Decreased Banking Fees and Charges for Financial Inclusion

A few months back, domestic banks decided to lower their ATM withdrawal fees and online transfer fees. They also cut costs for account closures, maintenance fees, and early loan payouts. However, they did hike up fees for over-the-counter withdrawals and cashing checks. But are banks making more money from these increased fees? According to Michael, it’s unlikely, as most customers have shifted away from using checks and over-the-counter withdrawals.

 

Kareem Michael, Governor, Central Bank

“I will say that the increases on this side should be less than the overall activity within the financial system. So, the way how online transactions have been growing and growing exponentially, versus how much people actually want to go into a bank and wait in line over the counter. I think it is slowly sinking in with those people who are still using checks that it is not the way to go. There are better ways to conduct financial transactions. But, I am not the one to tell somebody who has his entire system built around checks to move away from checks. It is unfortunate that there was a spike on the other end. But our objective is financial inclusion and increased access to services within the financial system and when we talk about services, more efficient and digital forms of payment. And one of the other projects which we talk about the next time is our file payments project. I want everything to be on the access from your phone. That is what we should be doing and moving towards.”