HDFC, ICICI, Axis banks to charge Rs 150 after 4 free transactions a month
The Reserve Bank of India had earlier announced that current withdrawal limits which were announced after demonetisation of high-value currency notes from the bank accounts will seize to exist March 13, 2017, onwards.
In a bid to further push digital payments, Banks including HDFC Bank, ICICI Bank and Axis Bank have re-introduced the charges on cash deposits and withdrawals beyond 4 free transactions a month.
The order effective from Wednesday mentions that minimum charge would be Rs 150 plus taxes and cess, in a month. The Reserve Bank of India had earlier announced that current withdrawal limits which were announced after demonetisation of high-value currency notes from the bank accounts will seize to exist March 13, 2017, onwards.
In a circular on Wednesday, HDFC bank said that the bank would also cap the third party cash transactions at Rs 25,000 per day, while cash handling charges would be withdrawn effective today. For the basic no-frills accounts, maximum four cash withdrawals would continue to remain free and there would be no fees for cash deposits.
At the home branch of HDFC Bank, if the cumulative cash transactions (deposit/withdrawal) exceed Rs. 2 lakh, a transaction charge of Rs. 5 per thousand or Rs. 150 (plus taxes and cess) whichever is higher will be levied.
From a non-home branch, customers can deposit/withdraw up to Rs. 25,000 per day without any charge but any deposit/withdrawal from a non-home branch above Rs. 25,000 will attract the charge of Rs. 5 per thousand or Rs. 150 (plus taxes and cess) whichever is higher.
For third-party cash transactions, the bank will now accept only up to Rs. 25,000 per day with a charge of Rs. 150 (plus taxes and cess). Transactions above Rs. 25,000 will not be allowed.
For senior citizens and minor accounts, the limit of Rs. 25,000 per day will be applicable but the accounts will not be charged.
In the case of ICICI Bank, the charges 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.
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. The third party limit would be Rs 50,000 per day.
For non-home branches, ICICI Bank would not charge anything for first cash withdrawal of a calendar month and Rs 5 per thousand rupees thereafter subject to a minimum of Rs 150.
For anywhere cash deposit, ICICI Bank would charge Rs 5 per thousand rupees (subject to a minimum of 150) at branches, while deposit at cash acceptance machine would be free of charge for the first cash deposit of a calendar month and Rs 5 per thousand thereafter. ATM intercharge charges have also been re-introduced.
At Axis Bank, the first five transactions or Rs 10 lakhs of cash deposits or withdrawals would be free and charged at Rs 5 per thousand rupees or Rs 150, whichever is higher.
However, there have been no details available whether the public sector banks have also begun imposing such charges.