Now pay to even pay your own bank

Have you been paying your recognition card measures at a depository financial institution branch? You might soon necessitate to change your wonts for some Banks have got started charging card holders for doing so.

ICICI Depository Financial Institution card holders would necessitate to pay Rs 100 to do recognition card payments in hard cash at ICICI Depository Financial Institution branches, starting June 1, 2008. Standard Chartered Depository Financial Institution have already been levying a complaint of Rs 99 since March 2006.

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But why wage complaints to even pay your depository financial institution the owed cash? Bankers state they are trying to cut down the load on short-staffed branches.

Sachin Khandelwal, caput of the card game grouping at ICICI Bank, said, "We are discouraging our clients from depositing hard cash as there is a dealing cost.

About Rs 100 is what is typically charged and it's not specific to cards. It's a hard cash sedimentation charge."

He states to avoid the complaint card holders can drop their checks in a drop-box Oregon make an European Unions (electronic glade service) or car debit entry to pay their recognition card dues.

R Liter Prasad, general manager, recognition card game and personal loans, Standard Chartered Bank, states that payments made at subdivision counters are an added installation that the depository financial institution supplies and hence the charge. "This is a service complaint for providing Teller installation for making hard cash payments. Customers are informed of this and all other complaints at the clip of applying for the card through the most of import written document (MID)," Prasad said.

In addition, the dorsum of the statement also transports the inside information of the charges.

Clearly, dropping A check in a drop-box a couple of years before the owed day of the month is not a solution as checks take about three years to unclutter if one corset outside the national working capital part of Delhi. "We recognise that checks take a twenty-four hours or two to unclutter and hence we promote our clients to do their payments three years in progress though the check may be dated as per the payment owed date," said Prasad of Standard Chartered Bank.

As for European Unions payments — where a card holder authorises his depository financial institution to pay whatever is billed on his — tin be risky. If a huge, indefensible amount acquires billed for whatever reason, your depository financial institution balance acquires debited automatically.

A new payment option is to lodge hard cash at ATMS. "A PIN-less sedimentation installation have been launched for the benefit of card game clients at all our ATMs. A client carrying his/her recognition card can utilize this option for payment," according to Citibank.

Other Banks with strong recognition card portfolios, such as as HSBC Bank, ABN Amro Bank, SBI, Kotak Mahindra Depository Financial Institution and Citibank denied they were charging card holders for making hard cash payment at branches. Answers from HDFC Depository Financial Institution are still awaited.

But the opportunities are other Banks may follow suit. This is primarily because most Banks now penalise clients for using subdivisions and give inducements for using every other channels such as as ATMs and online payments.

For example, demand bill of exchange petitions at subdivisions could be you Rs 75, but if the telephone banking manner is used, then client would have got to blast out lone Rs 50.

A stop-payment order would be you Rs 50 per check (Rs 100 per mandate) if asked for at a branch. But, if one usages the telephone banking channel, then HDFC Depository Financial Institution complaints only Rs 40 per check (Rs 80 per mandate). ICICI Depository Financial Institution doesn't offer any cut for stop-payment via telephone banking, but it is free if one usages the cyberspace banking mode.

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Some banks, however, see a downside in trying to force clients away from branches. Sanjay Sharma, IT adviser at IDBI Depository Financial Institution said, "When Banks advance electronic payments and transactions, they must also maintain in head that they are missing an chance to cross-sell products."

If there are no clients at branches, to whom will Banks sell insurance, common funds, and other merchandises that aid them gain commissions?

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