RBI has suggested that banks should charge for cash withdrawal and deposit through cheques while the government agencies should do away with convenience charges for online payment of utility bills.
As per the discussion paper floated by RBI, high cash withdrawals and deposits of cash by individuals may also be charged in order to avoid increased dependence to cash-based transactions.
The other major suggestions include restriction on number of free cheque books, high fee on cheque books, mandatory online payment of credit card bills and ban on post-dated cheques. It also suggested that the government should discourage cheque collection boxes at public places.
The suggestions, on which the RBI has invited comments from public by February 28, seek to encourage greater adoption of electronic mode of payment.
Still most of the household savings is brought back to our banking stream. Bringing the rural population to the banking stream is not fully achieved. Before that, putting all these restriction, will further prevent the effort of bringing these rural folk into banking stream and putting the household savings into development activities.
Suggestions are good but it is not considering our rural folk and knowledge about usage of electronic medium.
We have seen lot of companies who’s crediting the wages of their workforce into bank account through salary account / reward account etc., the employees are taking the help of security guard who’s standing in ATM Kiosk, for withdrawing their wages. They are not aware about the usage of ATM.
All these things should be considered before making any system.
internet banking should be encouraged.all current accounts should be issued bank statement by e-mail.any current account e-mail if provided hard copy shopuld be charged.
this is most welcoming action. but tobe charged only on current accounts and on savings accounts allowable cash transactions subject to minimum cash transactions or volume for a specific period. after that charges will be levied. savings are for the purpose of middle income, lower income people to save their money in account instead of kept in their pocket. to pay utility bills through DEBIT CARD. PLEASE COMBINE ATM/DEBIT CARD which conveys same use.
Good , encouraging electronic mode of transactions is welcome, but practical aspects such as wide availability of electronic medium and categories of general public who cannot or do not have access to electronic mode should also be kept in mind by RBI.
Regarding the other major suggestions by RBI such as restriction on number of free cheque books, high fee on cheque books, mandatory online payment of credit card bills and ban on post-dated cheques and that the government should discourage cheque collection boxes at public places “should be considered as NOT necessary as this may put general public to unnecessary inconvenience and also this acts as an impediment to make the banking services available to every one whereby the aim of making the banking more popular is hindered.
First , good infrastructure electronic medium be developed and maintained through out India.