Axis, HDFC, ICICI to charge Rs. 150 after 4 cash transactions

India’s leading private banks stated that 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. 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. In case of several banks, including ICICI Bank and Axis BankBSE 1.28 %, these charges came into effect early in January and 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, including HDFC Bank, today onwards. 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.There was no clarity on whether the charges will be applicable to ATM withdrawals. These charges are for cash transactions in the branches, and not through ATMs. The move was seen in some quarters as aimed at discouraging cash transactions and furthering the digital payment drive.

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