No More free banking services for Customers
Posted on: 25/Apr/2018 2:54:09 PM
Indian Government sent notices to banks on tax liability that comes around a total of Rs6000 Crore. Banks estimate the increase in this total amount on account of providing free transactional and banking services to the customers. Banks are not in a position at present to charge extra fee from the customers in simple transactions done directly or through Automated Teller Machines (ATM).
In terms with the tax liability issued by Directorate General of Service Tax (DGST) the banks will likely challenge the tax notice. But the DGST plans the tax calculation on the basis of bank’s collection of extra charges from the customers who do not maintain a minimum balance.
It is a two-way clash that will most probably pluck money from the pockets of bank customers. Banks may forcibly charge money from the customers for almost all free transactions they have been experiencing up to date. People will be charged for ATM transactions and situation may go into a chaos when banks starts to charge for internal and external wireless e-transactions as well.
Before the problem fires up to big flame Banks decided to challenge against the notice issued by the Government on this big tax liability. This challenge of the notice will be escalated to the finance ministry for the final decision. State Banks of India drew back the earlier charges it put on customers maintaining balance lower than the minimum balance. This decision of SBI is purely based on the reviews and feedbacks received from the public and their threat to close down all the accounts if the situation prevails.
So much of tweets and posts about the recent banking issues are recognized by the banks and in order to save the healthy number of customers in all respective branches banks have to decide immediately to sort out the issue with DGST and finance ministry.
