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The Haughty Banks of India - Quick Facts

The Haughty Banks of India - Quick Facts for IBPS PO, IBPS CLERK, INSURANCE EXAMS, RRB EXAM, SBI PO, SBI CLERK


Essential for All Upcoming Bank Exams
The late Savak Tarpore take into consideration by many as one of the greatest central bankers of India once put on an old torn shirt and walked into a bank branch in South Mumbai to check for himself the quality of service offered across bank counters. After many years, he describe the experience to one of the writers— he was virtually pushed out, threatened with physical assault and
warned never to enter the branch again. The experience led Tarapore, who was the Deputy Governor of the Reserve Bank of India in the 1990's, to argue forcefully that banks in India suffer from an attitudinal problem of hostility towards the common man.

It is this very attitudinal problem that is on display in the move by several banks to charge fees and penalties for transactions that exceed a specified number. Various depositor associations are meeting to find out how they can oppose what essentially (and admittedly) are penalties—the precise term used by the State Bank of India (SBI)—on depositors depositing or withdrawing their own money at a place and time of their choosing.

The charges will be levied on transactions beyond four or five free withdrawals/deposit transactions every month, and many banks seemed to have simultaneously warmed up to the idea and want to implement it beginning 1st April. Present situation is a picture of banks standing together in rivalry with ordinary citizens an image that hardly does credit either to the banking system, especially the government or the large PSU banks, so soon after all the hardships caused by demonetization.

It is a lot like that the tax will be even withdrawn, at least by the public sector banks, with reports that the government has asked the leader of the pack, the SBI, to reconsider the move. But the proposition themselves the way they have been submitted and the justification offered for these fees by the bank CEOs give some interesting insights into the alternate universe in which the sector leaders appear to live and operate. The words, the terminology, the explanations and the language in general reflect the inner contempt with which ordinary depositors are held by the banking world.

One of the causes for impose charges to self-reliant customers from interfacing with banks and their teller machines is the simple one that banks are not charities and that they must ask for a return for their shareholders and regain their costs forgetting the elementary fact that the money being so described here is not the banks money at all.

The very presence of the bank depends on the trust of depositors who are the reason why the bank is business. It is relevant to bring to the attention of our bank leaders the simple statement made by the late M R Pai of the All India Bank Depositors Association. Depositors who are the actual owners of the banks, as without depositors there would be no banks. In India family sector deposits made by individuals, traders, professionals, businessmen, trusts, self-help groups account for more than 60% of the total deposits with banks.

In sum, the bulk of the money of the people of India provides the fuel for the banking industry to exist and run. Among them many would have deposit balances beyond the Rs. 25,000 required to escape (in the case of SBI) withdrawal penalties from SBI ATMs. But an even larger number of accounts will be of those who maintain less than this balance.

Source: NewIndianExpress
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