No sense in invoicing ATM transactions
Writing in the online edition of ET, former central banker G Sreekumar points out that banks save money when customers use ATMs instead of going to a branch and using up time. ‘a cashier. Using expensive real estate and staff time to have people line up to inquire about their bank balances or make a simple withdrawal doesn’t make sense other than disrespecting the customer.
The reason why a savings bank account offers a lower interest rate than a fixed deposit is that the customer has the right to withdraw money at any time without notice. A checking account offers no interest for the same reason. This right is violated by limiting the number of withdrawals that can be made for free. The use of ATMs allows people to exercise their right at minimal cost from banks. Sreekumar cites a study from the late 1990s which estimated that the cost of a customer using ATMs was one-tenth of the cost of a customer using a branch instead.
Another reason to encourage rather than discourage the use of ATMs is that they allow cost sharing, for example in rural areas. Instead of multiple banks opening multiple branches, they can share an ATM, white label, or whatever. Fortunately, customers are able to fight back.
They can simply open or operationalize a payment bank account with a mobile operator, transfer most of the funds from their accounts with their banks to the payment bank, earn a decent interest rate, and withdraw money. money as they please. In the meantime, let the banks rid their electronic payments of the glitches.