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  • Category: Miscellaneous

    Transaction charges imposed by Banks from November 2020

    It seems from from 1st November, Banks will be imposing charges on transactions. This is the news report in case you are not aware of it-

    It mentions deposits and withdrawing money, but I want some clarifications as to what exactly does this withdrawal of money mean? Does it mean cash and/or cheque transactions only? Or does it include transactions like NEFT and IMPS as well?
  • #713898
    What I understand is - Any cash (cash only)transaction (withdrawal/deposit) will be free for the first three transactions. From the fourth transaction, special fee will be applicable.

    We need to plan our withdrawals and deposits to accommodate in three transactions. Let us plan, our expenses for the month and withdraw accordingly, limiting them to three only. Thus we can reduce our visit to bank/ATMs.

    This would enourage online transactions.

    This will be a problem for small businessman who handles cash and deposits cash in banks on a daily basis. Now they will have to plan for three days to save the charges being levied.

    This would also reduce the crowd in banks and ATMs. And put the bank staff at ease.

    No life without Sun

  • #713903
    This is a bad decision by the banks. They are surviving on the savings of the depositors. Instead of encouraging savings, they are trying to discourage it. What Mr, Sun said seems to be the decision of some of the banks which are yet to be announced.
    " Be Good and Do Good "

  • #713904
    The said transaction charges are another step towards a cashless economy. The charges will be on cash transactions only and as of now only one bank i.e. Bank of Baroda has issued guidelines regarding this, and other banks will follow soon.

    Although this will pose some difficulty to the business sector which deals in cash more than an individual. The impact will be seen at a later stage, once the same is implemented by more banks.

    Online transactions are not covered under the newly implemented changes. If such a thing is done the that would be a disaster.

    Live before you leave.

  • #713913
    This new step can't be appreciated. Instead of making things easy for people they are making transactions more difficult. It's discouraging for common men.

  • #713915
    This is to discourage people frequenting to ATM for withdrawing a small sum of 500/-
    While there may not be a need for a common salaried person to visit for depositing the money, they may need to go to bank or ATM to withdraw money.

    These days, the salary is deposited directly into the employees bank account. The employee can withdraw the money required for the month's expenditure in one go or twice or thrice.

    Business people can use online facility to receive through the online facilities available viz. Debit cards, credit cards, Paytm, UPI, Googlepay etc.

    This is mainly to avoid cash handling. We should know that even road side or street cart vendor is using Paytm facility. All are going digital.

    No life without Sun

  • #713921
    To reduce the withdrawls and increase the deposits banks change the policies quite often. It is clearly noticed that we are moving towards digital India. We can see small grocery shops, sweet shops with the online payment QR codes. Very few people in the city limits use cash for daily purchases. In rural areas too, it is picking up momentum. Youth have learnt the usage of smartphones, onlinebank transactions and the short perks attained by such transactions. The message rates are increasing than the regular bank charges. It is a sign of utilising the finance in a careful way so that we reduce on charges too. The deposits too was initially done by the account holders but now some rules are simplified.
    Lead the leader

  • #713929
    It seems the banks want to get rid of dispensing money through ATM and slowly would discontinue cash transactions in future and therefore want to limit the withdraw amount to three times in a month and then would impose transaction charges for withdrawing cash in any ATM. The digital transaction are going to be the order of the future and this move would trigger even the elders who are averse to use the online digital mode of transacting business, would now opt for the same. Nevertheless our hard earned money should not go deducted in the name of transaction charges and poor depositors would be shying away from banks in future.
    K Mohan @ Moga
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #713930
    ATM has become a big responsibilities for banks as they have to keep a security person and fill the ATM as and when it gets empty of the cash. People also use ATMs mercilessly and withdraw 200 or 300 or 500 rupees every next day. It is the misuse of the facility. Earlier also banks tried to discourage this by charging some fee after 2-3 withdrawals per month but that rule was subsequently withdrawn. Then another rule was made that you will have to pay some fee if you use other ATMs and not your bank ATM but that was also a inconvenient option. The present ruling is also in line of that thought. Govt aim is to reduce the use of ATM as it is burdening the banks for maintenance and other associated expenses. Banks will be happy if all of us do online transactions and do not visit ATMs.
    Knowledge is power.

  • #713943
    Banks are trying to encourage the online transactions and to avoid the rush in the bank counters and ATM, they are always devising new means to discourage the frequent withdrawal of cash through ATM/ Banks. I think both the customers and the banks are to be attributed for such harsh initiatives. Even for the amount as little as five hundred on daily basis were being withdrawn by some of the customers through ATM. Banking officials are entrusted with additional responsibilities for filling up cash in ATM, maintenance of machine and supervision of the ATM booth apart from payment of security staffs. This needs additional costs to run the ATM. In that way, they want to offload their responsibilities.
    Now talking in terms of extra levy to paid for the fourth withdrawal, it would be additional burden for some of depositors since they may face such situations sometimes due to emergency health situations of the depositors causing them to pay a hefty amount to the super speciality hospitals.

  • #713951
    I do not know what is the issue if somebody wants to withdraw just Rs.500/-. There are families who do need to keep a curb on needless spending and will withdraw only how much is required at a time. Same with deposits. Some people are daily wage earners. Suppose they want to deposit a small amount from the little they earn so that they have some savings, surely there is nothing wrong in that. So what if they visit the bank or an ATM multiple times to do so? It is their money, after all, and they should have the freedom to deposit or withdraw at will. It is really ridiculous to every now and then have some fee imposed on relevant transactions.
    When you make a commitment, you create hope. When you keep a commitment you create trust! ~ John C. Maxwell

  • #713954
    I do not agree with your worries. It is Okay for a daily wage earner to deposit his hard earned saving money. But, what it fetches as interest is hardly anything. The bank pays very very low interest for the sum deposited in banks. It is about 2.90%. per annum. Just calculate what would be the interest earned for Rs. 1000/-? A simple Rs. 29/-
    Such earnings can be deposited by visiting the bank once or twice or thrice. And a person can withdraw the money required for the month by visiting ATM once or twice or thrice.

    Anyway, I like the way of limiting the cash transaction and penalising the excess number of cash transactions. Advantages are more than the disadvantages. A well thought action by the banks.

    No life without Sun

  • #713958
    After seeing this thread I had a word with my HDFC bank Manager who is known to me well. He says there are no charges in HDFC bank up to a transaction of 2,00.000/- either cash depositing or cash withdrawal. Cheques given as A/C payees will not be treated as cash transactions. If it exceeds two lakhs rupees then there will be some charges.
    I think the rules mentioned in the thread may be only to Nationalised banks but not to private banks. I asked the same issue to the Manager. He said he don't know about that. Then I referred the link given in the thread. The link says the charges will be only after crossing the prescribes limits. " Bank of Baroda (BOB) will start charging its customers for transactions beyond the prescribed limits from today"
    The other banks have not taken a decision on this matter.

    always confident

  • #713968
    Further, such a limitation for withdrawing cash would increase the life of ATM machines. And the cash count machines used in banks would also have its longevity. The staff in bank also would work at ease by not seeing a crowd or long queues to withdraw or deposit cash.
    No life without Sun

  • #713995
    The report mentions of cash transactions only and it seems banks are imposing charges for everything nowadays. India is still a poor country and a developing nation because a large section of the population is still poor. Before the lockdown, in a few banks, the number of free withdrawals in a month was limited. Because of the situation, that limitation was withdrawn and now they are going to charge even for deposits beyond a specific limit. While the thrust is on digital transactions and less-cash economy the banks and the government must look into the economic conditions of the people and the spread of digital methods for carrying out transactions. Along with this, robust security measures to reduce fraudulent transactions must be in place. Without all these efforts imposing new charges on customers will not serve the purpose. A strong economy doesn't mean only the ease of transactions or new methods of transaction but where the money is circulated to all the people with a guarantee of income to all. If that cannot be ensured, all these charges will ultimately be a burden on people who cannot afford.

    "Life is easier when you enjoy what you do"

  • #713996
    You yourself call India a country with poor population. Most citizens are poor and not holding any bank account to visit more than thrice in a month for deposit/withdrawal. It is only the rich and extra rich who have vast money to transact. Such rich people would pay the penalty for excess number of cash transaction. So, the poor Indians won't be affected by the latest orders, I am sure. The middle-class salaried people should plan it well to limit their cash transaction to three per month.

    No life without Sun

  • #714001

    You are not understanding the effect it will have on those who require expenses regularly. You are assuming the poor won't be affected. People like you and I can withdraw a sum for monthly expenses or deposit at one time. Think of somebody who puts away money regularly. Think of somebody who earns money through his hand cart, for example, transporting goods for shopkeepers. He may be getting earnings irregularly, not necessarily even on a daily basis. He decides to keep aside a little money in his bank account each time he has a little extra to do so after spending on food. He may be keeping aside the money for the future of a child and for his spouse. He is not going to think of the interest, just that there is some money kept away safely for future use. A few times, he may want to withdraw some to buy medicines when ill or a small gift to keep the child happy. Now if his deposits and withdrawals exceed three times in the month, why should he have to pay a charge for it?

    As for the middle class, even they are going to be affected. What with the economy affected by the pandemic, even such a fee is a burden. In fact, there may be regular expenses on medicines for those affected by Covid, not to mention essential nutritional sources like fruits which are very expensive. In the blink of an eye monthly expenses go way over the budget. Is this a time to impose such fees? Quite a thoughless move I should say.

    When you make a commitment, you create hope. When you keep a commitment you create trust! ~ John C. Maxwell

  • #714006
    I reiterate and say that poor won't be affected. I really don't think a handcart guy or any other small earning guy would put his money in bank daily or weekly and withdraw it frequently. Your thinking is a story for me. They keep it in their big bag or purse or keep it safe with their reliable trustworthy people. No bank account is maintained by them and money is not deposited or withdrawn frequently.

    If a poor deposits in bank, it would remain in bank for a long. Generally, the poor may prefer to deposit frequently , but not to withdraw frequently. They can accumulate cash and deposit once in 10 days. Everyone should have emergency fund at home to meet any hospital expenses.

    This pandemic has taught us many things to practice in life.

    No life without Sun

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