Pay Rs 150 on every fifth transaction from March 1, says HDFC, ICICI, Axis bank

After a one-day strike, a formidable respite has finally been announced by and for the banks.

On Wednesday, India’s leading private banks said they will charge a minimum of Rs 150 for cash deposits and withdrawals after four free transactions in a month.

The major objective of posing a strike was to compensate the bank officials who worked overtime after the announcement of terminating use of high-value currency notes, popularly called as Demonetisation.

After a day of the strike, the banks manifested their demands in the form of extra charge after a certain number of deposits and withdrawals.

In order to reduce cash dealings, private  banks like HDFC, ICICI and Axis banks will calculate the fee at the rate of Rs 5 / every Rs 1,000 transacted or Rs 150, whichever is lower.

HDFC and ICICI spokesperson spelled reliefs for the masses, who is subjected to shock therapies one after another. Sources said HDFC and ICICI will not levy any extra charges on transactions in Home Branch. Extra charges will only be levied on transactions outside of home branches.

However, the point to be noted here is the varying definition which these two banks have to offer:

As per HDFC, Home branch is where the account was opened. However, ICICI defines it as any branch within the city (E.g: Jaipur, Bombay, etc.) of the account.

Many people have ditched the manual and traditional systems of withdrawing and depositing money. Operating ATM’s and transacting through online means is a trend everybody is now abreast of. Most of the public is now waiting to hear the final word on charges applicable on ATM withdrawals (if any).

Let’s put it clearly for better understanding:

 HDFC Bank:

 A transaction of upto Rs 25,000 from a non-home branch (any branch except where you opened) won’t cost you anything.

Any transaction above Rs 25,000 will be charged Rs 5 per thousand or a minimal amount of Rs 150. The tax and cess will be applicable on this amount.

ICICI  Bank:

 There will be no charge for the first four transactions a month in the home branch, 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.

For non-home branches, ICICI Bank would not charge anything for the first cash withdrawal of a calendar month and Rs 5 per thousand rupees thereafter subject to a minimum of Rs 150.

AXIS Bank:

At Axis Bank, the first five transactions or Rs 10 lakhs of cash deposits or withdrawals would be free and charged at Rs 5 per thousand rupees or Rs 150, whichever is higher.

The three leading private banks will levy a fees from the fifth transaction onwards. However, most salary accounts and privileged customers will be exempt from this charge. Only basic saving account holders will be subject to this fee.

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