Mr Finance Minister : Please Wake Up

There is one issue, where the Finance Minster does NOT seem to have given any attention., This has two sub-points :

One : All along as the government printed the currency notes, the cost of printing as well as for the distribution through banks was always absorbed by the government. Also it had involvement of government employees for this work to be done.

Two : The Cost of collection and disbursement of cash through all branches and ATMs was absorbed by the respective banks. This also had involvement of Bank employees.

Now to go cashless, when a Debit card is swiped at a business point like a stores, the amount gets directly transferred from the purchaser’s bank account to the seller’s bank account.

This has no expenses like the printing of currency notes, it distribution to banks, and collection/distribution at banks. No government and/or bank employee is directly connected for this transaction.

And yet, there are charges levied by the government through taxes as well as by the banks through annual and other charges for the debit card.

For a person like me, who would otherwise support the less-cash move by the government, would vote against the government just for these extra charges, which earlier were absorbed by the government/banks but are now charged to the common public.

Not fair at all. This needs to be reviewed.

One could argue, that the Visa and Master Cards call for their respective charges, which need to be collected. Then why depend on these organization? Why NOT promote “RUpay cards” for all the debit cards issued by the banks?

Unless this point is taken seriously, I stand against the government policy. This includes the current government and all it’s policies because they too may have some such hidden taxation.

Jai Hind ! more

Helpful Transforming India Feb 12

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Ankur Mathur

I agree with Mr Nagaraj J. Most of these so called charges are waved off if you maintain certain balances in your accounts. This may vary from bank to bank and for diff types of accounts. Coming to the points raised by Mr Anaokar, I really don't understand the sense of entitlement some of us have in receiving services for free. This thing about banks absorbing cost of handling cash was a misnomer because there was no absorption. Whatever the bank could not charge the client would be charged to government as most banks were government owned and guess where did the govt earn its money ?? By going online a customer is still saving money under following heads 1) cost of to and fro transport to a bank 2) cost of time spent in doing a physical txn vs online txn 3)maintaining documentation / paper trail for physical txn 4) cost of risk of loosing physical cash 5) cost of not having enough physical cash available at the time a deal is available. Now coming to the misconception that banks have "no involvement" in an online transaction. This is misconception because any online txn requires both hardware and software for its to execute a txn...both these require costs to be incurred. Once a txn has happened, it still requires the normal accounting and reporting actions which includes reconciliations and analysis amongst other things, which all have associated cost. So despite paying (and in many cases as Mr Nagaraj eluded to earlier not paying) we are saving so many other costs and getting convenience. I hope this helps the readers puts things into perspective and decide for themselves. more

Apr 12

Nagaraj J

I am not sure whether the issue is related to some banks. I find no additional charges in my statement for using cards. more

Feb 27

Prakash R

Cash less movement is going in a wrong way... I can find all the ATMs are again filled using newly printed 500 and 2000, as the banks are reducing their work. what actually should happen is that all the ATM should be filled with Rs. 10, 50, 100 and coins of change of Rs. 1, 2, 5 If a person is going to spend 500 and more, then he can use ATM if a person is going to spend only less than 100, there he cannot use ATM with small business man ( eg, for buying geen vegetable Rs.10 daily, Rs 10 to 40) for filling air to vehicle, ie, for daily basis. buying a daily newspaper for Rs 5 or 6 ). People are using money for giving bribe, politicians for their vote, Chit fund, - stop these illegal activities. Exited coins changes like 10, 20, 25, 50 paise are not in use. so all the cost price have been rounded. eg, if a product cost is Rs. 49, and the buyer gives Rs.50, the consumer doesnt give the Re 1 and says no change. the buyer also cannot fight to the consumer for Re 1. more

Feb 27

K Chatterjee (Expert : S & T Management)

Finance Minister should also think about double taxation on tax paying citizen- one pays tax on his or her income and get the rest of the amount for his or her own use. Now when the tax payer want to use this balance amount for certain purchases/services he/she has to pay tax again- thus ending up by paying nearly 50% of income as tax. Isn't it double taxation? Ministry tries to find out ways to safe guard against double taxation for business houses- why not for the individual tax payers? This is completely unethical and ambiguous.Need to be stream lined. more

Feb 27

HITEN SHAH

it officer keep on bank deposite all the accounts and enquiery about all account details and all bank manegers and his and his femily bank details. more

Feb 19

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