India’s leading private banks said on Wednesday they will charge a minimum of Rs 150 for cash deposits and withdrawals after four free transactions in a month, reviving charges that were kept in abeyance briefly after the government scrapped high-value notes in November.
HDFC, ICICI and Axis banks will calculate the fee – aimed at reducing cash dealings – at the rate of Rs 5 for every Rs 1,000 transacted or Rs 150, whichever is lower.
HDFC and ICICI sources said the fees will be applicable to transactions outside of home branches. Both banks define home branch differently; HDFC defines it as the branch where an account was opened while ICICI defines it as any branch within the city of the account.
“The bank is restoring the practice that existed before November 8 (when demonetisation was announced). This is applicable to bank branches since cash supply is easing,” an Axis spokesperson said.
The charges, introduced in July last year in the case of ICICI, resumed from January 1 though the free transactions varied from four to five between banks.
Sources say the three banks will now start levying the fee from the fifth transaction onwards. The officials clarified that this charge is applicable on basic savings accounts holders, and ‘most salary account holders and privileged customers are exempt’.
