Public sector banks to hike charges: HDFC will levy Rs 150 after 4 transactions

Public sector banks to hike charges: HDFC will levy Rs 150 after 4 transactions

India's second largest private sector bank HDFC has released an updated list of charges to be imposed on transactions effective from March 1, 2017.

A possible move to push India's journey to a cashless economy, public sector banks have taken a major step towards transactions and charges imposed on them. As of March 1, 2017, public sector banks will impose transaction charges on cash withdrawals and transactions in the bank.

India's second largest private sector bank, HDFC released an updated list of rules for its consumers.

According to HDFC bank's new rule, consumers will only be able to transact cash (both withdrawal and deposit) four times a month. From the fifth transaction, consumers will have to pay Rs 150 as transaction charge. On top of that, there will be cess and ta additional.

While a transaction of Rs 25,000 from a non-home branch won't cost you a penny, anything above Rs 25,000 will be charged Rs 5 per thousand or a minimal amount of Rs 150 once and for all. The tax and cess will be applicable on this amount as well.

At a home branch, if the cumulative cash (deposit and withdrawal) exceed Rs 2 lakh, a transaction charge of Rs 5 per thousand rupees or Rs 150 (plus tax and cess) will be levied.

According to HDFC, there will be no charge or tax for minors and senior citizens up to an amount of Rs 25,000 per day.

Third party transactions above Rs 25,000 won't be allowed. Only a transaction up to Rs 25,000 with Rs 150 charge will be accepted.

However, the cash handling charges imposed after the note ban have been removed completely.

Source:IndiaToday