HDFC Bank, ICICI and Axis start charging for cash transactions at ATMs, branches

Banks including HDFC Bank, ICICI Bank and Axis Bank on Wednesday started charging a minimum amount of ~150 per transaction for cash deposits and withdrawals beyond four free transactions in a month.

The charges would apply to savings as well as salary accounts effective Wednesday, HDFC Bank said in a circular. The bank would also cap the third-party cash transactions at ~25,000 per day, while cash-handling charges would be withdrawn effective Wednesday, the circular added.

The move was seen in some quarters as aimed at discouraging cash transactions and furthering the digital payment drive.

For the basic no-frills bank accounts, maximum four cash withdrawals would continue to remain free and there would be no fees for cash deposits.

In case of ICICI Bank, the charges are same as they were before the demonetisation move announced on November 8, while there is an increase in such fees in case of some others.

According to details on ICICI Bank website, there will be no charge for first four transactions a month in home branch while ~5 per thousand rupees would be charged thereafter subject to a minimum of ~150 in the same month. The third party limit would be ~50,000 per day.

For non-home branches, ICICI Bank would not charge anything for first cash withdrawal of a calendar month and ~5 per thousand rupees thereafter subject to a minimum of ~150. For anywhere cash deposit, ICICI Bank would charge ~5 per thousand rupees (subject to a minimum of 150) at branches, while deposit at ATMs would be free of charge for first cash deposit of a calendar month and ~5 per thousand thereafter.

ATM charges have also been re-introduced. At Axis Bank, the first five transactions or ~10 lakh of cash deposits or withdrawals would be free and charged at ~5 per thousand rupees or ~150, whichever is higher.