Several of India's leading private banks Wednesday, March 1 onwards, will charge a minimum of Rs 150 for cash deposits and withdrawals after four transactions per month. These charges had been stopped for a brief period during demonetisation when the Centre had scrapped the old Rs 500 and Rs 1,000 notes.
In an attempt to promote cashless transactions, HDFC Bank, ICICI Bank and Axis Bank have decided to implement the charges, while other banks are expected to implement them soon. In the case of HDFC Bank, customers with savings accounts will not have to pay any transaction amount for up to four transactions from the home branch (branch where the account was opened). However, customers will be required to pay Rs 150 for every additional transaction.
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According to the bank, customers can withdraw or deposit up to Rs 2 lakh from their savings or salary accounts through the home branch for a month. If transactions are more than the specified amount, customers will be charged Rs 5 per Rs 1,000 extra or a minimum amount of Rs 150. This limit was Rs 50,000 previously. If transactions are done through non-home branches, no charges apply on up to Rs 25,000. But if the amount is more, customers will be charged Rs 5 per Rs 1,000 extra or a minimum amount of Rs 150. However, children and senior citizens will not be charged any amount.
ICICI Bank states that customers will not have to pay any charge for the first four transactions per month through the home branch (any branch within the city where the account was opened). From the fifth transaction onwards, customers will be charged Rs 5 per Rs 1,000 subject to a minimum of Rs 150 in the same month, the Indian Express reported. There is a per day limit of Rs 50,000 on the transactions.
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As far as non-home branches are concerned, the ICICI Bank will not levy any charge for the first cash withdrawal of the month following which customers will be required to pay Rs 5 per Rs 1,000 subject to a minimum of Rs 150. The same rule applies to deposit at ATMs with Rs 5 per Rs 1,000 subject to a minimum of Rs 150 charged on cash deposits at any branch.
According to Axis Bank, customers are free to carry out transactions up to Rs 1 lakh from the home branch. Like the other two banks, Axis Bank will also charge Rs 5 per Rs 1000 or a minimum amount of Rs 150. An amount of Rs 150 will be charged for every additional transaction following the first four free transactions.
According to the Hindustan Times, officials said that the charge applies to only basic savings accounts holders, while "most salary account holders and privileged customers are exempt."