Sunday, January 12, 2014

ATM Transactions

RBI while deciding the number of free transactions through ATMs, should also factor in the free float funds enjoyed by banks free of cost, the amounts written offs per annum because of bad loans, the establishment costs incurred which are non essential and avoidable, etc. The very thought of charging the ATM users is atrocious and cannot be permitted as the depositors are already an exploited lot taking into consideration the low SB interest rate, low FD rates and cross subsidisation of bad borrowers by all stake holders etc. It is better for banks to avoid the wrath of deposit Customers especially when the savings of households in banks are shrinking.

Dr.T.V.Gopalakrishnan
(This comment is published in Business Line).

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