Things for common people haven’t been settled even after 4 months of Demonetization. Private Banks like HDFC, ICICI, AXIS etc will now charge Rs.150 beyond 4 cash transactions per month. From 5th transaction, the customers will have to pay Rs.150 excluding taxes and cess. The new act is in action from 1st March 2017.
Previously, Reserve Bank of India (RBI) have announced that current withdrawal limit of the higher value of currency notes from the bank accounts post demonetisation will extinct from March 13, 2017.
According to the New Rule:
- Only 4 free cash transaction per month which applies to both Deposit and Withdrawal.
- Cash transaction up to Rs. 2 Lakhs within the home branches are free. Beyond Rs. 2 Lakhs, Rs. 5/- will be charged for every thousand rupees.
- Third party Cash transaction will now only be available to a limit of Rs.25,000 per day. This transaction will also cost Rs.150 extra plus taxes and cess.
- The rule of Rs.25,000 will also apply to customers like senior citizens, children/minor accounts but the extra charges will be removed.
- For non-home branches, ICICI Bank will charge nothing for first withdrawal of the month.
- At Axis, first 5 transactions or Rs 10 lakhs of cash deposits or withdrawals will be free.
However, the rules for ATM withdrawals haven’t been changed. Five withdrawals from the home bank are free. Later, every sixth transaction will be charge Rs. 20/-. Likewise, first three transactions for other banks ATMs are free.
This may be another step taken by Government to encourage less cash transaction and comply with online banking services. This will help to sweep out Black money from the Country. Only time will tell how the public will react to this new act, as there were lots of issues raised on demonetization and Union Budget,2017. Read more RBI news.