Banks ready to charge ATM fees

Recent newspaper reports have been saying how banks are preparing to start charging consumers for using their ATM facilities. From what i understand the reason for this is as follows...

With the recent attack on a woman in a bangalore ATM ( she went into a coma) , the RBI made it mandatory for banks to putnup security guards at every ATM. The banks it seems had guards placed only on select ATMs. With this new rule now , their costs are going to go up significantly.

They are planning to put a fee of around Rs 15 for every transaction that you use the ATM for. They are also claiming that these additional costs are going to make the ATM product give negative returns.

I would like to however ask the banks a simple question, not every product needs to have a positive return, because some products give significant brand awareness and hence recall value , or that if they were making so much losses, how come their profits yoy are going up significantly..

The problem is that peoples understanding of a decent profit .. Those expecations have changed significantly. Banks expect that they will give fd around 9% to their consumers, but for them a less than 20+% is below par.


We need to ensure people expect less and do what is fair...

Its no longer simplefinancialsense in this hike.

HOME LOANS at HDFC

I am right now at the hdfc branch in delhi trying to get my disbursement for my home loan.

The good thing is that the process at the lender is quite streamlined . You come in, get a number when you fill up a slip and then the waiting happens.

Being a process guy, i feel that hdfc should have a quicker process for existing customers who are coming in for a quick disbursement. I mean my time with the banker will be less than 4 mins and my waiting time will be around 2.5 hrs. It also upsets me that i need to wait for so long.

The information is provided beforehand about what i am there for.. Which enables this kind of break-up to happen.

I also dont see new technologies being used. It should be easy reduction in costs for all of this to be done online and the money transferred to the builders account in a jiffy.. Without the need to travel.

Lots of saving potential for the bank- will improve their bottomline quite significantly

hope someone from hdfc is listening.. Free consulting advice which would cost them more than a million $

simplefinancialsense