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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