Published On : Fri, Oct 30th, 2020

VTA condemn cash handling charges by Banks; writes to Govt & RBI

Vidarbha Taxpayers Association (VTA) has observed that various banks have started charging it customers for their basic fundamental duties, including handling of cash like withdrawal and deposit too, although initially for few transactions there is no charge, however after the limit is over, they charge, which cumulates to considerable amount every month especially on traders’ accounts.

Taking this issue on priority, VTA dispatched a memorandum to Narendra Modi – Prime Minister, Nirmala Sitharaman – Union Finance Minister and Shaktikanta Das – RBI Governor, requesting their intervention and regulating such charges in public interest.

Shrawankumar Malu, president of VTA said, most worrisome part of this situation is that the customer is absolutely unaware of charges being debited to his/her account, its only after the bank statement is reconciled the client gets to know about the total amount levied by the bank. There numerous small and medium traders / retailers sell products in cash including cinema halls, petrol pumps, medical stores and likewise need to deposit their cash almost daily and if such charges are levied by banks on them, it becomes absolutely illogical and illegitimate. Likewise maintaining minimum balance by a minimum wage or similar salaried personal is almost impossible.

Tejinder Singh Renu, secretary of VTA submitted that although such policy by Banks may be supporting ‘Less Cash Policy’ of the Government including Covid-19 pandemic situation; however it should not violate Constitutional Right of the Citizens as per Article 19(1)(g) to practice any profession, or to carry on any occupation, trade or business by causing such unpractical hurdles. Banks need to focus on their Non Performing Assets (NPAs) as those loans cause dent in their profits and in order to reduce their red, banks charge such honest taxpayers for little services which is surely impractical and dishonest.

Under such circumstances, VTA strongly believe and suggest that RBI along with other governances on banks should also regulate charges being levied by them on various services they provide in regular course. Account Holders are never informed about the charges they debit to the respective clients, although traders and businessmen get to know about the same while preparing their accounts, but what about senior citizens, retired personals, small traders and retailers, for them such charges are by all means immoral.

VTA requests the Government and RBI to regulate such charges in public interest as practically every citizen is affected by such charges and if not regulated now, banks have a monopolistic advantage of the same and can become an issue of great concern if not regulated in time.