Banks to raise Cash Transaction fees.

Banks are planning to raise transaction charges to discourage cash transactions after recent demonetization. 

“HDFC” ¬†stood first to impose such charges. In its latest announcement HDFC has made below change:

  • Free cash transaction reduced to 4 instead of 5
  • Charges of Rs150 or Rs5 per Rs1000
  • 3rd party cash transaction limit of 50,000/day reduced to Rs 25,000/day.
  • Non home branch cash transaction capped to Rs. 25000.
  • Home branch cash transaction capped to Rs2lacs.

For now all above restriction are on “Savings” and “Salary” accounts holders only. Banks may further extend this to current accounts.

  • ICICI Bank’s website shows a minimum charge of Rs 150 for more than four cash transactions (deposits and withdrawals) at home branches for savings accounts, similar to what HDFC Bank is proposing.
  • Axis Bank, the third largest private lender, charges Rs 150, or Rs 5 per thousand, for cash deposits of over Rs 1 lakh per month or from the fifth withdrawal at branches, its website said.

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