Feb 11, 2019

Exploitation of the poor by commercial banks Featured

Commercial banks have taken measures to deduct a monthly fee of Rs 25 from account holders who maintain minimum balance of less than Rs.1000. 

Accordingly, Rs. 25 per month will be deducted from savings accounts less than Rs. 1000 and the account will be terminated at the end, according to commercial banks.

Commercial banks state that this step has been taken as it is difficult to maintain accounts less than minimum balance of Rs. 1,000.
Accordingly, a normal savings account of Rs. 1000 will be canceled in 40 months and the account will function as usual if the account holder debit sufficient amount of money in the mid of the process, commercial banks say.

However, this decision has been subjected to severe criticism of retired bank officers. They point out that the possibility of a poor man to hold a bank account is hindered by the measure. For this reason, account holders have begun to make money in rural banks and other financial institutions.
According to retired bank officers, the majority of countries in the world have tried to develop the poor through their own economic policies, but banks here are exploiting the poor further.

It is said that the confidence on the banks in the country has been badly tarnished due to financial heists took place in the recent history. Exploiting the poor customers would further dent the customers' confidence.