HDFC Bank, ICICI Bank and Axis Bank have started charging a minimum amount of Rs 150

New Delhi, Private Banks: Leading banks in India like The HDFC Bank, ICICI Bank and Axis Bank have started charging a minimum amount of Rs 150 per transaction for cash deposits and withdrawals after four free transactions in a month.

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

The aim is seen as a move to further make the public use of online transaction and card transaction instead of cash transaction. Definitely many people will move over to card and online transaction after this move.

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

The central bank had introduced 'no-frills' accounts in 2005 to provide basic banking facilities to poor and promote financial inclusion. The accounts could be maintained without or with very low minimum balance.Aug 10, 2012

The banks HDFC, ICICI and Axis will calculate the fee at the rate of Rs 5 for every Rs 1,000 transacted or Rs 150, whichever is lower.

According to details on ICICI Bank website, there will be no charge for first four transactions a month in home branch while Rs 5 per thousand rupees would be charged thereafter subject to a minimum of Rs 150 in the same month.

ICICI Banks for the cash deposit anywhere would charge Rs 5 per thousand rupees (subject to a minimum of 150) at branches. Deposit at Cash Acceptance Machine would be free of charge for first cash deposit of a calendar month and Rs 5 per thousand after that.

For ICICI Bank, the charges would be same as they were before the demonetisation move announced on November 8, while for other banks there is an increase in such fees in case of some others.

ATM interchange charges have also been changed.

Axis Bank: the first five transactions or Rs 10 lakhs, cash deposits or withdrawals would be free and charged at Rs 5 per thousand rupees or Rs 150, whichever is higher.

The bank would also fix the third party cash transactions at Rs 25,000 per day limit, while cash handling charges would be withdrawn effective today, the circular said.

The Banks would start charging from 5th transaction onwards and this is applicable to Basic savings, salary account holders. However privileged customers are exempt.

It is not yet confirmed that the public sector banks like the SBI will also begun imposing such charges as no notification yet has been issued by them.

About The Author

Pravin Pathak is an Indian fact-checker and news writer, writing news for Ayupp since 2014.

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