Beware of your cash transactions at both banks and ATMs! Now you will end up paying minimum Rs 150 per transaction for cash deposits and withdrawals at banks beyond four free transactions in a month.
In a bid to encourage the Government-push for digital transaction, some private banks such as HDFC Bank, ICICI Bank and Axis Bank have started imposing a levy of Rs 5 per Rs 1,000 cash transaction or Rs 150, whichever is higher, from March 1. It is learnt that other banks, including public sector lenders, will follow suit soon.
Though largest lender SBI has not yet announced any new charges on cash transactions so far, it is expected to do so soon. However, two persons in the know said, “If customers are withdrawing money from non-SBI ATM, they will have to pay Rs 10 after three transactions. The charges will be effective from April 01, 2017. On cash withdrawals or deposits at bank branches, the charges will be levied after the decision from the headquarters.”
Similarly, leading public sector lender like PNB, Canara Bank, Bank of Baroda, Bank of India said they were not charging its customers for cash withdrawals but they are likely to follow suit soon.
When contacted a senior official in the SBI said, “We have not received any circular yet for the transaction charges. I think the current 5 cash transactions per month from ATM will remain same but customers may be charged if they go beyond 4-5 cash transactions per month. I expect our turn (charging cash transactions) will come soon in a week or so as other private banks have already implemented it from Wednesday.”
At present, customers can withdraw or deposit up to Rs 2 lakh from their savings or salary accounts through the home branch for one month. Transaction exceeding this amount will be charged with Rs 5 per Rs 1,000 or a minimum amount of Rs 150. Daily transaction in terms of non-home branches up to Rs 25,000 are non-chargeable. Senior citizens and children will not be charged any amount.
As per the HDFC Bank circular, the charges would apply to savings as well as salary accounts with effect from Wednesday. “The bank would also cap the third-party cash transactions at Rs 25,000 per day, while cash-handling charges would be withdrawn effective Wednesday,” the circular added.
When contacted, HDFC Bank official said, “The move aims at discouraging use of cash and promoting digital modes as envisioned by the Government.”
He added a section of media seemed to be mistaken our cash transaction fee announced by our bank. Clarifying the confusion spread all over, he said, “This is limited to transactions at branches only, while ATM charges remain unchanged in our bank.”
At present certain charges are already being levied by banks while doing cashless transactions through a credit or debit card.
For the basic no-frills bank accounts, maximum four cash withdrawals would continue to remain free and there would be no fees for cash deposits.
For Axis Bank, the ATM charges have also been re-introduced. The first five transactions or Rs 10 lakh of cash deposits or withdrawals would be free and charged at Rs 5 per Rs 1,000 or Rs 150, whichever is higher. An Axis Bank official said, “There has been no directive from the Government to the banks regarding levy of such charges. We are just promoting the digital move.”