Banks to impose fee after four cash deposits, withdrawals

RSTV Bureau

Concessions given by the government in the last four months of demonetisation have come to an end. Starting today, all leading banks will be levying charges on cash transactions above a certain limit.

File Photo: Finance Minister Arun Jaitley addressing a press  conference  in New Delhi on November 12, 2016.

File Photo: Finance Minister Arun Jaitley addressing a press conference in New Delhi on November 12, 2016.

HDFC bank has issued a notification to its customers that they will be levying cash transaction charge. Only four cash transaction cumulatively, that is deposit and withdrawal, will be free and subsequently, the customers will have to shell out a minimal fee of Rs 5 or Rs 150 per Rs 1000 transaction depending on the amount.

So if you are an HDFC customer, you can withdraw or deposit total Rs 2 lakh rupees per month per account without any transaction fee. For the non-home branch, the limit is up to Rs 25,000 per day, beyond which charges apply.

ICICI bank is also planning to implement the same rider. Every fifth transaction, for cash withdrawal and deposit cumulatively, will be charged with Rs 150 or Rs 5 per Rs 1000. The bank has not specified any maximum amount limit.

Interestingly, Finance Minister Arun Jaitley has already put a cap of Rs 3 lakh for a cash transaction in the recent budget.

The third bank in the line is Axis Bank that has given an extra cash transaction limit– up to five cash transactions or Rs 10 lakh transaction will be free, post which same riders will be applied.

The banks claim that these curbs will boost digital economy, there is no denying that remonetisation is yet to be completed. Many banks are still reeling under cash crunch and this move will discourage cash withdrawals as well.