HDFC Bank, ICICI Bank and Axis Bank are levying a minimum charge of Rs 150 after four free cash transactions at their branches.
In a major push towards digital drive, leading private sector bank HDFC Bank on March 1 started charging a minimum amount of Rs 150 per transaction for cash deposits and withdrawals after four free transactions in a month, reported Wion News.
This means, every month an HDFC customer will only be able to exercise four cash withdrawal or deposit (cumulatively) transactions for free; after that, any transaction at its bank would be chargeable. The Rs 150 is exclusive of a cess and a tax which will be charged separately.
While HDFC Bank made this announcement on Wednesday, ICICI Bank and Axis Bank had imposed the fee early in January. The charges are only applicable for cash transaction in branches and not in ATMs.
The charges would apply to savings as well as salary accounts effective Wednesday, said HDFC Bank in a circular. The bank has also decided to cap third party cash transactions at Rs 25,000 per day while cash handling charges have been withdrawn.
For customers withdrawing money from the home branch, there is an upper limit of Rs 2 lakh per month per account. Above that, a transaction charge of Rs 5 per Rs 1000 or a part thereof, subject to a minimum of Rs 150 (plus taxes & cess) will be applicable, HDFC Bank said.
If customers are withdrawing money from a non-home HDFC Bank branch, from the fifth monthly transaction there is an upper limit for non-chargeable transactions is set at Rs 25,000 per day. Anything above that would attract a charge of Rs 5 per Rs 1000 or part thereof, subject to a minimum of Rs 150 (plus taxes & cess).
ICICI bank, on its website, stated that there will be no charge for the first four transactions in a month at branches in a customer's home city but Rs 5 per Rs 1000 will be charged thereafter, subject to a minimum charge of Rs 150 in the same month.
The bank, however, will not charge anything for first cash withdrawal at non-home branches during the month. However, a charge of Rs 5 per Rs 1000 will be levied thereafter, subject to a minimum of Rs 150. ICICI Bank has capped the third party limit at Rs 50,000 per day.
For cash deposit elsewhere, at branches the bank is charging Rs 5 per Rs 1000, subject to a minimum charge of Rs 150. However, deposit at cash acceptance machine would be free of charge for first cash deposit in the month and Rs 5 per thousand thereafter.
At Axis Bank, the first five transactions or Rs 10 lakh of cash deposits or withdrawals would be free and charged at Rs 5 per Rs 10000, or Rs 150, whichever is higher.
While private sector banks have announced their transaction fees, there is still no information whether the public sector banks will also impose new charges.
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