depositor.
2. It was a "reputation risk" for the branch, had he spread it to many
more depositors like himself. So it is very important to manage the
perception of the customers to grow business.
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86 | A Banker down the Rabbit Hole