Letters to the editor Elementary lesson in banking

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: Janmejaya Sinha says he visited six banks in Mumbai’s banking district to encash traveller’s cheques of his friend from the US (‘Cheque this’, Aug 7). Two foreign banks declined to encash for two different reasons, but Sinha compliments them, saying they have done their homework on the economics of transactions well. Three PSU banks have also declined. The sixth one, perhaps a PSU bank, finally obliged Sinha’s friend. For PSU banks, Sinha has advice, that they are not aware that this is a source of non-interest income. Yet, it was a PSU bank that gained the goodwill of the customer. The lesson is, transactions should not be made from the profitability aspect alone.