SME Times is powered by   
Search News
Just in:   • Adani Group to invest Rs 57,575 crore in Odisha  • 'Dollar Distancing' finally happening? Time for India to pitch Rupee as credible alternative: SBI Ecowrap  • 49% Indian startups now from tier 2, 3 cities: Jitendra Singh  • 'India ranks 3rd in global startup ecosystem & number of unicorns'  • LinkedIn lays off entire global events marketing team: Report 
Last updated: 03 Mar, 2017  

Rupee.9.Thmb.jpg Traders term banks' cash transaction fee as financial terrorism

Rupee.9.jpg
   Top Stories
» 49% Indian startups now from tier 2, 3 cities: Jitendra Singh
» 'India ranks 3rd in global startup ecosystem & number of unicorns'
» Tripura exported over 9K tonnes of pineapples in 2 years
» CPI inflation eases to 6.71% in July, IIP falls to 12.3%
» Rupee depreciates 12 paise to close at 79.64 against US dollar
SME Times News Bureau | 03 Mar, 2017
With the banks levying a fee for over four cash transactions at its branches, the Confederation of All India Traders (CAIT) on Thursday said the charges amounted to "financial terrorism".

"We strongly object levy of abnormal charges by banks on withdrawal of cash more than four times from saving bank acounts. Levy of such charges is a kind of financial terrorism on account holders. It can't be the way to encourage digital payments and putting the people at mercy point," CAIT General Secretary Praveen Khandelwal said.

"If digital payment is to be leveraged, the government must absorb transaction charges by subsidising the same to banks and effective incentive schemes must be announced to promote more and more digital payments in India," Khandelwal said.

In a bid to discourage cash transactions, banks like HDFC Bank, Axis Bank and ICICI Bank are levying a transaction fee of Rs 150 on deposit or withdrawal of cash from the savings accounts at bank branches beyond four to five times in a month.

While HDFC Bank brought the rule into effect only on March 1, Axis Bank implemented it from January 1, that is after the demonetisation period. ICICI Bank on the other hand says, the rules have not been changed and the Rs 150 fee has been applicable from July last year.

"There are 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.

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.

Axis Bank said that five transactions or Rs 10 lakh, whichever is earlier, for cash deposits or withdrawals are free. Beyond that Rs 5 per Rs Rs 1,000 or Rs 150, whichever is higher will be applicable for Axis Bank customers.

Public sector lender State Bank of India (SBI) said it charges nominal Rs 50 beyond three transactions in a month, though there is no upper limit on the amount of cash transacted.

"These charges are already existing. The same have been renewed for the next financial year from April 1. It is to deter the customers from visiting the branch but the charges are very nominal. As it is, the customer does not need to visit the branch often because we provide 10 free withdrawals in a month from ATMs," a SBI official told IANS.

Private lender YES Bank also follows in the footsteps of the SBI and has a nominal charge of Rs 50 beyond five transactions or Rs 5 lakh of deposits, whichever is earlier.

If the customer exceeds five transactions, he will be charged Rs 3 per Rs 1,000 with a minimum limit of Rs 50. YES Bank said it, on the other hand, encourages people to visit their branches.

"These charges are nominal and towards recovering our costs. We believe that customers coming to our branches will help us demonstrate our service capability and act as a stronger engagement tool. Hence, we encourage customers to visit and experience our branches," a YES Bank spokesperson told IANS.
 
Print the Page Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
66.20
64.50
UK Pound
87.50
84.65
Euro
78.25
75.65
Japanese Yen 58.85 56.85
As on 13 Aug, 2022
  Daily Poll
PM Modi's recent US visit to redefine India-US bilateral relations
 Yes
 No
 Can't say
  Commented Stories
» GIC Re's revenue from obligatory cession threatened(1)
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter