On Wednesday, Indian’s leading private companies revised their charges on cash deposits and withdrawals. Axis Bank, HDFC Bank, and ICICI Bank began charging an amount of Rs 150 per transaction for cash deposits and withdrawals beyond 4 free transactions in a month. The charges will be applied for both savings as well as salary accounts. And it has been started from 1st March 2017, Wednesday. The bank would also cap the third party cash transactions at Rs 25,000 per day, while cash handling charges will be withdrawn effective from Wednesday, the circular added. The actual charges will be Rs 5 for every Rs 1000 transaction or 150 whichever is higher. Maximum four cash withdrawals would continue to remain free and there would be no fees for 4 cash deposits also. The rule will be implemented only beyond that limit. And all these rules will be applicable for savings and salary accounts. Classic, Preferred, Prime and Imperia and other managed customers are exempt. Before 1st March 2017, there was no charge up to 5 transactions. Beyond that limit, a fee of Rs 100 was charged from the sixth cash transaction. ATM inter-transactional charges have not been re-introduced.
Actually, they aimed at minimizing cash transaction and further strengthening the digital payment, what Prime Minister Modi has said during the demonetization period. In the Budget speech, Finance Minister Arun Jaitley had imposed a barrier on cash transactions above three lakhs rupees, behind the agenda to move towards a cashless economy.
Almost all major private banks have reintroduced their charges and rules are also almost same but the style of deducting money is a little bit different for Axis bank, HDFC bank, and ICICI bank.
According to Axis Bank’s rule minimum charge will be Rs 5 per thousand or 150 whichever is higher, from the 5th transaction and it is same for both the home and non-home branch. Salary accounts are exempt from the transaction fee.
According to HDFC bank’s rule also, charges are the same as axis bank from 5th transaction it is applicable for both salary and savings accounts. At home branches, where an account was opened, up to 2 lakh transaction is allowed. Transactions above this limit are chargeable. There will be no charge for senior citizen and minors. Third party transaction above 25000 is not allowed according to HDFC’s new rule.
In the case of ICIC bank, third party limit will be up to Rs 50000 per day. In home branches, the rule is same for 4 transactions. Rs 5 per thousand or 150 whichever is higher, would be deducted from the 5th deposit/ withdrawal. ICICI Bank would not charge anything for first cash withdrawal in a month from non-home branches and after that Rs 5 per thousand rupees or Rs 150, will be charged. But for the cash deposit, one transaction is free anywhere only at cash acceptance machine otherwise it will be on a chargeable basis for the 1st deposit.
