Banking
Credit Cards, Credit Ratings & Phoney Customer Care of Banks
Many of us won’t forget a presentation by Ravi Subramaniam, ex-banker and author of several thrillers set in banking. His book, If God Was a Banker, opened our eyes to the millions that Citibank probably earned on ‘Citibank Suraksha’, an insurance that was quietly loaded on to consumers, without their consent, in the 1990s. (The book, of course, has a fictionalised account—so any similarities that I have found with Citibank are purely coincidental.) Although there was a media furore, the bank in the book only reversed charges if a customer called to complain. Apparently an overwhelming majority didn’t. The bad press didn't matter as long as the bottom-line was fattened and it was, in a big way. 
 
Two decades later, HDFC Bank faces a similar controversy over its Rs110 ‘account management’ fee charged to customers without their consent. A furore ensued and has led to some change. But not enough – it remains an ‘opt-out’ service. HDFC’s head honcho, Aditya Puri, who was coincidentally with Citibank during the 1990s, will be laughing in his Bank and probably snag another trophy or two as the ‘best banker’
 
In HDFC Bank’s case, at least the shareholders probably approve of what the bank is doing. But what about State Bank of India (SBI), owned by the government of India? Its chairperson is busy recovering both the cost of Jan Dhan accounts (as she has admitted) and the Bank’s bad loans from its hapless depositors, by levying hefty charges on a range of poor services.
 
Earlier this month, SBI launched its ‘Unnati’ card, which will drag its customers into the heaven of “digital transformation through cashless transactions.” Meanwhile, chairperson Arundhati Bhattacharya has announced that the Unnati card will be issued to anyone who has a cash balance of Rs25,000 in his account (including Jan Dhan account-holders) without going into their credit history. Ms Bhattacharya portrays this as a selfless national service. It will cater to the credit card requirements of new users, especially those without any prior credit history, she said, adding, “we must credit empower our citizen and this is an initiative towards that.” We have a different interpretation. SBI is luring unsuspecting users. For this, it is offering ‘zero annual fees’ for four years. 
 
This brings us back to Ravi Subramanian’s talk. One big insight from him was how every action of card-issuing companies that appears to benefit a card-holder is actually geared to improve its own revenues. It is meant to encourage you to spend money that you don't have and cannot repay at the end of the month—so you roll it over at a usurious interest rate. When an issuer upgrades your card—silver to gold, or gold to platinum—it is rarely because you are a good borrower (who diligently clears all dues at the end of the credit period), but because the bank earns a higher commission. In fact, credit card issuers love customers who roll their credit and pay the minimum dues. Those who pay up on time are a cost and a burden. So let’s examine SBI’s generous Unnati offer more closely.
  • SBI’s ‘zero’ annual fee is an eyewash. What the card-holder needs to know is what interest SBI will charge and whether there are other hidden charges and costs. At the moment, SBI has among the highest charges for a slew of banking services, including minimum balance, cheque leaves, drafts, etc. In fact, its charges are often higher than those of private banks, without even the excuse of offering better service and ambience. 
  • Secondly, SBI is already hiking costs, even before the Unnati card hits the market. On 4th April, political analyst and doctor, Dr Sumanth Raman, tweeted, “SBI Cardholder, w.e.f. 1st April 17, Rs100 will be charged for payments made thru cheque of up to Rs2,000.” This is a charge waiting to hit the Unnati card-holder whose minimum payments may be below Rs2,000. Of course, SBI’s excuse is that it wants them to be part of national digital transformation, or be punished. 
  • Thirdly, SBI’s big push to increase the issue of cards and collections will raise funds to buy out General Electric, its long-time partner in the credit card business. By giving credit cards to every depositor who has 25,000 in her bank account, SBI expects a 300% growth in the card business in one year. If plenty of these customers, with no previous knowledge of the high interest credit card business, fall for the high-decibel, heart-tugging marketing (remember MasterCard’s ‘Priceless’ campaign?), it will mean big bucks for SBI. 
  • Fourthly, SBI simply cannot offer credit cards to all those who have Rs25,000 in their account. The Reserve Bank of India (RBI) rules clearly require it to “ensure prudence while issuing credit cards and independently assess the credit risk while issuing cards to persons, especially to students and others with no independent financial means.” So, hopefully, its claims are more gimmicky than real. 
 
Credit History for Whose Benefit?
The SBI chairperson told a newspaper, “Presently, lack of credit history has been a challenge in increasing the card penetration in the country. In such a scenario, this card is likely to facilitate in generation of credit history for new users, which will help bringing them into organised financial stream.” This is an extraordinary assertion. India is not Europe or the USA, where it is hard for people without a credit history to get a credit card. Nowhere does the RBI’s master circular mandate a credit history requirement for issuing new credit cards. On the contrary, the entire Jan Dhan drive was triggered by the fact that India has a huge unbanked population with no access to formal funding, and hence no credit history.
 
Indeed, our credit bureaus are only helping lenders. It is almost impossible for a credit defaulter in India to get a loan, barring rare exceptions by finance companies. Many defaults date back to 2005 or earlier when people were clueless about the consequences of being listed as a defaulter. Even today, most people become aware about credit scores only when they are refused a loan. No lender offers better terms, or lower interest, to good borrowers with a high credit score as a matter of right. Even when it comes to resetting interest downwards on their home loans, lenders will do their best to extort a charge unless the borrower is savvy enough to haggle and threatens to switch to another lender. Here, too, most borrowers are unaware that the bank knows that a high credit score will get them a good deal with a new lender. 
 
RBI, and the cartel of banks, are completely uninterested in educating consumers about these rights or the importance of credit scores. I wrote to three of the four credit bureaus this week to check if they are aware of lenders who offer a better deal to borrowers. Two replied. They were unaware of any such benefits off-hand and offered to get back. Several months ago, I wrote about how Bank of Baroda was the only bank to frame an official policy wanting to introduce lending rates based on credit scores. We have not heard of any customer getting such an advantage. 
 
All this only goes to show that SBI chairman’s benevolence has everything to do with the Bank’s bottom-line rather than any concern about its new card customers who may end up getting unnecessarily indebted. A consumer website puts it beautifully when it says, “Once you enter the world of credit cards, it becomes tantalisingly easy to buy today what you can’t afford tomorrow.” But lenders and governments have a nice way of blaming individual greed for running up debt. That is why many borrowers in developed countries end up seeking psychiatric help to deal with addiction to credit-card spending. 
 
With RBI shutting its doors to any feedback and communication and the bank cartel being given full liberty to impose charges at will, we are fast headed to the bad old days of 2004-06 when bank excesses and shady marketing pushed millions into needless debt.

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COMMENTS

Sri Chadalawada

5 months ago

SBI credit cards were given like sim cards under umbrella in NIT Warangal. My friends in IIT Bombay said same happened in their college

Rajendra Ganatra

6 months ago

I have been a preferred customer of HDFC Bank for years. Recently I received this mail from HDFC Bank saying:

"..........we charge a nominal fee of Rs.100 + taxes per quarter per Customer ID for Savings and Current Account holders. The fee is charged only after you have enjoyed a free trial period of One Year"

There was no justification for this new charge which did not exist earlier. So I have opted out of the preferred customer status with HDFC Bank.

Thank Sucheta Dalal for this article, that I took note of the "routine" mail which took for granted, my consent for the charge, unless I would opt out of the service! It's time RBI advised the banks to seek express confirmation for any charge.

B. Yerram Raju

6 months ago

The article is very timely and most needed. On the 9th instant I presented four cheques issues by a firm. Of them only one got credited in the clearing. The other three were returned. Reasons are not informed to me although my account is linked to my mobile.I asked my issuer of the cheques, the reason: he ascertained from the HDFC Bank that he image of the cheque is not clear and hence rejected. But my bank, SBI without representing and without informing held the cheques with it and charged quietly Rs. 496 for the cheques as fees for the cheques returned in clearing!! I lodged my protest and the bank agreed to represent and it took eight days to get the credit. Who will pay interest for the delayed credit of Rs.82000/- and reverse the usurious charges for the return of cheques caused by bank lapse?

Sucheta Dalal

6 months ago

If usurious bank charges worry you, please join my fight against it. Sign and share this petition with your friends. It is easy to whatsapp or put on facebook : https://www.change.org/p/governor-rbi-finance-ministry-stop-banks-fleecing-depositors/w?source_location=petition_nav

REPLY

Sucheta Dalal

In Reply to Sucheta Dalal 6 months ago

You can also copy this smaller URL : https://tinyurl.com/k45z4n5

Sunil Prakash

6 months ago

Banks services are deteriorating. Some nationalised banks have showns customer icare improvements, but then since online banking has come, most of them have stopped personal responses. The people responding from online are just nuts and do not wish to respond, they have set replys to what ever queries you raise. Pitiable condition.

Jagdish Chavan

6 months ago

Thanks for writing and following up bank's openly exploiting common man. I had ISA account with HDFC for few years. Took me time to realize I get zero value having this type of account [rather it was pain to sort out issues even between HDFC MF and HDFC Bank] and only excess charges debited from account. Closing the account was double pain, at point HDFC representative was asking me to redeem all MF units to close ISA account. Thank god, I was aware that time and didn’t follow their advice. Its 5-6 years old story. Re: CITI, I heard many stories but yet to experience serious issues.

ksrao

6 months ago

The combined motto of banks and credit card companies is really, "Use now and regret later". Bernard Shaw said, "Income one pound, expenditure nineteen shillings, result happiness. Income one pound, expenditure twentyone shillings, result misery."

Yazdi Tantra

6 months ago

Forget Farmers' suicides - Credit Card Debt induces suicides in several countries -
http://www.thenational.ae/world/south-asia/spiralling-debts-and-shame-drive-dozens-of-indians-to-suicide-in-uae
http://www.creditcards.com/credit-card-news/debt-depression-and-suicide-1264.php
https://www.sott.net/article/314184-Financial-suicide-Credit-card-debt-in-the-United-States-is-approaching-a-trillion-dollars

sundararaman gopalakrishnan

6 months ago

I fully agree with whatever is said in the article..I have an HDFC Bank Visa card since last 9 years and rarely use it.Have kept the same since i travel abroad frequently and in case i need to use it overseas in extreme emergency..Debit card is any day better..

Vivek Silla

6 months ago

Increased issuance of credit cards might be a good push on the digital economy, but comes with its own set of risks.
Credit Card is a lovely financial instrument for the customers as long as they are used judiciously and the payments are made on time. In addition to the up to 50 days interest free period, it also gives host of other benefits like rewards points, lounge access, cash back, attractive deals and discounts, travel insurance etc. based on the type of the card. Further, it can always be of assistance in case of emergency.
So like every other financial instrument, the onus is on the customers to use the credit cards judiciously to avail maximum benefits from the credit cards. As the old saying goes, cut your coat according to the cloth. The rule of thumb should be that one spends from credit card only as much as he or she can repay within the due date. One should not indulge in spending on unnecessary things using credit card, just because he or she has a good credit limit as eventually he or she has to pay it up, if not within the due date, then with fees and crazy interest rates.
I would expect the media and financial press to create awareness about responsible usage of credit cards so that customers may benefit the most out of the credit cards.
Regarding your point that SBI simply cannot offer credit cards to all those who have Rs25,000 in their account and hopefully, its claims are more gimmicky than real. As rightly stated by you, The Reserve Bank of India (RBI) rules clearly require it to “ensure prudence while issuing credit cards and independently assess the credit risk while issuing cards to persons, especially to students and others with no independent financial means.”
So it is up to SBI discretion to issue or deny credit cards to any individual based on its own credit risk assessment. So if SBI is ready to issue cards, so be it. SBI is a bank and would definitely care for its own business and might have done a risk benefit analysis prior to taking this decision. They definitely might be looking at their own benefits, whether it is to buy out GE or whatever be it.

Mandar Kulkarni

6 months ago

I've held a Citibank credit card for 5 years, have paid back every bill on time fully. Never got a call to enhance my credit limit or upgrade my card. Someone known to me fell back on payments and opted to convert his spends to EMIs, got his credit limit doubled in 6 months!!! It was only after I sat down with a pen and a paper, this person woke up and paid back full outstanding by liquidating some of his savings. Lot of us don't read the fine print and most of us aren't capable of deciphering the fine print.

Mandar Kulkarni

6 months ago

I've held a Citibank credit card for 5 years, have paid back every bill on time fully. Never got a call to enhance my credit limit or upgrade my card. Someone known to me fell back on payments and opted to convert his spends to EMIs, got his credit limit doubled in 6 months!!! It was only after I sat down with a pen and a paper, this person woke up and paid back full outstanding by liquidating some of his savings. Lot of us don't read the fine print and most of us aren't capable of deciphering the fine print.

Ramesh Poapt

6 months ago

this' addiction' is worse than alcohol,drugs...

p venkateswara

6 months ago

They say 45 days credit you will get & they say you neednot to pay full amount of monthly bill, you can pay 5% of the bill or you can opt for EMI. they creat a confusion, finally the customer will go to their hands.

Gurudutt Mundkur

6 months ago

I would tend to believe that you are a bit to harsh on the Banks. I have had a citibank creidt card for over 18 years, and have not paid a single paisa as penalty. I know what my limits are... they are not the limits set by Citi Bank, but are the limits to which i can repay when the payment becomes due. So I have know problem.... IDO NOT FALL FOR THE BEAUTY OF A LADY IF I CANNOT FINANCE HER DESIRE FOR LUXURIES. If I did not, i would have suffered and become a pauper. I know when my payment is due and also time my purchase at the beginning of the billing period, to extract the maximum of credit time. I am one of the poorest customer of the Bank. I also extract he maximum reward points to the extent that during these eighteen years, I have been to the U.S.A using the reward points and continue to stay in Hotels at almost 10% of the regular rates. Sorry, as it is sadi --- nobody can fool you if you do not want to be fooled.

REPLY

Sucheta Dalal

In Reply to Gurudutt Mundkur 6 months ago

With all due respect sir, you should not judge the financial literacy of others, who may not have your background or savvy. It is harsh and callous. For the past 7 years, we have run Moneylife Foundation and come across stupefying cases of wealth destruction, even by those who have businesses with a turnover of Rs 40 crore and above. Their trust is betrayed and finances destroyed. It is always easy to blame all those who get cheated or tempted as weak and foolish. But most of us are foolish about something or the other in life -- sometimes about our health, or physical security. It is best not to judge. We go by hard facts and numbers. Moneylife Foundation runs several helplines and free daily clinics, so allow us to say we know what we are talking about and how this will get misused.
I must also mention that taking up these issues is a thankless job, but someone needs to do it. We lose advertising and sponsorship support when we write against banks -- believe me, there is no INCENTIVE to write this. It is only the truth!

Vidya

In Reply to Sucheta Dalal 6 months ago

Hi Sucheta,

Many people appreciate the good work done by you, I am one of them. Please continue to educate customers and challenge what is not ethical and not correct.

Anand Vaidya

In Reply to Gurudutt Mundkur 6 months ago

The bank will classify you as a "bad customer" atleast as far as credit card goes. You're not the type of customer they are looking for :-(

RBI raises ARCs' capital requirement to Rs 100 cr
Mumbai, The Reserve Bank of India (RBI) has raised the capital requirement for asset reconstruction companies (ARCs) to Rs 100 crore, from the current Rs 2 crore, it has announced.
 
This move was necessitated by the higher amount of cash required to buy bad loans from the current fiscal, RBI said in note accompanying its first bi-monthly monetary policy statement of the current fiscal presented here on Thursday.
 
The enhancement in capital requirements comes after new norms notified by the RBI in September last said if security receipts (SRs) make more than 50 per cent of the value of the asset under consideration, banks have to continue to provide for these loans as if the loans continue in the books of the bank.
 
These norms were aimed at forcing banks to sell more such non-performing assets (NPAs), or bad loans, at cash.
 
"In view of the enhanced role of ARCs and greater cash-based transactions, it is proposed to stipulate a minimum NOF (Net Owned Fund) of Rs 100 crore for ARCs. The necessary instructions will be issued by end-April, 2017," the RBI said.
 
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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Are Bank charges going haywire? Has the regulator abdicated its role?
Over the past few days a storm of protest has erupted on social media over the ever-increasing charges levied by banks on depositors and borrowers. The most recent of these is the hefty cash handling charge that many banks plan to levy on customers who deposit or withdraw cash more than a specified number of times. The bankers think that this is fully justified.
 
In an interview to The Economic Times, Mr Aditya Puri, CEO and Managing Director of HDFC Bank, was quoted as saying that “customers need to pay for better service” to justify the charges levied by the bank. In a comparison that got people’s goat, he says, “You don’t go to Oberoi Hotel and ask for Mahesh Lunch Home rates”. This, in turn, triggered another storm of anger over the quality of HDFC Bank’s services to the average customer. 
 
Almost on cue, Ms Arundhati Bhattacharya, chairman of State Bank of India, went to the media to justify a proposed re-introduction of a charge for failing to maintain average monthly balances, pegged at a high Rs5,000 for urban branches and Rs2,500 for rural ones. She tried to justify it saying the bank has 11 crore Jan Dhan accounts to ‘manage’. 
 
One the one hand, the government wants everybody to have a bank account and salaries to be paid by cheque. How does it expect those in lower pay jobs, such as office assistants/peons, to maintain an average monthly balance of Rs5,000 in metropolitan cities, where costs are high? These charges are a double blow that will punish those who earn less. Depositors are beginning to chafe at the frequent levy of unexplained and unjustified bank charges, especially cash handling charges, although the government has been clear way back in 2010, when cash handling charges were first proposed, that they need to be reasonable and not out of line with the average cost of providing these services. 
 
Here are a few issues that have angered bank customers and led to a demand for bank account portability, which is important since it is no longer easy to shut down an account and move to another bank when electronic clearance service (ECS) mandates for payment of utility bills as well as credit cards, tax payments, demat accounts, mutual fund systematic investment plans (SIP) and equated monthly instalments (EMI) on loans are linked to an account. Banks know this and are taking advantage of the situation. 
 
Reset Charge on Mortgages: A huge pain point is the manner in which borrowers, especially those with floating rate mortgages, are being charged hefty sums (which differ from one bank to another) to have their interest rates revised downwards. Firstly, while every upward revision happens automatically, customers are not told about the possibility of lowering interest rates, and that too is linked to a mandatory fee. Read ‘Beware Your Bank may be ripping you off’
 
No protection on Digital Transactions: While the government is pushing consumers into digital transactions, India has not adopted global best practices to protect consumers. All over the world, a consumer gets the benefit of the doubt when a bank account or website is hacked and her money is protected, unless the consumer’s own fault is established. Not so in India. Please read: On The Digital Highway Without A Seat Belt. The RBI is still to issue a notification protecting consumers, despite the massive push towards digital transactions post demonetisation. Moneylife Foundation has sent a letter to the RBI governor urging him to issue the notification for limiting liability of customers in unauthorised electronic banking transactions and are waiting for suitable action http://foundation.moneylife.in/memorandums/
 
Opt-in/opt-out controversy:  The issue of levying a charge unless a customer chooses to opt out of a service has been a matter for anger since the 1990s, when Citibank began to charge a small fee for providing an un-asked for insurance cover (Citibank Suraksha). The bank made millions of rupees through this trick, even through a controversy raged in the media for months. Cosnumers are discovering that HDFC Bank has been using the same trick to levy a fee of Rs 100 per quarter for a 'by-invite-only' feature that most customers do not need. http://www.moneylife.in/article/hdfc-bank-charges-rs100-per-quarter-for-accessing-by-invite-only-feature/49700.html
 
Whose Side is RBI On?
The RBI’s silence is the most worrying factor regarding these anti-consumer developments. A consumer charter was issued by the Reserve Bank on 3 December 2014, which would have protected some of our rights. However, it remains a meaningless notification because the bank has made no attempt to prescribe redress, penalties or compensation for treating consumers badly. The previous RBI Governor , Dr Raghuram Rajan, despite his star status, did nothing to implement the charter for nearly 22 months of his tenure. He also made some noises about asking each bank to set up its own ombudsman, which needlessly weakens the Consumer Charter concept, but did not implement that either. Please see Moneylife’s memorandum to the RBI governor, Dr Urjit Patel, seeking the implementation of the charter: http://foundation.moneylife.in/memorandums/
 
Most banks are flush with funds on account of demonetisation, but their self-created problem of colossal bad loans has hobbled their lending operations. It appears as if banks want to protect their profits by extracting higher charges and fees from consumers. 
 
On Saturday, 18th March, several NGOs and activists will meet at Moneylife Foundation to discuss the situation and send a joint memorandum to the government and the RBI Governor. Those individuals or organisations who wish to contribute to the effort by pointing out to us specific issues, or join the discussion in person, may please write to [email protected]
 

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COMMENTS

Rajan Vaswani

7 months ago

What an irony! (Demon)-itisation was supposedly to suck out black money. Some of the black money got into Jan Dhan accounts, and now the honest bank account holders are supposedly being compelled to keep Rs.5000 minimum balance to support banks to keep those Jan Dhan accounts hosting the ill-gotten gains, which have 0 minimum balance condition.

jaideep shirali

7 months ago

Mr Aditya Puri seems to have forgotten that HDFC Bank exists because of his customers, not the other way around. HDFC Bank's level of ethics must be far lower than a roadside vendor, because they mis-sell products merrily, ULIPs was one classic case and even today, I doubt HDFC can really be called as being on the customer's side at all times. In terms of service, Mr Puri's bank may be lower than the so called Mahesh Lunch Home, but the charges are at the Oberoi level. Wake up Mr Puri, your customers may decide they do not need your bank's arrogance, there are other options for them.

Vaibhav Dhoka

7 months ago

All Indian regulators in India are semi DEAF & DUMB.They hear only things they are interested. They act only for few privileged persons,let it be RBI or SEBI or IRDA or any other regulator .The saying goes "Robbing Peter to pay Paul"suits our regulators.What punishment RBI has served on erring bankers like Axis Bank,Bank of Maharashtra to name few who helped exchange of notes thus causing hardship to common man and senior citizens.Until accountability is established on failure of regulators one day public uproar will be there and it will be difficult to hold them then.Our regulators enjoy Fat pay but no accountability.

Govinda Warrier

7 months ago

In the long term portability of accounts among same or similar types of banks may be of some advantage to customers. The banks, especially the big ones both in public sector and private sector have different approaches to Government and big account holders a "yours obediently" and "May I help you?" approach and when it comes to smaller accounts (including JanDhan, Pension, several accounts opened for crediting 'benefits' an approach of "take it or leave it... come when we're free... We're doing a favour to you, because Government wants us to do...".
If cost benefit analysis is the guiding factor, Government should compensate Banks for losses and "tax" Banks' income in other areas to fund the outgo. If regulating Interest rates and service charges is the only language Banks will understand, RBI should not hesitate to go back to the pre deregulation days.

S SRINIVASA RAJAN

7 months ago

It is deplorable that bankers are finding newer means to fleece their customers and RBI under Dr. Urjit Patel is turning a blind eye to these charges. While Government and especially PM are trying their best to move from a predominantly cash based economy to cashless economy bankers have found this a great opportunity to loot the general public. As correctly observed it is not easy to close the bank accounts since they are linked to various other activities like ECS linked SIP, utility bill payments, receipt of dividends etc. Our Members of Parliament continuously keep talking of common man and I wonder why PAC is not raising these issues with RBI and minisry.

MOHAN SIROYA

7 months ago

Protection for any digitize transaction is completelhy absent. We read many stories of how use of Debit/ATM cards are risky. In my area there are a number of ATMs whihc are just installed in shops and anyone drwaing money thru' ATM is at grave risk. There is no gaurd,no enclosure and even no CCTV camera.When this is pointed out to RBI and action demanded as per theri own rules of custoemr data safety or ATM, operations. RBI keeps silent. When asked under RTI what has been done or envisged to be done as a regulator by RBI, it discards info. saying "This does not fall under the definition of "Information". So the ATM card users will always remain vulnerable to frauds adn leakages.

SuchindranathAiyerS

7 months ago

As the saying goes, "If you have a gun, you can rob a bank, but if you own a bank, you can rob anyone".

Arundhati Bhatacharya, Urjit Patel, Arun Jaitley and the Chairmen and Boards of Indian Public Sector Banks seem to have learned banditry without going to Harvard. By dint of sheer aardvark.

Anuj Kapila

7 months ago

I made the shift to my local Post Office Bank last year. It meets all my basic needs such as debit card, Mutual Funds, FD/RD etc and staff is very courteous with no pushing of products in your face. Guess its time to revert to the good ol days of doing business over a cup of tea with the Manager.

REPLY

Arunkumar A Vijayan

In Reply to Anuj Kapila 7 months ago

It is also said that you get a postal ATM card in 15 days after opening a postal savings account. The ATM card can be used in any bank ATM or postal ATM and there is no charges for any number of transactions done by the ATM card. I too think its high time that we all shift to Postal banking.

Arunkumar A Vijayan

In Reply to Arunkumar A Vijayan 7 months ago

http://www.thehindu.com/news/cities/chennai/use-bank-debit-cards-to-withdraw-cash-from-postal-atms/article17419569.ece

https://www.indiapost.gov.in/Financial/Pages/Content/Savings-Account.aspx

please see the above two links. The minimum balance required is also very small and cheque facility can also be availed.

MOHAN SIROYA

7 months ago

Your points are all correct and applicable. I am not Anti "Modi or BJP" who have so far displayed a BAD Governance. If now I sound anti Modi, let that be but none can suppress my right to expression .
In the guise of "Acche Din" Modiji is bringing the "Bure Din" for Indians at large.
Forget the owes after NOTEBANDI. In every sphere we are suffering and the most affected class is of aged and poor citizens. The aim to effect demonetization was to punish the Black money hoarders and bring back the huge booty to economy, eliminate the Corruption from the sysytem and break the chain of Terrorism thriving on black or duplicate currency. Oppsition and intellectuals cried hourse to know from the Prime MInister or RBI to give us figures as to how much BLACK MONEY the nation has recoverd and from whom ? No answer. Just a week back a report of Transparency International compiled in Jan 2017 revealed that India tops on the corruption Index amongst Asian Nations. And the terrorism is unaffected . Thus having failed to achieve aim of demonetization , the Government and the machinery manning Indian economy has adopted such measures which are putting the lives of common man in more stress. By writing of a huge NPA of 9000 crore plus of BAD debts of the big, mediem or small Industrialists, the Government failed to improve the financial health of the Banks. In last 6 months almost another NPA to the tune of Rs. 5000 crores is again created in banks becasue of the Government's open policy to encourage any tom and dick to take loan from the bank for starting any enterprise in order to create some emplyment avenues for the youths. That proved a day dream. Now the unemplyment index is much more than what it was till June 2016.
The Sixth Pay Commission have made the huge working class poulation of Government and Semi Govenment Organizations flush with funds . They have now become more bold to accept any bribe opnely in New Currency as they are now economiclly empowered to defend any charge of corruption in the courts. Now further the Government is envisaging to enhance their DA because the CPI has increased due to all round price spirall. The petroleum products , household consumption items, school education have become costlier, services had also been affected due to service tax rise to all time highof 15 percent now. The milk prices , drug prices, Travel cost ( including AC trains, Air and fuel cost)have all been hiked,Courier service which used to cost Rs. 20 for local is now costing Rs. 35 /- Bank emplyees ,in spite of inudlging in malpractices during Note Bandi trial period have siffoned out millions of new currency to hoardrs which was recovered by I T or Enforcement agency raids but instead of punishing such greedy criminals, the system is rewarding them . Hence, to continue to retain banks in good economic health the RBI had no remedy but to abdicate its regulating accountability to deny the banks to raise Bank charges arbitrarily and recover from the common man. Modi Government first foreced the common man to be digital and cashless thru' bank and now they are forced to pay thru' their noses for availing these services . These are "Acche Din" why we should grumble ?
As far the Gold seniors or Octagenrians, they do not exist in the eyes of this Government. Millions of such aged persons who are not lucky pensioners were barely surviving at 8% interest with Bank FDs on their life long savings . Since the FD rates have been reducing to a level which cause penury in interst income from a manageable sum to a pathetic peanut income, the Government wants them to block the money in 10 or 15 year bonds ,if they want 8 percent returns. Now can Modi Ji guarantee if an ailing gold senior will survivie even for one more year , due to sky rocketing cost of health care and reduced income? Why grumble ,just suffer is the Mantra to day for the 'moony promise' of better tomorrow.

V ganesan

7 months ago

main job of bank is lending and borrowing in a organised manner and in a regulated manner.LET them allow all account holders to have zero balance axccount .And they make profit by way of spread in interest. all banks in india not withdrawing these charges i am planning a big darna infront of RBI IN CHENNAI.wHY THESE PEOPLE ARE LOOTING MONEY FROM COMMON MAN AND PAYING IT TO BIG CORPORATES IN THE NAME OF BIG NPA.APART FROM THAT THEY ARE MISSELLING MUTUALFUNDS AND INSURANCE.If this trend continues people in INDIA WILL NOT TOLERATE ANY MORE.Banks are only to serve people. Not to loot money from the public.Otherwise ban all banks in india and allow only cash transaction or allow barter system

V ganesan

7 months ago

main job of bank is lending and borrowing in a organised manner and in a regulated manner.LET them allow all account holders to have zero balance axccount .And they make profit by way of spread in interest. all banks in india not withdrawing these charges i am planning a big darna infront of RBI IN CHENNAI.wHY THESE PEOPLE ARE LOOTING MONEY FROM COMMON MAN AND PAYING IT TO BIG CORPORATES IN THE NAME OF BIG NPA.APART FROM THAT THEY ARE MISSELLING MUTUALFUNDS AND INSURANCE.If this trend continues people in INDIA WILL NOT TOLERATE ANY MORE.Banks are only to serve people. Not to loot money from the public.Otherwise ban all banks in india and allow only cash transaction or allow barter system

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