Money & Banking
Cashless cost unchanged while cost of cash transactions gone up: Survey
The slogan of ‘Going Cashless’ has been in front of our eyes continuously for the last five months. However, per citizens, the cost of cashless transaction continues to be the same as pre-demonetisation at 1-2% for debit card and 2-4% for credit card transactions. These charges, charged by banks, payment processors to merchants lead to merchants demanding cash from consumers. Citizens currently feel squeezed because while the cost of cashless has not reduced and the cost of cash transactions and availability of cash has reduced, says a survey conducted by citizen engagement platform LocalCircles.
 
 
A few months ago, various banks have introduced cash transaction charges where charges of as high as Rs150 per transaction have been imposed on more than four cash transactions (withdrawl or deposit) in a month. Also, charges for ATM usage after a certain number of withdrawals have been reintroduced leading to disincentivising cash transactions. 
 
In a poll conducted by LocalCircles, 56% citizens said that they do not support the charges imposed by banks on cash withdrawal or deposits and wanted the charges to be rolled back immidiately. Surprisingly, 14% citizens said that they will support the charges but only once the cost of cashless transactions reduce. More than 11,000 people voted on this poll.
 
Acting on the consumer pulse, LocalCircles conducted a parallel poll and asked the citizens if the charges on credit card usage should be capped at 0.5% and the charges on debit card purchases should be brought down to zero. Out of the 8,900 odd citizens who voted, an over whelming 96% voted in its favour.
 
 
Acting on the consumer pulse, LocalCircles conducted a parallel poll and asked the citizens if the charges on credit card usage should be capped at 0.5% and the charges on debit card purchases should be brought down to zero. Out of the 8,900 odd citizens who voted, an over whelming 96% voted in its favour.
 
“We could conclude by saying that for India to become a successful cashless economy, the cost of cashless and digital transactions will have to be significantly brought down from the current levels. Till that happens, the cost of cash transactions must not be increased,” LocalCircles says.
 
Separately, in other Survey, the citizen engagement platform found that 43% citizens who visited an automated teller machine (ATM) between 13th and 16 April 2017 could not find cash. 
 
 
LocalCircles says, 43% citizens told it that they could not find cash in ATMs between 13th and 16 April 2017. “This number has worsened from the 36% who had faced problems in finding a cash dispensing ATM between 5th and 8 April 2017. Over 8,700 citizens from across India participated in this poll sharing ATM experiences in their areas.
 
 
LocalCircles also conducted a citizen pulse check in 11 cities across India to find out that Hyderabad was worst hit with ATM outages followed by Pune. 83% citizens in Hyderabad and 69% citizens in Pune said that they were unable to find cash dispensing ATMs between April 5 – April 8. Delhi recorded the highest availability of cash dispensing ATMs with only 11% citizens unable to find money in the ATMs during the mentioned days.
 
 
You can also sign on online petition requesting RBI Governor to Stop Banks Fleecing us Depositors! Here is the link
 

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COMMENTS

Parimal Shah

6 months ago

I think the government is crowd-funding for the bank NPAs.

Four held for cheating banks over Rs 2,240 cr
New Delhi, The CBI has arrested four directors of Delhi-based Surya Vinayak Industries Ltd for cheating a consortium of banks over Rs 2,240 crore, an agency official said on Wednesday. A court sent them to ten day CBI custody.
 
Sanjay Jain, Rajiv Jain, Rohit Chaudhary and Sanjeev Agarwal have been arrested on the complaint of the Punjab National Bank, said the Central Bureau of Investigation (CBI) official.
 
It was alleged that the accused fraudulently used more than 100 shell companies for the diversion of bank funds.
 
The official said that there was no genuine business between the firm run by the accused and the shell companies.
 
"The firm also diverted Rs 376 crore out of the working capital limit obtained by the consortium of banks to six foreign subsidiaries based at Singapore, Hong Kong, China, Indonesia, Dubai and Ghana," he said.
 
They were presented before Chief Metropolitan Magistrate Sumit Dass who allowed CBI to quiz them till April 22.
 
The CBI told the court that accused custodial interrogation is required to recover the cheated amount. It also told court that accused are required to be confronted with one another to unearth the entire conspiracy.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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COMMENTS

K V RAO

6 months ago

Also banks follow up system is defective.Banks are not capable of physical inspection of stocks and assets.Their financial follow up is also quite tardy with corporates doctoring the financials.The outcome is pile up of bad assets like this. Too management and the board that sanctions should be held accountable.Group or committee approach to credit approvals takes away accountability.

K V RAO

6 months ago

Also banks follow up system is defective.Banks are not capable of physical inspection of stocks and assets.Their financial follow up is also quite tardy with corporates doctoring the financials.The outcome is pile up of bad assets like this. Too management and the board that sanctions should be held accountable.Group or committee approach to credit approvals takes away accountability.

K V RAO

6 months ago

Banks particularly public sector ones have very poor credit appraisal system in place.Consortium member banks simply copy appraisal memo prepared by the leader without an independent due diligence study

SRINIVAS SHENOY

6 months ago

I hope the bank will be in a position to recover the entire loan amount. Hope the management and staff are not involved in this huge fraud and proper procedures and systems of the bank were observed while disbursing the amount. I hope it does not turn to be a sticky NPA account, eventually resulting in the hapless bank depositors paying increased service charges.

Government sets up committee to examine bitcoins issue
New Delhi, Against the backdrop of an RBI caution against the use of virtual currencies, including bitcoins, the Finance Ministry on Wednesday said it has constituted a committee to examine existing regulatory and legal framework on the issue.
 
The inter-disciplinary committee chaired by Special Secretary (Economic Affairs) has been asked to submit its report within three months. 
 
The committee will take stock of the present status of virtual currencies, both in India and globally.
 
"It will examine the existing global regulatory and legal structures governing the matter and suggest measures to deal with it, including issues relating to consumer protection and money laundering," a ministry statement said.
 
The committee will have representatives from Departments of Economic Affairs, Financial Services, and Revenue (CBDT), Ministries of Home Affairs and Electronics and Information Technology, Reserve Bank of India, NITI Aayog and the State Bank of India. 
 
The Reserve Bank of India had recently cautioned the users, holders and traders of virtual currencies about the potential financial, operational, legal, customer protection and security risks.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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COMMENTS

Pradeep Kumar M Sreedharan

6 months ago

Blockchain is our ultimate saviour.

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