Modi was not joking about cashless transactions and making India go totally digital with its money. And banks have lent him full support in his endeavour.
Giving a major push to digitalisation and cashless transaction, the HDFC Bank, ICICI Bank and Axis Bank have today began charging a minimum of Rs 150 per transaction for deposits and withdrawals after four free transactions per month. Previously, the banks used to charge Rs 20 for deposit and withdrawal after four transactions.
In an official circular, HDFC Bank has stated that the charges which will be applied to both savings and salary accounts, effective from today. After the first four transactions, Rs 5 per Rs 1,000 would be charged thereafter subject to a minimum of Rs 150 in the same month.
ICICI Bank would charge Rs 5 per thousand rupees while the first ATM withdrawal of the calendar month would be free of charges.
As for Axis Bank, people will be allowed to transact up to Rs 1 lakh in a month in the home branch. However, for transactions over that amount, Rs 5 per Rs 1000 or a minimum amount of Rs 150 will be charged. The bank would also cap the third party cash transactions at Rs 25,000 per day, while cash handling charges would be withdrawn effective today, the circular added.
Public sector banks' reaction to this has not yet been ascertained. As of now, there has been no directive from the government to the banks regarding levy of such charges, a senior official said.
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