Reasonable ways to crack down on business spends/ money rotation

[mj01]

Devaluations have become a thing since 2023, and one major reason for that has been people rotating money or using personal credit cards for business spends. While some banks have taken some logical steps to prevent this (for example, capping utilities spends), we all know a bank that has gone bonkers by asking customers to provide proofs for its spends. Now in the second case, a common man also suffers for absolutely no fault.

What do you think would be some good ways for banks to crack down on such activities without hurting people with honest spends? Creating this thread for bank people to read and find positive ways of handling people who indulge in such activities instead of going full retard and discouraging/ hurting their authentic customer base with the unapologetic and ruthless devaluations.

 

[Shubham Yadav]

In India, one of the biggest problems is not money rotation or devaluation but the handling technique of banks to tackle this notorious issue

Generally instead of catching those who are responsible for this banks are just thinking of a solution and the solution is that

If there is poison in the branch then cutting off that particular branch bank is directly cutting the root of the branch resulting falling of that whole tree.

 

[Sudip]

https://www.technofino.in/community/threads/income-tax-notice-for-credit-card-spends.8701/page-11

read this one fo the many thread : folks doing business spends using credit card.

 

[mj01]

In India, one of the biggest problems is not money rotation or devaluation but the handling technique of banks to tackle this notorious issue

Generally instead of catching those who are responsible for this banks are just thinking of a solution and the solution is that

If there is poison in the branch then cutting off that particular branch bank is directly cutting the root of the branch resulting falling of that whole tree.

Sadly devaluation happens due to these guys because banks just don't seem to come up with innovative solutions. People here at TF should recommend some solutions 😄

 

[Shubham Yadav]

Sadly devaluation happens due to these guys because banks just don't seem to come up with innovative solutions. People here at TF should recommend some solutions 😄

Indeed agree with you but the problem is

People in the TF community are very reasonable and intelligent

If we provide innovative solutions then banks would do innovation devaluation

 

[Sudip]

blacklist such people at CIBIL level so that they're permanently debarred from getting a personal credit card.

 

[Sudip]

Sadly devaluation happens due to these guys because banks just don't seem to come up with innovative solutions. People here at TF should recommend some solutions 😄

Income tax notice for credit card spends..

folks, i think i am in trouble. I had a few questions and tried searching through the site and this thread but none really answered so please forgive if something is getting duplicated by me: i thought i was on top of it but a few spends later i realized I have ended up spending more than...

www.technofino.in

Huge yes! These folks are like cancer to the credit card world.

 

[Zacobite]

Devaluations have become a thing since 2023, and one major reason for that has been people rotating money or using personal credit cards for business spends. While some banks have taken some logical steps to prevent this (for example, capping utilities spends), we all know a bank that has gone bonkers by asking customers to provide proofs for its spends. Now in the second case, a common man also suffers for absolutely no fault.

What do you think would be some good ways for banks to crack down on such activities without hurting people with honest spends? Creating this thread for bank people to read and find positive ways of handling people who indulge in such activities instead of going full retard and discouraging/ hurting their authentic customer base with the unapologetic and ruthless devaluations.

best way is to flag off transactions monthly and ask for clarification.. make sending a response easy and customer friendly.. asking for 1 year old data is not feasible.. speak to a customer instead of faceless emails.. decide on blocking of points etc AFTER response received is not satisfactory.. they can also cross verify with the merchants directly and avoid inconvenience to customers..

 

[Vasuki]

Devaluations have become a thing since 2023, and one major reason for that has been people rotating money or using personal credit cards for business spends. While some banks have taken some logical steps to prevent this (for example, capping utilities spends), we all know a bank that has gone bonkers by asking customers to provide proofs for its spends. Now in the second case, a common man also suffers for absolutely no fault.

What do you think would be some good ways for banks to crack down on such activities without hurting people with honest spends? Creating this thread for bank people to read and find positive ways of handling people who indulge in such activities instead of going full retard and discouraging/ hurting their authentic customer base with the unapologetic and ruthless devaluations.

Those blaming rotaters for devaluation is like blaming farmers loan NPA for bad performance of banks.


If bank has certain points on certain things , people will use / exploit .
The number of cashback & reward is so small in bank terms that they can sustain for ever long they want .

As long as people using cc for business use
Anything in moderation is ok & always be used .
Don't business PPL buy car & show as business expenses to save tax ..
Smart people save

There is very less % of cc user in India and being informed one in that minute percentage is like a grain on Pandora box .
Bottom line is - due to global crisis banks & company are due funding . Hence cc is under looked ..
due to constant repo rate to curb inflation and Money supply in market rbi has stopped giving money to banks at cheap rates hence no major cash flow.

NPA problem is more or less solved

if you look at close in GDP number , exports are increasing but Internal demand was low..
hence you can feel in pinch in domestic market number too not just CC REWARDS

 

[Vasuki]

best way is to flag off transactions monthly and ask for clarification.. make sending a response easy and customer friendly.. asking for 1 year old data is not feasible.. speak to a customer instead of faceless emails.. decide on blocking of points etc AFTER response received is not satisfactory.. they can also cross verify with the merchants directly and avoid inconvenience to customers..

People use it for convenience not for being interrogation.
There is rule of law not dictatorship of banks to justify them our spends .
You saying because you think it's clean but one day if u come under radar and bank official come to ask where did u spend .u will feel everything in the stomach ..

Very dangerous precedent

 

[Zacobite]

People use it for convenience not for being interrogation.
There is rule of law not dictatorship of banks to justify them our spends .
You saying because you think it's clean but one day if u come under radar and bank official come to ask where did u spend .u will feel everything in the stomach ..

Very dangerous precedent

No.. like i said it is not illegal... its against their t&c that we sign ..So they can question and take action.. If bank official comes and asks.. then we need to respond... Convinience is fine.. so are the consequences..Our actions our responsibility.. Generalizing it won't help..what axis did was stupid bcoz it didn't use any logic.. was mass madness.. also my response is to the OP thread of what banks can do...

 

[mj01]

If bank has certain points on certain things , people will use / exploit .
The number of cashback & reward is so small in bank terms that they can sustain for ever long they want .

As long as people using cc for business use
Anything in moderation is ok & always be used .

How do we define moderation? Is 10L monthly spends on electricity bills moderate for someone reporting 5L annual income?

Also reward points in bank terms might be small for personal spends, but definitely NOT for business spends. If we are looking at someone spending 10 crores for business, a 3% return is 30L. Now, assume 100 such people, we are looking at 30 crores, which is not insignificant especially for smaller banks.

There is a reason banks started putting limits/ charges on utilities, and some banks went overboard with utilities charges, hurting honest people.

 

[Zacobite]

---

Those blaming rotaters for devaluation is like blaming farmers loan NPA for bad performance of banks.


If bank has certain points on certain things , people will use / exploit .
The number of cashback & reward is so small in bank terms that they can sustain for ever long they want .

As long as people using cc for business use
Anything in moderation is ok & always be used .
Don't business PPL buy car & show as business expenses to save tax ..
Smart people save

There is very less % of cc user in India and being informed one in that minute percentage is like a grain on Pandora box .
Bottom line is - due to global crisis banks & company are due funding . Hence cc is under looked ..
due to constant repo rate to curb inflation and Money supply in market rbi has stopped giving money to banks at cheap rates hence no major cash flow.

NPA problem is more or less solved

if you look at close in GDP number , exports are increasing but Internal demand was low..
hence you can feel in pinch in domestic market number too not just CC REWARDS

using a loophole and going against the terms are two different things.. nothing justfies that.. Aggressive rebuttal doesn't make it right.. using smartly basis t&c is not same as exploiting a product.. There are guidelines and need to be respected.. and when questioned can't use global economy as an excuse.. How banks do it is a problem as they are not using any logic and troubling genuine customers which is wrong..and penalising everyone with devaluation is also wrong.. they need better systems to identify anomalies and take suitable measures..

 

[Vasuki]

---

using a loophole and going against the terms are two different things.. nothing justfies that.. Aggressive rebuttal doesn't make it right.. using smartly basis t&c is not same as exploiting a product.. There are guidelines and need to be respected.. and when questioned can't use global economy as an excuse.. How banks do it is a problem as they are not using any logic and troubling genuine customers which is wrong..and penalising everyone with devaluation is also wrong.. they need better systems to identify anomalies and take suitable measures..

U r using devaluation & business expense of cc as 1:1

No they are not .
Devaluation is because bank want to do & not because gopal rotated 45 lakh from his cc ..or someone using Flipkart card to buy 18 lakh purchase..

Then why was lifestyle services got removed from reseve or magnus ..
Doesn't those PPL using meet and greet service as business expense or selling bogo movie tickets .

 

[Zacobite]

U r using devaluation & business expense of cc as 1:1

No they are not .
Devaluation is because bank want to do & not because gopal rotated 45 lakh from his cc ..or someone using Flipkart card to buy 18 lakh purchase..

Then why was lifestyle services got removed from reseve or magnus ..
Doesn't those PPL using meet and greet service as business expense or selling bogo movie tickets .

yes...finally it is a business not social service.. bait and then slaughter

 

[Vasuki]

yes...finally it is a business not social service.. bait and then slaughter

Eggxatly..
But new sun will rise soon ..ride the Waves of devaluation & revaluation in oscillation

 

[Vasuki]

There is a reason banks started putting limits/ charges on utilities, and some banks went overboard with utilities charges, hurting honest people.

In covid gov wanted us to spend more because of spending got lesser and lesser .

To protect individual bankruptcy banks made utility and rent payment lucrative..
Now none of it make sense hence withdraw

But what axis did is never gonna be justified in cc industry.

It's simply banks don't wann continue on these categories.

About business spend - people exploit get punished .some don't.

Bottom line is you are correct & INDIAN BANKS ARE DUMB

but rotaters are not to be blamed soley ..
Look at sbi cashnsck cards for now
Or rupay offer in dec- Feb ..

Sometimes banks promote hence more reward then they withdraw.
Like @Zacobite said
Bait and slaughter

 

[Maikalal Jaikishan]

I am not informed enough on the industry, but my thinking is that devaluation is basically reducing the privileges given to the rich so that the poor who get more basic cards with 1% CB etc can be allotted those benefits. I see it as a good thing if this is the case. If this is not the reason, then ignore this post.

 

[Vasuki]

I am not informed enough on the industry, but my thinking is that devaluation is basically reducing the privileges given to the rich so that the poor who get more basic cards with 1% CB etc can be allotted those benefits. I see it as a good thing if this is the case. If this is not the reason, then ignore this post.

We aren't communist country 😀😂😁
Banks are not for equality

 

[Maikalal Jaikishan]

We aren't communist country 😀😂😁

Indeed. The government isn't doing this. The banks if this is the reason they are doing it, are doing it to acquire more customers. That is capitalism, not communism.