'Idhuvum Kadandhu Pogum "
Even this challenging situation would ease
The strict penalisation and higher amount of penal charges was brought in by the new generation banks. However as the clients were mostly high networth and the banks were giving better service in terms of mechanisation and computerisation, no one was complaining about that.
When all banks including the old generation banks were compelled to implement full computerisation and automation and give all latest facilities, the old generation banks had to find revenue for these . So they were asked to charge for the services.
The scene changed when banks were asked to pay savings bank interest as per balance on each day closing. Earlier they weer to give SB interest only on the minimum balance available. That served as a cushion for them. As they had to pay interest for the last rupee kept, they also wanted to charge for not keeping minimum balance.
However as the clientele is more middle class in these banks, they felt it as disturbing when the banks reduced the interest rate on deposits. In relation to the interest on deposits for the same amount, the penal charges are exorbitant.Moreover instead of the simple clause of keeping a certain amount always as minimum, the complicated terminology also confuses people.
I am also a victim of arbitrary charging of banks.
(Refer this thread)
Levying penalty is the only way of ensuring that the account holders do what they're intended to.
The stronger a light shines the darker are the shadows around it.
Hence, it is totally not justified with respect to savings interest rate, another facility to saving account holder like insurance, loan, etc.