Banks Have Extorted over Rs.50,000 Crore from Customers in Dubious Levies & Charges
People seem shocked at the disclosure that only the public sector banks (PSBs) had collected Rs10,000 crore as penalty from customers for not maintaining a minimum balance in their savings account and for cash withdrawals beyond three times. This data would not have come into public domain but for a question asked in the Parliament.
Actually, the sum reported to Parliament is only a fraction of what banks are recovering from hapless customers. The real sum could at 10 times higher if you include excessive interest, collection by private banks and various usurious charges. Small sums from individual customers aggregate to a huge amount that is going straight to banks’ bottom-line, unnoticed, while they lose thousands of crores of rupees in poor and corrupt lending to large businesses.
The government and the Reserve Bank of India (RBI) are silent about extortive charges collected from ordinary depositors because disaggregated customers rarely fight back and politicians only respond to issues that affect their core vote bank.
https://www.moneylife.in/article/ba...mers-in-dubious-levies-and-charges/56002.html
People seem shocked at the disclosure that only the public sector banks (PSBs) had collected Rs10,000 crore as penalty from customers for not maintaining a minimum balance in their savings account and for cash withdrawals beyond three times. This data would not have come into public domain but for a question asked in the Parliament.
Actually, the sum reported to Parliament is only a fraction of what banks are recovering from hapless customers. The real sum could at 10 times higher if you include excessive interest, collection by private banks and various usurious charges. Small sums from individual customers aggregate to a huge amount that is going straight to banks’ bottom-line, unnoticed, while they lose thousands of crores of rupees in poor and corrupt lending to large businesses.
The government and the Reserve Bank of India (RBI) are silent about extortive charges collected from ordinary depositors because disaggregated customers rarely fight back and politicians only respond to issues that affect their core vote bank.
https://www.moneylife.in/article/ba...mers-in-dubious-levies-and-charges/56002.html
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