Banks to limit free ATM transactions to 5 per month

[xyx2000]

My hdfc a/c has free unlimited ATM withdrawals, it is a feature of the a/c

 

[Sushubh]

government would implement a tax. not a bank charge. so bank charge could be in addition to the withdrawal tax.

 

[mhsabir]

The banks may be forced to bear the brunt for salaried/premium accounts.

 

[Sushubh]

if government implements a tax, i do not see how banks can absorb that charge even for their premium customers. it would be like banks saying that we would absorb the service tax on things we actually charge from you like on yearly fees for premium debit and credit cards.

i mean charge for neft etc. are optional. but a transaction tax on cash withdrawal would be a tax not an optional charge.

 

[volcano619]

How can they think to introduce something like this at such a time ??
To be honest I would want to see the charges occurred for withdrawing from other bank ATM to be dropped,since ATMs even now are struggling to keep up with the flow of cash..

 

[Sushubh]

that's the thing. now that cash is relatively easily available... the only way to prevent recollection of black money (as cash reserve in tijoris etc) is to make illegal the storage of cash above certain limit and de-incentivise cash withdrawn pushing more people to pay digitally. otherwise, in six months, things would be back to normal. with 2000 rupee notes, storing cash would be even simpler than before as you would need storage for half the number of notes. and it's not like they can keep on demonetizing currency every year to force people to get rid of stored notes.

if they do not implement these measures, they would have little to show as benefit of the whole demonetization effort by the 2019 elections.

meanwhile of course, they still would not fix the whole issue with online payments. i do not mind paying 1% extra for paying water bills but it is not something that encourages me to pay online. they are now enforcing online payment of electricity bills above a certain amount. if they do not remove the extra charges for the same, it's pretty much a form of government sponsored extortion.

Digital India: Haryana government to accept electricity bills through online payments

last month when i paid the electricity bill, Paytm was the only option that did not cost me extra. dhbvnl website was charging me extra for the same.

 

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[mhsabir]

Its going to be tough, as many low salary employees are likely to push their employers to pay them cash and/or refuse to go digital citing this as the reason.

 

[mhsabir]

Demonetization excuse was accepted saying cleansing black money or whatever. Lack of money at ATMs / Low dispense was attributed to slow printing due to the secrecy involved. This cannot carry such an excuse.

I know companies are now pushing for bank accounts for depositing salaries as low as 4000. Now imagine 5 or 10 rupees being charged for a person with this salary. And by mistake or for some reason he has to do it twice or thrice. Thats 20-30 rupees just like that.

Unless they take a middle ground like 3/5 transactions free, they make it like 10k withdrawal free. Tax, on top of that kind of thing - Maybe that will work to reduce opposition to such a move.

 

[Sushubh]

If the fee is percentage wise, I would probably stick to paying using card where I can. If it's per transaction, I would be withdrawing from bank one time every month. They are essentially negating the whole point of ATMs. The government gains in every case as they make money from service tax from all kinds of charges.

 

[mhsabir]

Is the govt preparing ground for introducing cash withdrawal tax in this budget?

So, its now new - but see the limit was over 50k, hence most of us are not even aware of it... That too only non-savings account

Previously, between 1 June, 2005 and 1 April, 2009, the UPA government under finance minister P Chidamabaram had introduced the banking cash transaction tax (BCTT) to curb black money transactions in the country. The rate of 0.1 percent of cash withdrawal was levied under BCTT, other than from savings accounts. This tax was levied on any individual or Hindu undivided family towards withdrawal of Rs 50,000. For entities, the tax was imposed on withdrawal of Rs 1 lakh in cash.

However, the government then withdrew the BCTT rule in the budget of 2008-09, suggesting that the tax department had enough sophisticated information collecting mechanism to curb black money, the Business Standard report said.

 

[volcano619]

This is turning into a commercial stint now.. 😕
Digital India is hurting common people and various private sector operations are getting boasted and the government seems to be fueling it..

 

[Sushubh]

RBI panel on ATM transactions recommends levying cash withdrawal charges above Rs 5,000

HYDERABAD: The Reserve Bank of India (RBI) committee on ATM transactions made a few eyebrow-raising recommendations last year. From imposing fee on ATM withdraw

www.newindianexpress.com