Banks consider covid-19 an opportunity to make money

[AjithBtc]

In my country (India) the private and public banks have made several changes to the transaction fee and other fees associated with banking. Even the convenience fee on cash deposits through the machines have been increased on deposits made on unofficial timings. Ministry of finance stated no such fee increase have been made on public banks.

Government state issuing more and more loans to make good flow of money, but banks on the other side increase the charge on loan recast of upto 0.5% on entire loan value. Once again bps points have been raised which reflects on the interest percentage. Someway banks are making money out of covid-19 without thinking anything about people. This is where decentralization and cryptocurrency gets importance.

Source : Zee News

[fiulpro]

It's not an opportunity to make money , if they do make money they will only loose the existing value they have. Which means , no matter how much money they make , the value will degrade instead of reaching great heights.
The banks are self aware of this. But unfortunately it's the need of the hour and they have to somehow supply incentives , keep the cash flowing to ensure that economy doesn't drop. The problem is *when they over print money* , much like US , that is disastrous. Every country have their own certain set of values in which it's okay for them to print without loosing their economic value.

Banks are trying to take advantage of the situation by using this pandemic to increase the percentage they take on loans , this is not only shameful but also disastrous for normal people.

They is why use cryptocurrencies like : Bitcoins. We have literally no idea where the value of that bank note will end since this is havock.

(Plus : this should be moved to economy section of the forum , don't worry you don't have to delete it. )

[Husires]

We cannot judge the accuracy of this data, especially as it depends on traffic and is not necessarily true.
The most accurate thing we can find is to compare the platform data after reviewing all privacy policies.
The trading volumes that appear in binance need to be reviewed and scrutinized even though they are of no use.

[jackg]

Is this just one bank trying to do it? From the article it says ICICI put it through but another one rejected it after considering it. If the rest don't follow people mich just move from the first as long as there are enough machines.

Charging more for out of hours services seems very specific, are they worried there's going to be a bank run (also, this could be incentivising a mini one because people might pull out a month's worth of money instead of a week or a few days).

[jademaxxiss012]

The government or authority that has the mandate to control over these banks should be called out for this kind of abuse. We know that we are in pandemic and that government should always be after the welfare of the community unless they are only after their self interest. The government would rude and heartless if they will not get this problem solve or to be attended.

[Darker45]

With or without COVID-19 the banks will always squeeze their clients for money. COVID-19 comes, nothing has changed. As a matter of fact, they might have seen a golden opportunity out of it. People are running out cash. Many will probably be forced to jump into various kinds of loan opportunities offered by banks.

Apart from that, they must have increased their assets a lot when businesses and individuals defaulted on loans resulting from the economic impact of the pandemic. Assets and collaterals must have been liquidated because of it. It seems the banks have always the upper hand.

[Swopon]

I believe the government is for the people and decision if it has been made by official then it might have a good reason behind the people. If they give loans to people then the transaction can be increased more which is needed in this time. Because the pandemic breaks all the rules of our normal life. On the other hand, it is one kind of control over the banks by officials as well.

[Jating]

In my country banks are adding transaction fees wherein it was free prior to the pandemic. So just like any other businesses in the pandemic, somehow, somewhere this entities will need money to survived as well so as much as we have these banks putting fees now, I would say it's a business move and not totally an opportunity to make more money from people who have been direly affected by the pandemic.

So the best way to deal with it is that move your assets to crypto specially bitcoin so that you can have total control of your money, just saying.

[teosanru]

In my country (India) the private and public banks have made several changes to the transaction fee and other fees associated with banking. Even the convenience fee on cash deposits through the machines have been increased on deposits made on unofficial timings. Ministry of finance stated no such fee increase have been made on public banks.

Government state issuing more and more loans to make good flow of money, but banks on the other side increase the charge on loan recast of upto 0.5% on entire loan value. Once again bps points have been raised which reflects on the interest percentage. Someway banks are making money out of covid-19 without thinking anything about people. This is where decentralization and cryptocurrency gets importance.

Source : Zee News

I think this is pretty bad move by our government. Reason for this is that government themselves were the ones who advocated this idea of cashless economy themselves. They only motivated the people through campaigns to deposit money in banks and now bringing in such transaction fees on transactions is illogical as well as ironical. Well I don't think it would have any direct impact on usage of Cryptocurrencies because for in the country payment UPI system of India is pretty robust. It's quick and free so Cryptos won't be able to take lead on this.

[Reid]

I think this is pretty bad move by our government. Reason for this is that government themselves were the ones who advocated this idea of cashless economy themselves. They only motivated the people through campaigns to deposit money in banks and now bringing in such transaction fees on transactions is illogical as well as ironical. Well I don't think it would have any direct impact on usage of Cryptocurrencies because for in the country payment UPI system of India is pretty robust. It's quick and free so Cryptos won't be able to take lead on this.

Nice actual experience share.
I agree with it.
Even in different countries, cryptocurrencies are still not the answer.
Digital money is the top for now.
We all know they are also owned by banks or if not, they are the backbone of it (investors) and cash applications are just the faces.
Easier, faster, and to avoid contact with people.

This link had better details than the one posted but it was a week ago with the same content.

[DarkDays]

Every government is now thinking how can they expand the economy and incentive spending to help the economy grow. Banks have got it really bad in

the sense that now people are not spending as much, taking loans, mortgages etc as their employment is uncertain. SO to make up for a fraction of it, of

course they're going to do what they can to keep their business alive even if it means shifting the burden over to people. And this is what's happening

right now with the banks and the rates of borrowing they're offering. Rest assured though that if people don't borrow at this rate, they will sure need to

change that. Right now it is all down to people's actions. If the response is negative banks will have no choice but to revise what they offer, however, if

the response is positive then they'll stick to it. Ultimately, it will be for people to decide if this works for them or not.

Decentralized cryptocurrency, sure sounds more appropriate but people will still stay away from it because of the fear of not understanding it.

[jossiel]

That's part of business, big money didn't flow to them for the past several months. And in return to retrieve those possible loss that they've made, they have to do something.

The interest or increase in fee may look bad for the depositors and borrowers but that's how bank really works. They often charge even hidden fees that you are not aware of.

[Wexnident]

They are basically milking money from their citizens right at the moment when they are having much more difficult times compared to normal? Quite a shameless behavior if you ask me tbh. It's not like they're returning something to the public through this new law they imposed right? Or am I wrong? Cause I don't really know much about what's happening in India.

They should have rather minimized the fees more or made it free if they could but instead, did the opposite. Still it seems like only one bank so far has did so, since the other one that announced it soon withdrew the decision. I just hope the other banks don't follow suit with this kind of behavior tbh.

PS. Move to Economic board maybe? Not really suited for Bitcoin Discussion.

[AniviaBtc]

With or without COVID-19 the banks will always squeeze their clients for money. COVID-19 comes, nothing has changed. As a matter of fact, they might have seen a golden opportunity out of it. People are running out cash. Many will probably be forced to jump into various kinds of loan opportunities offered by banks.

And this is the number 1 reason why people are getting much poorer and suffer the most amidst Covid-19.

They can't handle their businesses properly in terms of inconvenience during lockdown or quarantine. Loaning is really a risky thing to do and you need a lot of confidence, courage, and positivity to grow the business that you are planning to make during this pandemic. You only have two options, make yourself suffer or help yourself become stable.

[teosanru]

I think this is pretty bad move by our government. Reason for this is that government themselves were the ones who advocated this idea of cashless economy themselves. They only motivated the people through campaigns to deposit money in banks and now bringing in such transaction fees on transactions is illogical as well as ironical. Well I don't think it would have any direct impact on usage of Cryptocurrencies because for in the country payment UPI system of India is pretty robust. It's quick and free so Cryptos won't be able to take lead on this.

Nice actual experience share.
I agree with it.
Even in different countries, cryptocurrencies are still not the answer.
Digital money is the top for now.
We all know they are also owned by banks or if not, they are the backbone of it (investors) and cash applications are just the faces.
Easier, faster, and to avoid contact with people.

This link had better details than the one posted but it was a week ago with the same content.

Oh the problem is this news channel which OP has quoted. It's a useless news channel which generally showcases only one sided pro government news. You would see many better blogs than ZeeNews. And yes this payments system of our country is owned and managed by our central Bank and consortium of banks themselves which makes it pretty Swift too. You even Don't have to do a separate KYC because it fetches your accounts directly linked to your number. Best part is that they have kept this API for third party apps too. Companies like Google and Amazon have their UPI Client applications for Indian users which connects them to this UPI and these applications are much better than the one made by Government so UPI for sure is best intra-national payment mode for our country.

[devil2man]

Banks in any part of the world are never at a loss regardless of time even now with possible lockdown there are always heavy taxes and hidden fee and management costs, the banks are always profitable, This is why we need to look for an alternative and perhaps move towards cryptocurrencies perhaps by making a card account with Bitcoin or other similar solutions

[solomine]

banks and cryptocurrencies must integrate. and the sooner this happens, the better for both areas. this should make it easier for you to buy and sell cryptocurrency. some steps have already been taken. there are payment cards that help this, for example, advcash and gekkard

[Dorodha]

Banks see Covid 19 as an opportunity to make money because everything is damaged due to the virus but many people are able to solve their financial problems by taking loans from banks. When unemployment rose and inflationary pressures eased the government made more money. Central banks have set interest rates at zero or almost zero and printed money due to the corona virus situation in which it will be delayed as full employment is reached. In some parts of the economy public financing will be restored once the crisis is over. Central banks will be forced to keep rates low to prevent further spending on debt services by the government budget.

[ethereumhunter]

I think the banks want to invite people to come to the banks again in this pandemic because the banks need to run the business. They need money too but not all people can go to the banks every day or week to make a transaction. It is hard for all people and all businesses, but if the banks can provide a free transaction cost, it will help people send money to others. Maybe the banks will give loans to people who need more money to survive with their business.

[peter0425]

the claim is not that clear how Banks really making money out of covid because all i know is the Corrupt government
are the one whos going to make money in regards to the help for the needed.
They are shortening the funds and keep some inside their pockets and that sucks since the help is badly needed.

Ofcourse this is perfect time for banks to make money and their main source of income is giving the loans and collecting the tax money which happens more when people don't have money and now people don't have money because they lost jobs, business due to covid 19 quarantine days.

If they do such now then for sure they will be Hunted in future when all this things are done
.