I suggest that MAS should ask the banks to increase the interest rate that they pay for savings and deposits, and to charge a fee for cash services (i.e. ATM withdrawals and cash deposits). This fee should allow the banks to recover their actual expenses in providing these cash services.
When the banks charge for the the actual cost of providing the cash services, it will encourage customers and merchants to move towards cashless payments - which are more efficient.
The merchants have to spend time to collect cash, give change, reconcile the cash collection against sales, and bank in the daily cash collections. These activities incur cost of manpower.
Many retailers have problem in employing retail assistants. By moving towards cashless payments, these retailers can overcome their labor shortages and reduce the labor costs. If the retailers have to incur high labor cost, they will have to pass the cost to customers through higher prices.
It will also overcome the problem that the retail assistants may steal some of the cash collection.
At present, the charges for cashless payments are high, i.e. 2% of transaction amounts or higher. It should be possible to reduce this charge to a more acceptable level, (say) 0.5%of transaction amount, subject to a minimum of $0.10.
If the charges for cash and cashless payments are rationalized and adjusted to a realistic level, retailers and customers will adopt a more efficient method of payment.
In Australia, some retailers refuse to accept cash and insist on card payment.
There is a fear that some customers do not have a bank account or are not able tp pay with a card payment.
They can pay with a transit card. All travelers now use a transit card to pay the fares on public transport. They are familiar with this form of payment. They can find it easy to use the transit card to pay for retail, food and beverage outlets.
We should move towards cashless card or mobile payments, instead of paying by cash.
We should take an active step towards cashless payment. It should start with asking the banks to impose a fee for cash services, so that the true cost of cash services is reflected in this form of payment.
http://www.tklcloud.com/Feedback/feedback2.aspx?id=5470
3 comments:
Problem or solution?
When it comes to plastic bags, the cashier had to ask every customer if they need plastic bags. And if they do, there will be a charge of 10 cents.
In short, wouldn't it be better to stick a poster at paying machine- Plastic bags 10 cents. If not needed to advise?
A poem found written on the wall in Mother Teresa's home for children in Calcutta:
“-People are often unreasonable, irrational, and self-centered. Forgive them anyway.
-If you are kind, people may accuse you of selfish, ulterior motives. Be kind anyway.
-If you are successful, you will win some unfaithful friends and some genuine enemies. Succeed anyway.
-If you are honest and sincere people may deceive you. Be honest and sincere anyway.
-What you spend years creating, others could destroy overnight. Create anyway.
-If you find serenity and happiness, some may be jealous. Be happy anyway.
-The good you do today, will often be forgotten. Do good anyway.
-Give the best you have, and it will never be enough. Give your best anyway.
-In the final analysis, it is between you and God. It was never between you and them anyway.”
PROFITS. PROFITS. PROFITS.
Forum: Long queues due to fewer manned bank branches.
Many DBS Bank/POSB branches with manned counter services have either closed or been replaced with ATM-only booths.
WE TOO HAVE HAD A VERY BAD EXPERIENCE WITH DBS. THOSE GOOD OLD DAYS WHERE SERVICE AND PEOPLE ARE NO LONGER THERE. DURING ONE OF OUR EPISODES, WITH THEM, WE FOUND HOW THEIR HANDLING WAS VERY UNPROFESSIONAL WHICH WAS A SHOCK COMING FROM A STATE BANK. WE CHECKED THE STAFFS CREDENTIALS ON THEIR LINKEDIN PROFILE AND WERE HORRIFIED AT THEIR QUALIFICATIONS AND EXPERIENCES. THE WRITTEN REPLY THEY GAVE WERE EITHER POORLY EXPRESSED OR STANDARDISED ANSWERS. DBS OPERATION IS ABOUT MAKING BIG BUCKS BY HIRING THE CHEAP. THE INDIAN CEO IS NOT EVEN WORTH 1 MILLION LET ALONE 10 MILLION ANNUALLY!!!!!!!!
Post a Comment