Readers tell us private banks levying Rs 150 on cash transactions is unfair
A little less than four months after the government announced its demonetisation drive, three of the country’s largest private sector banks — ICICI, HDFC and Axis — have imposed charges on consumers for transactions in cash at bank branches.
According to the new rules, only four cash withdrawals or deposits would be free per account in a branch. After that, a minimum of Rs 150 would be added on as cost.
These charges, however, are applicable only for cash transactions in the branches, and not through ATMs, a clear move to discourage cash transactions and push more and more people towards a Digital India.
The news initially created a lot of confusion as some reports suggested that the changes in charges also applied to ATM withdrawals.
Nevertheless, there seems to be no relief for the common man. While it's true the move will encourage more and more people to go for digital transactions, the question people are asking again is if it is feasible for everyone to access digital banking in India.
There are reportedly has less than 2.2 lakh ATM machines for 1.33 billion people and most of these ATMs are installed at urban locations. Do we really expect the people in semi-urban and rural areas not to get affected by the transaction charges when they have either no ATMs or very little access to them.
Also, the fact that the charges will be applicable to even zero-balance and salary accounts after four free transactions per month have raised some serious concerns and critics are questioning the RBI's role once again.
Many feel that if the RBI does not step in to stop the private banks from imposing such transaction costs, state-owned banks too might follow suit.
In that case, what will happen to the Jan Dhan accounts, especially after the government pulled out all the stops for creating zero-balance accounts to get India’s unbanked into the formal financial system?
When we asked our readers whether it's fair for the private banks to charge Rs 150 after four cash transactions, they too seemed confused and perplexed. This is what they had to say.
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| Photo: Screengrab |
DailyO readers weigh in.
Meeta Modak: I'm ready to pay Rs 150 but do we have enough working ATMs dispensing money? Most ATMs are in a shambles with no lights and security. What kind of Digital India is this?
Bijo Pai: It's a joke. Why should people shell out extra charges for withdrawing or depositing their own money? Is it a crime to access your own money?
Big Joke: Seriously, what is the prime minister doing? I would suggest he does some real work instead of fudging GDP data. 7 per cent growth is a joke. Who is he trying to fool? Our government is really funny.
Santosh Malakar: These are real achhe din. Now, we have to pay to withdraw our own money.
Jibon Boro: Why is the government not doing anything? Or these private banks need money to give loans to people like Vijay Mallya? No wonder they have government backing.
Nimmi Jimmy: First it was the government with its demonetisation and now these private banks. People are being taken for a royal ride.