Claims of IBA are misleading

Indian rupee collection

Image via Wikipedia

RBI accepted the IBA’s suggestion of “Savings bank customers will be subject to a withdrawal ceiling of Rs 10,000 a transaction at non-home bank ATMs.” They claimed that this decision is based on their research on customer behavior. A study by the Association showed that the average cash withdrawal per transaction from ATMs is Rs 3,500 and that 90 per cent of the transactions were under Rs 10,000.

The following facts should be considered while making any valid conclusion from the above research.

  1. Most of the ATMs in India can dispense only 40 notes in one transaction.
  2. For the past 4 months, most of the ATMs running out of Rs.500 and Rs.1000 notes and most of the times dispensing only Rs.100 notes (Rs.4000/transaction).
  3. If I wish to withdraw the proposed Rs.10000 from the ATM which has only Rs.100 denomination notes, then I need to make 3 transactions.  Then I can make only two more transactions for the rest of the month. It is unfair. In this scenario above research findings become invalid.
  4. RBI should not become puppet in the hands of Banks lobby. RBI should make decisions based on their own and Independent research not based on on body which has huge vested interest.
Reblog this post [with Zemanta]


Post a Comment

All comments are moderated. Please post no spam

Disclaimer & Privacy Policies

(c) Mrs. Ruby Christy. This site and contents are owned by Mrs. Ruby Christy;
Use of this website and/or services offered by us indicates your acceptance of our Disclaimer& Privacy Policies.

Information and opinions provided on this website ( has been independently obtained from sources believed to be reliable. However, such information may include inaccuracies, errors or omissions. and its affiliates, information providers or content providers and R.John Christy and his Family shall have no liability to you or third parties for the accuracy, completeness, timeliness or correct sequencing of information available on this website or feeds, or for any decision made or action taken by you in reliance upon such information, or for the delay or interruption of such information.,its affiliates, information providers ,content providers and R. John Christy and his Family shall have no liability for investment decisions or other actions taken or made by you based on the information provided on this website. Any action you choose to take in the markets is totally your own responsibility. and R. John Christy and his Family will not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of this information. This information is neither an offer to sell nor solicitation to buy any of the securities mentioned herein. Opinions expressed by R. John Christy are his own and not of his past, present and future employers.
The DoubleClick DART cookie is used by Google in the ads served on this websites displaying AdSense for content ads. When users visit this website and either view or click on an ad, a cookie may be dropped on that end user's browser.
  • Google, as a third party vendor, uses cookies to serve ads on this site.
  • Google's use of the DART cookie enables it to serve ads to your users based on their visit to this site and other sites on the Internet.
  • Users may opt out of the use of the DART cookie by visiting the Google ad and content network privacy policy.
  • never collects any personal information of visitors.