HDFC, ICICI and other banks start charging Rs 150 after four free transactions a month

New Delhi: In a bid to discourage cash transactions, from March 1, customers carrying out financial transactions at HDFC, ICICI and certain other bank branches will have to pay a fee if the number of transactions exceed beyond four.

The private sector banks have notified their respective account holders of a transactional fee, which will be applicable on the fifth transaction in a month.

Earlier today, the banks announced that after an individual does four transactions, the fifth one will be subject to a fee, regardless of whether it is cash withdrawal or deposit. However, the new fee will not be applicable on ATM withdrawals. Banks have proposed that a fee of Rs. 150 will be added, along with service tax, in addition to a fee of Rs. 5 per 1000.The cap on transactions has been placed at Rs 2 lakh per month per account. Any transaction beyond this will be applicable for an extra charge.

"Four free cash transactions per month. Fifth transaction onwards Rs 150 per transaction (plus taxes and cess) would be levied," HDFC Bank said in a statement.

"At its home branch, HDFC bank has kept an upper limit of Rs 2 lakh per month per account while above that Rs 5 per Rs 1,000 or part thereof, subject to a minimum of Rs 150 (plus taxes and cess) will be levied," the statement said.

ICICI Bank has already been levying a similar fee since July last year on cash transactions beyond five.

"It is nil for the first four transactions in a month. Thereafter Rs 5 per Rs 1,000 or part thereof, subject to a minimum of Rs 150 in the same month. Maximum limit is nil for self but Rs 50,000 per day for third party," according to the list of ICICI Bank transaction charges. 

With Agency Inputs