Financial services company, HDFC, ICICI, and AXIS bank have announced that they are resuming levy on cash transactions starting March 2. The banks have announced that they will charge customers Rs 150 on cash deposits and cash withdrawals per transactions after four free cash transactions.
The rule is applicable for all the saving bank account holders and salary accounts. “The bank would also cap the third party cash transactions at Rs 25,000 per day, while cash handling charges would be withdrawn effective today,” a circular released by HDFC said. It must be noted that these charges are not applicable for transactions through ATMs.
A number of people are considering the move a bid to promote digital payments. However, the banks have made it clear that you will not be charged any fee on cash deposits on basic no-frills account. The bank would also cap the third party cash transactions at Rs 25,000 per day.
However, it is not yet clear whether the public sector banks are also going to levy charge on cash transactions or not. Meanwhile, the Government on March 1 notified the law under which possession of more than ten old Rs 500 and Rs 1,000 notes is punishable under the law. Not only this, those found guilty of owning the scrapped notes will be liable to pay a fine of at least Rs 10,000.
Prime Minister Narendra Modi in a televised address on 8 November shocked everyone when he announced that the government was doing away with high valued notes of Rs 500 and Rs 1000. Fresh Rs 500 and Rs 2000 notes were introduced to replace and meet the demand for Rs 500 and Rs 1000 notes. Prime Minister had affirmed that the move was being undertaken to fight the black money menace.