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Banks Put Restrictions on Cash Deposits and Withdrawal per Month

PSUs are curbing the limit of deposits and withdrawal per month. Finance Minister stated yesterday that no other PSU bank has increased such charges recently; after consideration of BoB’s recent update regarding limiting withdrawal from five to three per month.

One of the largest public sector lender Bank of Baroda on Tuesday that is 3 November 2020, decided to withdraw the latest change in services changes on cash deposits and withdrawals ‘in the current situation of COVID-19 pandemic’, banks across the board have restricted free cash deposits and withdrawal services with most allowing only two or five cash transaction per month and make norms of putting a service charge beyond this limit.

The largest lender, State bank of India allows only two free cash withdrawal in a month for the customer keeping an average balance around 25,000 monthly. SBI revised its service charge policy effecting from October 1, 2020.

As per the recent revision made by the BoB should have come in effect from November 1, 2020, the customers are allowed only three free cash deposits and withdrawal per month. Bank of Baroda had reduced its limit of cash deposit and withdrawal from five per month to three per month. But Bank of Baroda has rolled back its previous decision on November 3, 2020, due the public outrage and oppositions protest against this limitations.

“Days after releasing new changes in the cash deposits and withdrawal charges, BoB on Tuesday November 3, 2020 withdrew it with immediate effect and stated that it would not charge for basic banking services following a public dissatisfaction.”

In order to clarify the recent changes in service charges made by the PSU, Finance minister Sitharaman on Tuesday stated that “no other PSU bank has increased such charge recently. However, all PSUs and other banks are permitted to implement charges according to their services in a fair and non-discriminatory manner. They are also instructed to make transparency in each transaction. Other PSU banks have also intimated that they do not propose to raise bank charges in the future in view of the pandemic.”

Banks should be focused on cost involved policy while making revisions in service charges so that customers do not bear the burden in the future.

Banks are the backbone of any economy it is Government’s responsibility to provide an easy platform for transaction, deposits and withdrawal to each customer. Indian government always has been dedicating to make the banking system transparent and independent. Due to corona, we faced economic turmoil but the government is expecting a boost in the economy.

 

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