In 2009, Mohan Lal Rampal handed over Rs 13 lakh to his bank to invest in a portfolio management scheme (PMS) that promises a 24 per cent return on a yearly basis. Fast forward to 2018, the now 84-year-old is yet to get back his principal amount, let alone any profits. Rampal had trusted Citibank, having had an account there for more than 20 years, to know how to handle his investments and provide him the best returns. Instead, bank statements said he suffered a loss of Rs 3.6 lakh in the first year itself while the bank charged him a commission of close to Rs 2.7 lakh for the failed investments during the same time.
Ramgopal Belur from Hyderabad has a similar story to tell. Two managers from his branch in Kotak Mahindra bank took his savings of Rs 23 lakh for an asset management scheme with the promise that the valuation of his money will touch a crore in just a few years. Years later, he has 5 lakh left in the account. Ramgopal says he is now afraid to even check his investment account balance.