- Date : 08/11/2020
- Read: 3 mins
Several banks will levy a convenience fee for cash deposits at ATM machines and withdrawals that exceed a prescribed limit.
Certain bank transactions will attract a convenience fee from November 2020. Customers who frequently deposit or withdraw cash at ATMs will see these changes affecting their wallets. The new rules vary from bank to bank.
ICICI Bank has stated it will charge a fee of Rs 50 for cash deposits by customers in their cash acceptor kiosks during non-business hours and bank holidays. This means customers will have to shell out the fee for every transaction they make after banks shut at 6 pm till they open at 8 am the next day. This rule applies to bank holidays as well.
The bank will also levy a convenience fee if the cash deposited by a customer exceeds Rs 10,000 in a month across all transactions. However, it said that the fee will not be applicable to Basic Savings Bank Deposit (BSBD) accounts, senior citizens’ accounts, Jan Dhan accounts, student accounts, and accounts held by physically challenged people.
Bank of Baroda
Bank of Baroda is going to have a separate list of charges for savings and current account holders. For savings bank customers, up to three deposits and three withdrawals a month will be free. From the fourth deposit onward, a fee of Rs 50 will be charged per transaction for metro locations (Rs 40 for non-metro) and Rs 125 for withdrawals (Rs 100 for non-metro).
Current and overdraft account holders can make a deposit of up to Rs 1 lakh per day free of charge. Amounts exceeding this will be charged at Re 1 per Rs 1000 of deposit, with a minimum charge of Rs 50 and maximum of Rs 20,000. Account holders will be able to make three withdrawals a month free of charge but will have to pay Rs 150 for every subsequent transaction.
These fees will not be applicable for Jan Dhan account holders, but the relief has not been extended to senior citizens.
Axis Bank and others
Axis Bank had already introduced transaction charges from 1 August 2020 for cash deposits during non-banking hours (5 pm to 9:30 am) and on state and national holidays, at Rs 50 per transaction. Other national banks such as Bank of India, Punjab National Bank, and Central Bank may also introduce a list of charges that are currently under review.
According to RBI guidelines, all banks are permitted to ‘levy charges for their services in a fair, transparent, and non-discriminatory manner, based on the costs involved’. The Finance Ministry has, however, confirmed that no service charges will be applicable on the 60 crore BSBD accounts, including 41 crore Jan Dhan accounts that were opened to increase the financial inclusivity of the marginalised and unbanked segments. Large cash withdrawals from banks, post offices will attract TDS.