Saturday, 22 November 2014

Pay Rs 20 for More Than 3 ATM Uses at SBI, HDFC Bank, Axis Bank

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Pay Rs 20 for More Than 3 ATM Uses at SBI, HDFC Bank, Axis Bank

Good news for poors, while they are being encouraged to open saving accounts with bank, new rules would definitely make them happy. They will not enjoy enough earning through bank interest rates, but they should be ready to loose their principle money now.

Poor Banking consumers will have to pay more if they are prolific with ATM transactions as State Bank of India (SBI), HDFC Bank and Axis Bank have capped the free usage in six metros at three. Amazingly the capping and additional fees on excess usage come following a recent circular by the Reserve Bank of India allowing banks to limit the number of free ATM transactions to five - three in the largest six cities and two elsewhere - a month. New norms, have been accepted by the RBI, a customer can make three free ATM transactions in the six largest cities at own-bank machines and two elsewhere. The new rates by SBIHDFC Bank and Axis Bank will be applicable to transactions done in Mumbai, New Delhi, Chennai, Kolkata, Bangalore and Hyderabad. SBI, which had reported a loss of nearly Rs 400 crore by way of paying other banks as interbank ATM usage in FY2014, was first to cap free ATM transactions at three and impose fees of Rs 20 per subsequent transaction. Onward November 1, the new norms are effective at India's largest lender, SBI. However, the bank has allowed more free ATM transactions to those who avoid visiting its branches, and unlimited transactions for those maintaining large balances. The second and the third largest private sector players - HDFC Bank and Axis Bank, respectively - have also followed new rules and said effective December 1, they will also be enjoying Rs 20 per transaction above five a month. While HDFC Bank will charge Rs 20 for cash withdrawals and Rs 8.5 (extra taxes) for balance inquiry, mini statements, etc., At third-party ATMs, HDFC Bank and Axis Bank will charge for more than three transactions, down from the earlier five free transactions, the banks cleared in separate customer notifications. Axis Bank, with 12,000 ATMs, however, is offering 10 free transactions for its Prime Plus savings account and Prime salary account holders. But both these account holders need to have a minimum opening balance of INR 1 lakh and they can have first five free transactions at non-home bank ATMs. SBI has been charging for more than own-ATM withdrawals a month at accounts having less than Rs 25,000 in monthly balance. Bank Accounts with over Rs 25,000 and above in balance, however, there is no limit at its own ATM network. But, their access to third-party ATMs is reduced to three a month. Those who exceed the limit will pay Rs 5 per transaction at its ATMs and Rs 20 at machines belonging to others. The bank is charging Rs 8 for each non-financial transactions above the cap. The lender has also raised the number of free usage on its home network from five to nine, if a customer does not visit a branch during concerned month. Those who maintain average balances of over Rs 1 lakh, SBI is providing unlimited access to all ATMs. Those with less than Rs 25,000 balances are charged above five transactions on its ATMs and three at third-party machines. As per latest data from the RBI, at the end of June quarter there were 1,66,894 ATMs in the country and with 44,929 machines, SBI is way ahead of its nearest rival Axis Bank by more than three times or over 27 per cent of the market. SBI has 12.59 crore cardholders and accounts for 31 per cent of the 40.9 crore debit cards in the country and its cardholders are responsible for over 41 per cent of all ATM transactions. Anyway, customers are not happy with the move, while they are being charged for their own money withdrawal.

Banks are known for extracting money from the customer at the slightest opportunity. This is why, Really Banking sector is high growing and rewarding sector. Instead of finding innovative methods and putting extra effort to increase revenue, banks are finding short cuts to extract money from customers. Banks are earning huge profit. It is become habitual to Indian corporate hat initially they give huge offer and free service, low cost to get customer but after that they changing the rateservices and policyRBIand all finance regulators including the government have started working to ensure that the corporate make money at the cost of public expense. Banks are making profits by reducing no. of staffs in branch's due to ATMs. Will banks include failed transactions and out of paper transactions also in free transactions? Most of ATM run dry not only on weekdays / holidays. Its tough time for students & some people, who will withdraw small amount only as & when required, to prevent being pick-pocketed. ATM were introduced with the purpose of reducing the queues at the cash counter and all this was going on smoothly till the RBI recent circular which opened the door for banks tocharge for transaction exceeding 5 per month. 

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