Bank service charges create confusion
View(s):Bank charges on services for customers have become unbearable to them with confusion over the actual amount stipulated to impose via the Financial Transaction Levy (FTL) introduced by the previous regime, a large number of customers have complained.
They brought to the notice of the Finance Ministry that some banks are charging Rs.15 for every cash transactions up to Rs. 200.000 and at least one bank is in the practice of levying Rs.50 per financial transaction over the counter.
However, according to a senior treasury official, this Rs.15 levy for every cash transaction up to Rs 200.000 may have been the flat rate imposed by certain banks combining the Financial Transaction Levy and the Repayment Debt Levy proposed in 2017 and 2018 budgets.
He noted that the Ministry cannot control such actions as the financial institutions used to adopt various methods of passing such costs to customers.
There was no guideline issued by the Central Bank to licensed banks and financial institutions to implement these budget proposals at that time, informed sources said.
When the Business Times inquired into this matter with several bank heads they refused to comment and the senior officials of the Bank of Ceylon, People’s Bank, DFCC and National Savings Bank said that they are not levying these financial transaction charges.
In the 2017 Budget presented by then Finance Minister Ravi Karunanayake, a new Financial Transaction Levy of Rs.5 for every Rs. 10,000 cash transaction was proposed, including Easy Cash by banks and other financial institutions.
This levy was proposed as a contribution for social development and in addition the banks were directed to impose a 2 percent fee on cash transactions above Rs.5 million to discourage cash transactions and promote digital banking.