Private Bank charges have already come into effect for the three big Private Banks of India. HDFC Bank is the latest one to join the race along with some re-introduction to existing rules for ICICI and Axis Bank. The charges at the branch for Cash Deposit and Cash Withdrawal after the first four free transactions have been widely reported. Charges are without a doubt one of the most frustrating things about having a bank account. Why can’t we have a checking account that is against fees like SoFi in the United States?
HDFC would charge minimum INR 150 for the cash transactions at the branch after the four free transactions. However, the rules are already in place for ICICI Bank that charges INR 5 per INR 1000 subject to minimum INR 150. The ATM Transaction fee for the Axis Bank has also been revised. Now, the first 5 transactions or INR 10 Lakhs would be free and thereafter INR 5 per INR 1000 or INR 150 whichever is higher would be charged from the customer.
This has already created much confusion among the customers. But what is going to change after that? If the rules are drilled down deeply, then it becomes clear that the Private Banks do not really want to encourage the cash transactions anymore. The Cash Handling charges have also been waved off. The banks now want people to come in digital mode for the cash transactions that can be easily monitored and at the same time, it can be easily counted for the accountability.
After demonetization, the Indian Banking System is witnessing a push towards the Digital drive and online banking. However, the Public Banks have not announced any such rules like Private Bank charges; they are yet to get directives from the Government.