BUSINESS

Banks To Levy Charges Of At Least ₹150 After Four Monthly Cash Transactions

These charges don't apply to ATMs.

02/03/2017 8:39 AM IST | Updated 02/03/2017 8:43 AM IST
anand purohit via Getty Images

NEW DELHI -- Some banks, including HDFC Bank, have begun charging a minimum amount of ₹150 per transaction for cash deposits and withdrawals beyond four free transactions in a month.

The new charges would apply to savings as well as salary accounts effective from Wednesday, leading private sector player HDFC Bank said in a circular.

The bank would also cap the third party cash transactions at ₹25,000 per day, while cash handling charges would be withdrawn effective today, the circular added.

In case of several banks, including ICICI Bank and Axis Bank, these charges came into effect early in January and are same as they were before the demonetisation move announced on November 8, while there is an increase in such fees in case of some others, including HDFC Bank, today onwards.

These charges are for cash transactions in the branches, and not through ATMs.

The move was seen in some quarters as aimed at discouraging cash transactions and furthering the digital payment drive.

For the basic no-frills accounts, maximum four cash withdrawals would continue to remain free and there would be no fees for cash deposits.

According to details on ICICI Bank website, there will be no charge for first four transactions a month at branches in home city while ₹5 per ₹1,000 would be charged thereafter subject to a minimum of ₹150 in the same month.

The third party limit would be ₹50,000 per day.

For non-home branches, ICICI Bank would not charge anything for first cash withdrawal of a calendar month and ₹5 per ₹1,000 thereafter subject to a minimum of ₹150.

For anywhere cash deposit, ICICI Bank would charge ₹5 per ₹1,000 (subject to a minimum of ₹150) at branches, while deposit at Cash Acceptance Machine would be free of charge for first cash deposit of a calendar month and ₹5 per ₹1,000 thereafter.

ATM intercharge charges have also been re-introduced.

At Axis Bank, the first five transactions or ₹10 lakh of cash deposits or withdrawals would be free and charged at ₹5 per ₹1,000 or ₹150, whichever is higher.

It could not be ascertained whether the public sector banks have also begun imposing such charges.

When contacted, a senior official said there has been no directive from the government to the banks regarding levy of such charges.

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