Bhopal: People in the state capital have been grappling with a lack of cash at the automated teller machines for past few days and now there is a new annoyance in the form of banking charges to add to their injury.
Businessmen are facing the problem of both lack of liquidity in the market as well as lack of demand. There is little hope of revival of demand before marriage season. New Market Trader’s Association president Satish Gangrade said, “There is already cash crisis in the market and banks is levying charges on transactions. So people are now facing problems in both ways. It is just like financial emergency situation in the country. Just because of liquidity crunch, our business has already been ruined. There is thin scope for market revival in marriage season. It is big loss for the business community”.
There is little hope for the business community reeling under the present crisis. They are now looking up to an intervention from the Reserve Bank of India for relief. Kalpatru Multipliers Limited MD Adityamanya Jain said, “RBI is supposed to take cognizance on banks over their charges. Even in cheque bounce of small amount, both the bearers and issuers both have to bear Rs500 as penalty. So it is excess on the part of the banks.”
People have also tried to ward of charges by making lesser deposits at the banks and keep a buffer of liquidity with themselves, adding to the crisis. Just to avoid, charges of the banks, people started hoarding cash, added Jain. Thirdly, in galla-mandi, a term used to denote market transactions in cash, there is system of cash payment. Farmers hardly prefer to deposit cash in banks. So it led cash crisis. Banks charges has increased problems to people, said Jain
Notably banks charge their customers for transactions of cash deposits and withdrawals beyond a stipulated number of free transactions in a month. The move is seen as a measure to encourage digital transactions. Banks, in general, charge Rs 150 per transaction, beyond the four or five free ones each month. For home branch transactions, the banks allow deposits or withdrawals of up to nearly Rs 2 lakh free of cost at one go per day. Beyond the charges vary from Rs 5 to Rs 150 per Rs 1,000 depending on the amount.
