Few Major Banks of India, including HDFC bank, have started charging the fee of Rs. 150 per transaction for cash deposits and withdrawals after four free transactions in a month.
These charges are applicable to both savings as well as salary accounts effective from Wednesday.
A circular stated that The Bank would also cap the third party cash transaction at Rs. 25,000 per day, while cash handling charges would be withdrawn effective Wednesday.
These charges came into effect early in January in some banks including ICICI Bank and Axis Bank.
The charges are valid for a cash transaction in the branches and not through ATMs.
The move was made with an aim to discourage cash transactions and furthering the digital payment drive.
For the basic no-frills accounts, maximum four cash withdrawals would continue to remain free and there would be no fees for cash deposits.
Details on ICICI Bank website states that there will be no charge for first four transactions a month at branches in home City while Rs. 5 per thousand rupees would be charged thereafter subject to a minimum of Rs 150 in the same month.
The third party limit would be Rs. 50,000 per day.