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  • Category: Miscellaneous

    Why can't more banks offer free funds transfer/other services?

    There is this superb private sector bank called City Union Bank. Its net banking services are simply world class. The best part of this bank is that the net banking transfers of money to other banks is totally free, irrespective of the amount involved. One has to just add the beneficiary and do all the transfers. Even if the other bank ATM card is not available, one can jolly well use this card to withdraw cash from this bank.

    Federal Bank is another superb private sector bank. One can use this ATM card at any ATM, any number of times, subject to a maximum limit of Rs.20,000/-. One can have two accounts in the name of family members and use the cards to withdraw Rs.40,000 as well.

    Why can't other banks follow these superb examples and offer their services for free? If they do not offer such services, Members can jolly well do their own research to identify sources where the money can be easily withdrawn and also deposited. One understands that the Post offices in the main cities have a provision to open SB accounts so quickly and also give ATM facilities.

    New private sector banks like the Fincare Bank offers ATM where the cash can be withdrawn up to ten times. Since it is never safe to have big money at home, we should have many accounts and store the ATM cards in a very safe place that the thieves cannot find out. It is also wise to give the ATM cards to some dependable relatives.
  • #657272
    That is true. There are some private banks which are extending free services. These banks will have fewer overheads and the staff will be less and the load will be more on the staff. In the case of HDFC bank and other well known private banks, there are charges but they work very efficiently and they will take care of the customers well. That is why they are getting very good business and making good profits. In the case of Nationalised banks, the overheads are very high. The load on the members is less. These people never care for their customers. They give loans to many industries without taking proper care and their NPAs will be increasing. So they will be in losses. To reduce these losses and show a better performance they are charging heavily on customers.
    In fact, the banks should give more free services and encourage the customers to do online transactions that will reduce to physical money circulation and costs for the bank will reduce. But that is not happening. The customers are suffering.

    always confident

  • #657300
    I think more banks should give this type of facilities then only customer will remain with them otherwise customers can also think of opening account in more user friendly and more facility giving banks.
    Thoughts exchanged is knowledge gained.

  • #657303
    It's good to listen or to know about such services in our country. The ways in which we have been to the banking services during last few of the years has really improved a lot & the credit can well be referred to the increased competition which has led to the increased & more customized services available to us.

  • #657312
    Different banks have different policies and rules but they have to work under the overall policy guidelines as issued by RBI time to time.

    The fees and other charges levied by banks for its facilities and services vary from bank to bank depending upon their revenue generation studies. A bank which has a smaller customer base will get its revenue from different services than a bank which has a large base. Due to this they will give relaxation in some of them selectively and consumer will feel happy about it.

    For example banks are now charging quarterly charges for SMS services and they generally charge about Rs 20 per quarter. Now if a bank sees that the number of senior citizen is relatively less there it can waive off this charge for them. It may make the revenue slightly less but seniors will be attracted to these banks.

    So banks have to earn their revenue from the customer only and they will selectively give relaxation and discounts in some of them.

    Knowledge is power.

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