Grahakjago (S.K.Virmani)©

An article titled "Do the charges for SMS services being charged by State Bank of India are ethical?" was written on the blog on 5th April 2014. A copy of the article was mailed to State Bank of India. However, the amount got refunded. Such unethical charging for SMS Alert Services is not only by the SBI but almost all banks with exception of UCO Bank resorting to. While most of the banks are charging Rs. 15/- per qtr., UCO bank is just charging Rs. 0.12 per SMS for transactions. All the consumers are facing the same problem and even the consumers may not be aware of such money being deducted from their account.  It is understood that the matter was taken up by  Department of Consumer Affairs  with Department of Financial Services of Ministry of Finance. The view points were concurred by the Ministry of Finance. It is learnt that Ministry of Finance has also directed all the Banks and RBI and IBA to ensure that RBI's directives are implemented immediately and furthe...

Why Banks should charge transaction fee for use of ATM cards? Indian Banks Association is learnt to have requested RBI to allow banks to charge customers in the metros to pay for accessing ATMs of other banks but continue with the current cap of five free transactions a month for rural customers. The IBA also says that banks are loosing Rs. 400 crore a month because of the excess security requirement at 1.4 lak ATMs. IBA also need to consider following factors before they request the regulator RBI for allowing them to charge fee from the customers. 1. Use of ATMs have definitely reduced the burden on the banks as it has also resulted into reduction in manhours for dispensing cash from its cash counters. Indirectly it has facilitated for diversion of resources and increased business avenues and efficiency.  In fact some banks are charging annual card fee which also need to be withdrawn as the cost of operation has not increased. The technology always reduces the cost...