Private sector banks including HDFC, ICICI and Axis have announced to charge INR 150 per cash transaction after the quota of 4 free cash transactions at branches is over. This comes at a time when government is trying to promote digital payments across the segments. However, the initial reaction of users on social media wasn’t a positive one, with users slamming the decision on Twitter.
HDFC Bank was the first one to announce the move. According to the announcement, there will only be 4 cash transactions allowed over the counter, be it deposit or withdrawal. After first 4 transactions, the bank will charge INR 150 per transaction. This is applicable to all the savings and salary accounts in HDFC Bank. Earlier, HDFC bank allowed 5 free transaction and charged INR 100 once the quota of free transaction was over.
According to new set of rules, which came in affect from 1st of march, HDFC bank customers can withdraw or deposit a total of INR 25,000 per day without any charges. However, after exceeding 25,000 rupees in a day, they will be charges INR 5 per 1000 or INR 150, whichever is higher.
ICICI bank, which happens to be the biggest private sector bank in India, also reintroduced the charges on similar lines as of HDFC Bank. ICICI will now charge INR 5 per 1000 or INR 150 per transaction, whichever is higher. The third party limit allowed without attracting any charges is INR 50,000.