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Budget’s Effects On Bank Deposits

by Vamsi Krishna
A man is depositing his money

In order to deal with the occurrences of deposits into bank accounts in an anonymous manner, the government in Budget 2019 has brought in reforms that help curb such happenings. Since the implementation of demonetization policy, there have been several occurrences of such above mentioned circumstances, wherein the banks have observed the cash deposits into many Jan Dhan bank accounts through anonymously.

In another situation, the Finance Minister of the Indian government has also mentioned that the government will always be ready to initiate actions that help account holders to empower themselves and take necessary action in finding the remedy for such above-mentioned circumstances. She further stated that the government will also implement reforms that aid in strengthening the governance of PSBs.

For instance, an account holder in the Axis bank may receive deposits of funds made by an anonymous person, without experiencing any hindrances, and there are no regulations overseeing or hindering such transactions.

The banks may not always be able to monitor the happenings of such transactions, as the deposits are quite lesser in number than withdrawals, which means that such monitoring of huge numbers will slow down the banking activities, thereby implying burden on the other banking activities.

On the other hand, there is a chance of where the deposits maybe are done by anonymous persons who have harmful intentions in their minds, which may bring upon the accountholders a misfortune. Such misfortune is not only harmful to the account holder who has received funds, but also to the bank in which the transaction has happened.

Henceforth, some segments in the society have considered the demonetization scheme to be harmful, not only to the account holders but also for the banking sector, where the transactions are destined to occur. Such an occurrence will overburden the banking authorities with the responsibilities of handling multiple misfortunes in multiple areas in society.

 

Read More: The Basics Of Bank Fixed Deposits Rates

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