Banks urged to review charges on cash transactions, reconsider minimum balance penalty

Sources in the government said the banks, including private banks like HDFC and ICICI, have been urged to review the charges on cash transactions and ATM withdrawals above a certain limit.

The government has asked the banks to reconsider their decision to charge customers for cash transactions. It has also asked the state-run State Bank of India to roll back its decision to penalise account holders not maintaining a minimum balance from April 1 onwards.

Sources in the government said the banks, including private banks like HDFC and ICICI, have been urged to review the charges on cash transactions and ATM withdrawals above a certain limit.

The banks had recently announced that they will levy fees of Rs 150 on deposit or withdrawal of cash from the savings accounts at bank branches beyond four to five times in a month.

The SBI had also made the maintenance of Rs 5000 mandatory for accounts in metropolitan areas, Rs 3000 in urban areas, Rs 2000 in semi-urban areas and Rs 1000 in rural areas.

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SBI will penalise you for keeping low balance in account; ATM charges revised

HDFC, ICICI, Axis banks will now charge you Rs 150 after 4 free transactions a month