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Here's the reason banks are charging you for cash transactions

Given the costs involved in catering to customers at a branch and the fact that customers moving back to cash transactions after remonetisation, bankers want to disincentivise cash services and push consumers into using digital banking.

March 05, 2017 / 12:02 PM IST
Four months after the government enforced a note ban to crack down on black money and move towards a less-cash economy, top private banks including HDFC Bank, ICICI Bank and Axis Bank have reinstated their charges - a minimum of Rs 150 - on cash transactions above a certain limit.

Given the costs involved in catering to customers at a branch and the fact that customers moving back to cash transactions after remonetisation, bankers want to disincentivise cash services and push consumers into using digital banking.

Bankers are now charging customers who prefer to visit the bank branch regularly to withdraw or deposit cash.

Starting March 1, 2017, HDFC Bank, will charge you a minimum of Rs 150 in case you carry out more than four cash transactions (withdrawals as well as deposits) a month in your home branch. In the case of Axis Bank and ICICI Bank, the charge has been in effect from early January 2017, when it was re-introduced. While ICICI Bank and HDFC Bank allow the first four transactions to be free, in case of Axis Bank the limit is set at five transactions.

State Bank of India customers are allowed three cash deposits for free and will be charging Rs 50  (plus tax) beyond four transactions, while four cash withdrawals are free and will be charged Rs 5 beyond that.