Few banks, including ICICI, Axis and HDFC, have decided to charge a penalty of minimum Rs 150 on cash withdrawals and deposit at bank branches after four free transactions.
As per reports, the move is aimed at discouraging cash transactions and furthering the digital payment drive.
Highlights of circulars/notices of these three banks
HDFC Bank: This leading private sector bank said that the bank would also cap the third party cash transactions at Rs 25000 per day.
Axis Bank: At Axis Bank, the first five transactions or Rs 10 lakhs of cash deposits or withdrawals would be free and charged at Rs 5 per thousand rupees or Rs 150, whichever is higher.
Prime Minister launched Digital India Week to spread awareness about Digital India Programme
ICICI Bank: The bank on its website said that there will be no charge for first four transactions a month in home branch. Thereafter, Rs 5 per thousand would be charged and this charge will be subject to a minimum of 150 rupees in the same month. The third party limit would be Rs 50000 per day.
In case of ICICI bank, for non-home branches after free transaction, the bank would charge Rs 5 per thousand rupees subject to a minimum of 150 rupees. For anywhere cash deposit, the Bank would charge Rs 5 per thousand rupees (subject to a minimum of 150) at branches, while at Cash Acceptance Machine deposit would be charged after first free transaction of a calendar month at Rs 5 per thousand rupees.
What about ATMs?
In case of ATMs, the rule remained unchanged, that is, five first withdrawals are free at ATMs of the bank of the account-holder. A charge of Rs 20 is levied from the sixth withdrawal onwards.
Three transactions are free for cash withdrawals from ATMs of other banks.