The private banks HDFC, ICICI, Axis Bank to charge Rs 150 after four free cash transactions in order to encourage cashless and digital payment drive.
New Delhi: India’s leading private banks HDFC, ICICI and Axis Bank said on Wednesday they will charge a minimum of Rs 150 for cash deposits and withdrawals beyond four free transactions in a month. The charges will be imposed on savings as well as salary accounts from Wednesday, HDFC said in a statement. The move was first taken by the HDFC Bank and it has been followed by other public sector and private banks across India. The main aim of this move is to encourage cashless and digital payment drive.
According to HDFC bank’s new rule, apart from paying an additional Rs 150 for the four fee transactions, consumers will have to pay cess and service tax additional.
If any consumer looking to withdraw money from a non-home branch of HDFC Bank, from the fifth monthly transaction the non-chargeable upper limit is set at Rs 25,000 per day. Anything above Rs 25,000 would charge of Rs 5 per thousand, subject to a minimum of Rs 150 including additional taxes and cess.
At a home branch, if the deposit and withdrawals exceed Rs 2 lakh, a transaction charge of Rs 5 per thousand rupees or Rs 150 (plus tax and cess) will be imposed.
According to HDFC, there will be no charge or tax for minors and senior citizens up to an amount of Rs 25,000 per day.
In the case of third party transactions above Rs, 25,000 won’t be allowed. Only a transaction up to Rs 25,000 with Rs 150 charge with additional taxes and cess.
In the case of ICICI Bank, the charges are the 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.
The ICICI Bank website says, there will be no charge for the first four transactions in a month. After the completion of first four transactions, Rs 5 per thousand would be charged subject to a minimum of Rs 150 in the same month. In the case of the third party, the limit would be Rs 50,000 per day.
For non-home branches, ICICI Bank will not charge for the first cash withdrawal after that the bank will charge Rs 5 per thousand rupees thereafter subject to a minimum of Rs 150.
For cash deposit anywhere, ICICI Bank would charge Rs 5 per thousand rupees thereafter subject to a minimum of 150 at branches, cash deposited through Cash Acceptance Machine would be free of charge for the first cash deposit and thereafter Rs 5 per thousand.
In the case of Axis Bank, the first five transactions or the cash deposit or withdrawals of Rs 10 lakhs would be free and thereafter charged at Rs 5 per thousand rupees subjected to a minimum of Rs 150.