Banks
have become a part of living and have evolved over the years. The recent
decision to charge customers for ATM usage set the mind on the run. Racing back
to the days of the fabled Banker Margayya of R K Narayan to the present
sophisticated banking norms, the basic intention remains the same. Banks as
institutions suck the money which is stowed away for a rainy day or lying in
excess for a nominal interest to lend the same to the needy for a higher
interest so as to earn a profit. Over the years, the banks have assumed a right
to dictate terms to the source of its business which is the customers who come
in the form of depositors rather than the customers who come in the form of
borrowers.
Let
us look at the various restrictions imposed on the depositor. The first was a
minimum balance to be maintained. Then, the current account scheme surfaced which
would not carry any interest but dangled the carrot of overdrawing facility
with a cap. It then brought in the fixed deposits which would necessarily have
to be parted with for a specified time frame for a slightly higher rate of
interest. Schemes such as sweep from savings to fixed accounts were introduced.
Parallely, the borrowers were being let off the hook in the form of bad debts. These
borrowers were either belonging to the categories of farmers, weaker sections,
minorities etc or to the elite who could power themselves through any judicial
system.
The
gap in the desirable profits and the actual profits set the creative brains
thinking. Introduction of e banking, ATMs, debit cards etc came with no hidden
costs. The manpower manning the banks were sacrificed leading to proportional
reduction in the potential customers. With no intention to collect either from
erring borrowers or being able to flex its muscle due to its deteriorated
manpower, banks resorted to camouflaging its inadequacies as services. The
costs came to be levied and the latest of this is the cap on the number of
withdrawals by a customer. Ironically, it was the same banking system which
promoted ATMs and debit cards by refusing to entertain customers request to
withdraw their own money from the branches. Today, it uses the money of these
very customers to advertise their intention to retain their money. Further, the
ATMs are programmed to not release money beyond a sum within a swipe. Thus, one
is forced to swipe the card multiple times to obtain the money lying in his
account. Thereafter, the same customer is penalized with service charges
probably with a service tax to obtain his own money. The banks which were once
channels of only accounted money are now channels for routing moneys of devious
means too and the irony of the banking system continues.
Dr Manmohan Singh may
have signed off but Mr Rajan needs to think from the depositor’s perspective
too! As the Government encourages banking will the banking system promote an alternative to itself. Fodder to think!!!
