In an attempt to boost digital economy, the public and private sector banks in India have decided to come heavily on their customers by levying unreasonable transaction charges. This move will act as a dampener and will discourage cash transactions in over-the-counter mode.
As per the new rules, customers performing more than four transactions are liable to pay the transaction charges which vary for different banks. Majority of the rules apply for Savings Accounts. Also, it is likely that the minimum balance that is to be maintained in a savings account will be increased in the coming days. Banking customers have all right reasons to get infuriated over these punitive measures which will restrict them from performing transactions beyond certain number.
This move may be termed as an exercise of monopoly by the entire banking sector. But, here is a smart alternative through which one can perform any number of transactions without any service charges.
India Post offers reliable and basic banking services at a low cost through its 1 Lakh 55 Thousand post offices across the country. One can open a Savings Accounts with a minimum balance of Rs 50. There is no cap on the number of transactions that one can perform for an account. The interest rate for a savings account is the same as what Banks offers. The interest rates for other savings schemes like RD, TD, MIS, KVP and NSC are more or equal compared to the interest rate offered by any public or private sector in India.
Without any additional charge, ATM cards with no limit on the number of withdrawals will be provided to every Savings Account in Post office. Due to the interoperability, Postal ATMs can be used in any bank ATM and without any fee for the transactions. One can operate his account from any post office in the country due to ‘Core Banking System ‘that was rolled out last year.
Though the internet and mobile banking services are not available at this point of time, Department of Posts is putting efforts to bring them into effect in the next few months.
Anyone who is looking for an alternative to stave off the exorbitant transaction charges in Banks, opening an account in Post office is the smartest way.
