Making Banks Accountable to Retail Customers - Moneylife

Making Banks Accountable to Retail Customers - Moneylife

Online comments:

MG Warrier 2 seconds ago

A well researched analysis.

The costing and pricing of products followed in financial sector is not
different from those followed by MNCs for most of the consumer products
including life-saving drugs.Always, profit from every transaction is the
objective. What banks often forget is, their resources come from the
clientele-public- they offer to serve.

In response to a recent media report which said “SBI says ATM
operations in losses, supports idea charging customers ”(January 13) and
a related report which spoke about “RBI to examine proposal for
limiting free ATM transactions”, I had responded:

“ It is common knowledge that banks discourage account-holders who enter
banks’ premises to withdraw small amounts of cash(upto the limits
allowed for ATM withdrawals- Rs15 to 20 thousand per day). The costing
methodology for arriving at profit/losses in ATM maintenance should
factor in inter alia (a) the low interest paid on Savings Bank accounts
from which ATM withdrawals are made and (b) the savings in costs-
man-hours, stationery etc- when transactions are managed through

Another aspect Reserve Bank of India and banks should look into is the
need for several ATMs in the same locality or sometimes in the same
shopping area, maintained by different banks. As the present
infrastructure and technology for ATMs do not leave much scope for
‘competition’ among service providers, pooling of resources and having
ATMs based on need could be thought of. Where ATMs are working within
short distances, say 100 meters or so, bringing them together under one
shelter will save costs on rentals and security.”

The Indian managers are used to obeying super-imposed regulation and the
day ‘self-regulation’ will work is far off. When government/s and
regulatory bodies are not able to think and work on same wave length,
the situation is taken advantage of by vested interests.


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