Monday, January 6, 2014

Banks and ATM charges

There is absolutely no justification for banks to approach RBI to hike the ATM charges. The banks enjoy a lot of free float funds, low cost /free funds from SB and Current account holders and they also save a lot in the cost of funds by having ATMs. The technology was encouraged basically to improve the customer service at lower costs, to reduce the cost of funds and enhance efficiency and productivity in banks. The banks have a tendency to exploit the depositors by all means as they are hapless lots and not capable of giving any resistance. The borrowers are allowed to loot merrily and the loss is also passed on to depositors. RBI has to have a serious view of banks inefficient way of functioning before it takes a view in respect of ATM Charges.
 
 
Dr.T.V.Gopalakrishnan 

(This comment has appeared in TOI, Business Line, ET and BS dated 7/1/14).

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