Why to pay for use own money? You can use your ATMs only five times in a month for free. Recently RBI allowed banks to restrict their own customers to use ATMs. A bank incurs around Rs 50 if a customer visits a branch for any transaction. At the same time, the cost for the bank if a customer goes to the ATM, is one-fifth of what it incurs in a branch. The move is aimed at reducing cost for the bank as well as it will discourage unnecessary transactions. I dont understand how its going to be reduce bank cost.If cost was the issue for capping own bank ATM transactions, then branch visits should have been capped too. This move will inevitably lead to customers flocking to the branches for all kind of services once they exhaust their ATM quota. This will be rise to tremendous customer inconvenience. Remember, public sector banks that have 70 per cent share of the 162,543 ATM network in India. Public sector banks – which demanded such cap on free transactions— may not only end up incurring higher cost but also lose market share to their private sector counterparts if they restrict their own customers to use ATMs. The limit, that comes into effect from November 2014 in six metro cities includes both financial transactions like cash withdrawal and non-financial transactions like balance inquiry and check book request. Banks are allowed to charge maximum Rs 20 per transaction, from the sixth usage. If you oppose this decision then share it and bring this to RBI notice...
Posted on: Sat, 23 Aug 2014 06:56:05 +0000
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