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Remonetisation Begins: Banks Charging Cash Transactions

Remonetization of Currency in India

Effects of demonetisation have almost faded but it has catalysed the process of India’s digitisation. With the beginning of remonetisation, new measures to promote digitisation are being introduced by the government & financial institutions.

Some private sector banks namely HDFC, ICICI & Axis bank have introduced new charges for over the counter transactions. SBI has changed the fee it charges on transactions at its ATMS. So, let’s see what the new charges are:

HDFC bank      

If you often do transactions with HDFC bank, beware of new charges. Now you can only do 4 transactions in a month for free. If your transactions exceed this limit, the bank will slap a charge of Rs. 150. Taxes & cess will be charged over & above this fee. The new charges became applicable from March 1, 2017.

HDFC has also capped third party transactions at Rs. 25,000 while removing cash handling fees. It has also imposed an upper limit of Rs. 2 lakh on free withdrawals & deposits at its home branches. Transactions exceeding this amount will be chargeable. For you, the home branch is the bank branch where you opened your account.


Just like HDFC bank, ICICI bank has also imposed new changes to limit cash transactions by people. It has started charging Rs. 5 per thousand rupees if the number of transactions in a month exceeds 4. However, the minimum fee for crossing the limit is Rs. 150. If you use their cash Acceptance machine, your first deposit every month will be free, but you will be charged Rs. 5 per month after that.

These charges have been slapped on those customers who have basic savings accounts & salary accounts. The bank has kept its privileged customers exempt from such charges.

Axis Bank

Axis has imposed new transactional fees on savings accounts only. First 4 transactions are free in a month, post which Rs. 5 per thousand or Rs. 150, whichever is higher is being charged by the bank. Unlike HDFC & ICICI, Axis has not differentiated between home or non-home branches and basic or privileged customers.

State Bank of India

Other than the private sector banks we talked about earlier, India’s largest public sector bank has also taken a step towards remonetisation & digitisation. From April 1st onwards, its customers will have to pay Rs. 10 excluding service tax, if they make more than 5 transactions from its ATMS in a month. This is in line with the RBI guidelines which makes it mandatory for banks to offer at least 5 free transactions in a month to their savings bank account holders. Non-SBI account holders can make three withdrawals for free from its ATMs. SBI has also mandated banks to offer at least 3 free transactions to cardholders of other banks at their ATMs. So for non-SBI card holders, the bank will be charging 20 rupees (excluding service tax) for crossing the limit. It has so far kept 3 transactions till Rs. 1,000 withdrawal from its ATM by non-SBI account holders free.

Account holders using SBI debit cards will have to shell out Rs. 50 (excluding service tax) if they exceed the fixed limit. The bank has given a levy of 2 transactions below Rs. 1,000, two transactions between Rs. 1,000 and Rs 25,000, and 15 transactions between Rs 50,000 and Rs. 1 lakh, which will be free of charge.

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Neha Joshi
Neha Joshi
Neha Joshi is a Chartered Accountant and an Assistant Manager at H&R Block. She is the Head of Content and is responsible for strategizing the entire content for website, PR and social media. She comes with a rich experience in publishing where she wrote books for various international professional qualifications. She was also a trainer for the subjects she wrote.

1 Comment

  1. Kevin Flores says:

    Hey Niteesh,
    A great post mann! Is there any changes in the charges of IOB?

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