Promoting cashless transactions in the country, HDFC Bank, ICICI Bank and Axis Bank have started charging higher amount for cash deposits and withdrawals.
“Effective from March 1, cash transaction charges for savings and salary accounts are being revised,” HDFC Bank said in a statement on Tuesday.
“First four transactions would be free every month. 5th transaction onwards Rs.150 per transaction (plus taxes & cess) would be levied,” the statement added.
The bank also put a cap at Rs.25,000 per day on third-party cash transactions.
Meanwhile, on home branch transactions, the bank will allow deposits or withdrawals of up to Rs.2 lakh free of cost per day. Beyond Rs.2 lakh, customers will have to pay Rs.5 per Rs.1,000, or Rs.150 would be charged, whichever is higher.
For non-home branch customers, transaction beyond Rs.25,000 a day will be charged of Rs.5 per Rs.1,000, or Rs.150.
The ICICI Bank also follows almost the same rules. There is no charge for the first four transactions in a month in home branch while Rs.5 per Rs.1,000 are being charged thereafter.
In the case of Axis Bank, five non-home branch transactions are free, subject to a maximum per-day deposit of Rs.50,000.
For deposits higher than Rs.50,000 or the sixth transaction, Axis charges Rs.2.50 per Rs.1,000, or Rs.95 per transaction.
The charges of ICICI and Axis came into effect early in January this year.
However, India’s largest public sector bank, State Bank of India (SBI) has not announced any cash-transaction charges so far.
Besides,Union Finance Minister Arun Jaitley in his Union Budget 2017 has proposed penalty for cash transactions above Rs.3 lakh.