Banks are set for heavy burden in case they are directed to credit interest on savings bank account to customer on quarterly basis by Reserve Bank of India.
Bankers feel that already having to increase interest on savings bank account to 4% along with daily accruing of interest on the same, the customer is already getting a lot of benefits.
Also they say that the customer is allowed 5 free transactions from different bank ATMs every month along with free remittance services.
"We have to recover the cost of investment in technology. If we are asked to credit interest at quarterly or shorter intervals into savings bank deposits our cost of funds will go up further. We will then be forced to withdraw some of the freebies," said a top banker attending the post policy review meeting.