How will charges be levied by HDFC, Axis and ICICI banks?

Nick Sanchez
March 4, 2017

Things for common people haven't been settled even after 4 months of Demonetization. The Bank is engaged in providing a range of banking and financial services, including commercial banking, retail banking, project and corporate finance, working capital finance, insurance, venture capital and private equity, investment banking, broking and treasury products and services.

HDFC Bank, ICICI Bank and Axis Bank have started charging customers a minimum of Rs 150 for every cash transaction over and above a limit of free deposits and withdrawals per month.

The charges would apply to savings as well as salary accounts effective Wednesday (March 1), HDFC Bank said in a circular.

These charges are for cash transactions in the branches, and not through ATMs. This policy is introduced by private sector banks without considering the plight of the general customers. However, the new fee will not be applicable on ATM withdrawals. In case of third party, there is a limit of Rs 25,000 per day which will attract Rs 150 transaction fee with additional taxes and cess. For non-home branches, ICICI Bank would not charge anything for first cash withdrawal and Rs 5 per thousand rupees will be charged thereafter subjected to a minimum of Rs 150. Thereafter in the month, Rs 5 per thousand rupees or part thereof, subject to a minimum of Rs 150.

This may impact a section of customers, expecially senior citizens, who are yet to adapt to the internet banking or uncomfortable using ATMs.

Zero-balance and salary accounts have not been spared the four-transactions-per-month rule by private banks.

- After four free transactions, Rs. 5 will be charged per Rs. 1,000, upto a minimum of Rs. 150, at home branch.

Axis Bank said that five transactions or ₹10 lakh, whichever is earlier, for cash deposits or withdrawals are free. FIL Ltd raised its stake in HDFC Bank Limited by 7.0% in the second quarter. The Reserve Bank of India and commercial banks run up a total of Rs 21,000 crore (USD 3.5 billion) in currency operations costs annually. Five withdrawals from the home bank are free. Is this a general business decision, or is there a government push for this? Questioning the move, he further said, "Why these three banks are levying transaction fees when others don't?"

"The bank is restoring the practice that existed before November 8 (when demonetisation was announced)". Banks must stop punishing non-home branch clients.

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