Facebook post — 15 December 2016

facebook 15 December 2016

This is such a pathetically poor argument.

No ₹100 note is going to last 1,00,000 transactions. It's a piece of paper. Even a piece of gold wouldn't last that much handling. Every time that note needs replacement, it costs public money. Any time it is deposited into a bank or dispensed by an ATM, it costs money to be handled.

Also, nobody, absolutely nobody charges 2.5% transaction fees. Most interbank transfers and inter-wallet transfers are free. Card transactions cost 1.25% or less. Certain unique situations demand a higher transaction cost - usually when cash is involved. Ergo, dealing in cash costs institutions money.

3 comments

Subbramaniam RamamurthyNo photos of the boys. ? Don't be content with story-telling.
Nish AnkWhat also needs to be added is that the customer usually is not charged the transaction fees per se, but it is the merchant who needs to bear the cost. In case of online payments, the surcharge could be something like 0.75%. This would mean foregoing Rs 7.5 on a transaction of 1000 bucks. But this also means that the cash directly goes to the seller's account, which saves him/her all the hassle of collecting the cash and depositing in bank (unless one wants to evade taxes). And as you rightly pointed out, peer to peer transactions don't carry any surcharge. Hide
Nish AnkNish Ank · 9y · by authorWhat also needs to be added is that the customer usually is not charged the transaction fees per se, but it is the merchant who needs to bear the cost. In case of online payments, the surcharge could be something like 0.75%. This would mean foregoing Rs 7.5 on a transaction of 1000 bucks. But this also means that the cash directly goes to the seller's account, which saves him/her all the hassle of collecting the cash and depositing in bank (unless one wants to evade taxes). And as you rightly pointed out, peer to peer transactions don't carry any surcharge.LikeReplyH