ALL YOU NEED TO KNOW ABOUT NEW BANKING REGULATIONS
Private banks will charge a minimum of `150 for cash deposits and withdrawals at branches after four free transactions in a month.
HDFC, ICICI AND AXIS WILL CALCULATE THE FEE AT THE RATE OF `5 FOR EVERY `1,000 TRANSACTED OR `150, WHICHEVER IS HIGHER.
HDFC There are four free transactions. `150 plus taxes and cess will be charged from the fifth transaction onwards. Withdrawal and deposit up to `2 lakh is allowed at home branches, with transactions above this limit being chargeable. HDFC defines home branch as where an account was opened.
Who does this impact?
The transaction charge is applicable on all basic savings and salary accounts. Prime, Classic, Preferred, Imperia or any other managed programme customers are exempt.
What was rule before March 1, 2017?
A fee of `100 was charged on the sixth cash transaction onwards till March 1, 2017.
ICICI There are four free transactions and a levy of `150 will be applicable from the fifth transaction onwards. The charge is applicable only on cash transactions at non-home branches of ICICI. ICICI defines it as all the branches in the city where an account was opened.
Who does this impact?
This levy will be charged on customers with basic savings accounts, salary accounts and ‘privileged’ customers are exempt.
What was rule before March 1, 2017?
The transaction fee resumed from January 1, 2017, after four free transactions. There has been no change in ICICI.
AXIS BANK A charge of `5 per thousand or `150 whichever is higher will be levied from the fifth cash transaction onwards on savings accounts. Axis Bank has clarified that it does not differentiate between home and non-home branches.
Who does this impact?
Salary accounts and ‘privileged’ customers are exempt from the transaction fees.
What was rule before March 1, 2017?
There has been no change in the transaction fee structure for Axis Bank. The fee is kept in abeyance between November 3 and December 31, 2016 and was resumed from January 1, 2017.