Your golf towel is made with a hole in the middle and no little hole in the corner for the ring to go in What is the hole for and how do you keep the towel on your bag?

There are certain types of towel which have a loop in the middle instead of a hole to attach to your bag. What you do with these is loop them over something like a club or umbrella and this will keep it inplace easily. Or you can simply place the towel in between your clubs, you would be surprised how well this stays in place.

Follow up:

For bags that have a towel ring, insert towel through ring and through towel hole in the middle, wallah! your done... Much easier then having to move the towel from club to club...