Mumbai: Private sector lender HDFC Bank has decided to limit the number of free cash transactions to four in tune with the overall trend in the banking industry to discourage customers from accessing services at branches.
The move, according to a senior official, is aimed at encouraging customers to go digital as banks have to spend exorbitant amount for offering services through branches due to manpower cost.
Subsequent transactions above the prescribed limit of four would attract a fee of Rs 150 per transaction. The customer would also have to pay Rs 150 per tranaction, if the total value of transactions in a month exceeds Rs 2 lakh. The new charges will come into effect from March 1, 2017.
Already India’s largest lender State Bank of India and the country’s largest private sector lender ICICI Bank have limited the cash transactions.
According to information given on the SBI website, the bank allows savings bank customers to make three cash transactions — deposits or withdrawals — free of cost.
If a customer makes more transactions than this limit, he or she will have to pay Rs 57.25 (Rs 50 plus service tax) per transaction. ICICI Bank allows first four transactions in a month free of cost. Anything exceeding this, the bank would charge Rs 5 per Rs 1,000 or part thereof, subject to a minimum of Rs 150 in the same month.
Axis Bank, meanwhile allows customers to make first five transactions or Rs 10 lakhs whichever is earlier of cash deposits or withdrawals free of cost. PNB, however, allows cash deposits of upto Rs 2 lakh a day or cash withdrawal of Rs 1 lakh a day free of cost.