After demonetisation, the government has been trying to discourage cash transaction in an effort to make economy cashless. The government is trying to indirectly force people of the country towards being cashless.

Banks including HDFC Bank, ICICI Bank and Axis Bank has began charging a minimum amount of Rs 150 per transaction for cash deposits and withdrawals beyond four free transactions in a month.

HDFC Bank said in a circular that the bank would cap the third party cash transactions at Rs 25,000 per day, while cash handling charges would be withdrawn.

ICICI Bank website says that, there will be no charge for the first four transactions in a month in home branch, while Rs 5 per thousand rupees would be charged thereafter subject to a minimum of Rs 150 in the same month. Third party limit would be Rs 50,000 per day.

Axis Bank states that, the first five transactions or Rs 10 lakhs of cash deposits or withdrawals would be free and charged at Rs 5 per thousand rupees or Rs 150, whichever is higher.

Karur Vysya Bank, City Union Bank and DCB Bank confirmed that they are not charging their customers for cash transactions before or after demonetisation.

K Venkataraman, CEO, Karur Vysya Bank, said, " All banks do a review in March-April of the charges they levy before the next financial year. So a bank increasing charges isn't necessarily significant."

By Premji