Cash Transaction Charges by Banks (SBI, PNB, HDFC,ICICI,Axis)
Are you among those who do frequent transactions? So all important banks like ICICI,HDFC and AXIS bank now starts charging minimum fees per transactions. People have to spend Rs 150 as fees to deposits and withdrawals. These charges are applicable for both (savings and salary)types of accounts.
Cash Transactions by Banks
|SBI||NA as of now|
|ICICI||Rs 150 after 4th Transaction Per month|
|PNB||Rs 150 after 4th Transaction Per month|
|HDFC||Rs 150 after 4th Transaction Per month|
|Axis||Rs 150 after 4th Transaction Per month|
These moves are being used as a means of promoting the process of handling money electronically. It is to keep people from being likely to use cash in their transactions. This in turn may help with improving upon how digital transactions are to be followed over time.
Is the Government Directing Them?
The banks that are responsible for managing all of these changes have stated that they are not being told to work with any of these transactions. They are simply going along with the plans that have been orchestrated under their general demands. Whether the government will actually create its own initiatives in terms of what it wants to charge for transactions is unclear. This is a key aspect of managing cash transactions that could directly impact the banking industry although nothing too extreme has been introduced or announced at this moment.
There are many rules that are to be utilized in the cash transactions offered. These are subject to change but many of these are universal along some of these larger banks. A few of them are designed for use by very specific banks as part of their operational plans:
- Third party cash transactions are to be limited at Rs. 25,000 per day. This is to control the sources where money is coming out of.
- Cash handling charges will be withdrawn on transactions. The total values of those charges will vary based on what is to be used in an account.
- Basic accounts will have up to four free cash transactions in a month. This is a consistent point that has been used at some bands even before the demonetization process began.
- Some specific totals may also be applied onto the transactions being handled. Rs. 5 will be charged per Rs. 1,000 involved in a cash-based transaction at ICICI Bank, for instance. This is in addition to the Rs. 150 minimum charge involved after going beyond four cash transactions in a month.
- ICICI will not charge anything at non-home branches for the first withdrawal of the month on an account. A deposit at a Cash Acceptance Machine will be free for the first time in a month and then Rs. 5 per thousand rupees spent after that.
- Axis Bank will offer the first five transactions or Rs. 10 lakhs of deposits and withdrawals for free. Rs. 5 will be charged per thousand rupees or Rs. 150 depending on which is the higher amount on a transaction.
It is uncertain as to whether additional banks are going to add their own specific fees. The potential to get added fees could be strong depending on what is being used at a given time. This especially could make a difference with regards to competition as some banks might aim to promote their services as having fewer fees than others.
The greatest concern is that there are some addition fees that might come about in the future that the government imposes. All banks would have to cover those if necessary although it is debatable as to whether or not this is going to be incorporated in the process of handling money in any form.
What About the Public Sector?
It is unclear at this moment as to whether the public sector banks around India will start adding charges of their own. The government has not issued any specific directive as to what can be handled. This means that there will be strong limits and rules on getting money handled that will vary by each bank. Customers are encouraged to check on what terms are involved with their banks to see what is available.
The public sector does have its own freedom for adding additional fees. Some incentives may also be provided to people who use cashless transactions. However, given that much of the public prefers to work with incentives, there is a potential that many fees might be added as deterrents. Specifically, these would be added to deter people from trying to possibly spend more money on the transactions involved.
By offering these fees to customers, people will be encouraged to avoid getting cash-based transactions. All electronic and cashless transactions will not be subjected to these rules. The terms are varied by bank but the general goal of promoting the cashless economy of India is still prevalent in terms of how it is being run.
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