Kiosk banks loot customers as ATMs go dry

Kashinagar:  With the ATMs in Gajapati district’s Kashinagar NAC area always staying dry, the customers here are experiencing difficulties apart from being fleeced by kiosk banks.

Out of the four ATM machines in this town, there are two from SBI and one each from Andhra Bank and HDFC bank. That said, most of them either are out of order or out of cash at any given time. The authorities barely attempt at offering prompt service despite repeated complaints.

Meanwhile, kiosk banks – portable banking facilities expected to offer their services in rural areas – are filling the void at the cost of rural inhabitants and at premium transaction fees that are illegal.

Instead of remote villages, one such mini bank can be seen functioning in Kashinagar town area. Local residents alleged that the mini bank loots the customers through high transaction fees.

“We have money in our accounts. But the ATMs have been running without cash for last one week. At times of need, we are forced to use the mini bank to withdraw money,” alleged a customer while adding, “The people in charge of this mini bank are asking us to pay Rs 100 for every Rs10, 000 withdrawn. They get their commission from banks. Yet they are still conning us.”

Worse is the case for rural customers who need to spend money to come to Kashinagar to be able to reach the bank and after that cough up hefty commissions to be able to withdraw money.  All this happens while the kiosk banks supposed to serve in their localities instead stay immobile in townships with their staff making illegal commissions.

The inhabitants here urged the bank authorities to keep cash in their respective ATMs and shift the mini bank facilities back to rural areas.

 

PNN

 

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