Effective Wednesday, several banks like ICICI Bank and HDFC banks will start charging customers a minimum fee. After four free transactions in a month, the customer will be charged the amount of Rs. 150 for each transaction thereafter. This includes the cash deposits as well as cash withdrawals too. Moreover, this not only applies to the savings bank accounts but also all salary accounts from today. The private sector bank HDFC stated the same in a circular.
There are other changes too like capping third party cash transactions Rs. 25,000 a day. The circular added that some charges including cash handling will be withdrawn from today. Some see this new move by the banks in support of the digital payments drive. Some sections see the banks’ move aimed to discourage cash transactions.
HDFC, ICICI, Axis Banks to Charge Fee of Rs 150 after First Four Free Transactions
In a month the customer can make up to four maximum cash withdrawals for free. After this, he or she is charged a fee of Rs. 150 for each transaction. However, for the ICICI Bank, the charges REMAIN same as before the demonetization announced on November 8. As per the ICICI Bank website, the first four transactions a month in ITS home branch ARE FREE. THEREAFTER, FOR EACH Rs. 1000 withdrawal a fee of Rs. 5 is applicable. This is subject to a minimum Rs. 150 in the same month. The third party limit would be Rs 50,000 per day. However, ICICI Bank does not charge a fee for the first cash withdrawal of a calendar month for non-home branches. There is a charge of Rs 5 per Rs. 1000 thereafter subject to a minimum of Rs 150. Details are listed on the ICICI Bank website.
There are other charges like ATM interchange that are re-introduced. The first five transactions or Rs 10 lakhs of cash deposits or withdrawals would be free at Axis ATMS. A charge of Rs 5 per Rs. 1000 or Rs 150, whichever is higher is then applicable. As of now, it is ascertained about changes in charges from the private sector. It is yet to be ascertained if public sector banks will also impose such fees or charges.