Days after Economic Affairs Secretary Shaktikanta Das said the process of remonetisation is almost complete, a few private sector banks including HDFC have started levying charges on cash transactions. The move is clearly to discourgae cash transactions.
The charges are, however, applicable only on over-the-counter transactions at banks. It will not be applicable on transactions at ATMs.
Currently, five withdrawals are allowed at your bank's ATMs. In case you withdraw from other banks' ATMs it is just 3. After that, a charge of Rs 20 is levied.
HDFC will now allow only four free transactions and after that it will charge you Rs 150 plus taxes and cess. The charges would apply to savings as well as salary accounts effective from March 1, HDFC Bank said in a circular. Before March 1, it used to charge a fee of Rs 100 on the sixth cash transaction.
The bank would also cap the third party cash transactions at Rs 25,000 per day, while cash handling charges would be withdrawn.
HDFC said that the withdrawal and deposit up to Rs 2 lakh is allowed at home branches, with transactions above this limit being chargeable. According to HDFC, home branch is where you open your account.
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 first cash deposit of a calendar month and Rs 5 per thousand thereafter.
The charges are applicable only on cash transactions at non-home branches of ICICI.
The charges are applicable on customers with basic savings accounts and salary accounts. 'Privileged' customers are exempt. ICICI banks' charges are same as they were before the demonetisation move announced on November 8.
Axis bank will charge Rs 5 per thousand or Rs 150 whichever is higher, and it is applicable only on saving accounts after four free transactions.
It has not made any changes for salary accounts holders and 'privileged' customers. Axis bank does not differentiate between home and non-home branches.