HDFC Bank, ICICI and Axis resume levy on cash transactions
- Author: Joanne Flowers Mar 02, 2017,
Mar 02, 2017, 11:31
The move was seen aimed at discouraging cash transactions and furthering the digital payment drive.
Three banks - HDFC, Axis and ICICI - have announced that they will levy charges of a minimum of Rs. 150 for cash transactions.
- ATM interchange charges, that had been taken off during demonetisation, have also been re-introduced. The bank has also taken another important step of reducing the number of its free transactions from five to four which is going to be a slight push for account holders of the bank.
Whatever be the case, a majority of people think that the steep increase in charges on cash transactions is unjustified and must be withdrawn.
Further, while transaction of Rs 25,000 from a non-home branch will not cost you anything, for any transaction above Rs 25,000 you will have to pay Rs 5 per thousand or a minimal amount of Rs 150 once. The Rs 150 is exclusive of a cess and a tax which will be charged separately. Transactions made in ATMs will not be levied these charges.
For example, if a customer withdraws Rs 2 lakh from an account in four transactions and goes for another fifth transaction of Rs 50,000 from the home branch, then the customer will have to pay charge of Rs 1,250.
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).
"Four free cash transactions per month". However, deposit at cash acceptance machine would be free of charge for first cash deposit in the month and Rs 5 per thousand thereafter.
Besides, Union Finance Minister Arun Jaitley in his Union Budget 2017 has proposed penalty for cash transactions above Rs.3 lakh. 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. For non-home branches, the free transactions are only Rs 25,000 after which fees set in at the same level.