In continuation with Govt. of India’s cashless push, several new developments have taken place in the last 24 hours. While all banks have been ordered to activate Internet & mobile banking for all customers by March 31, several banks have announced additional charges up to Rs 150 for each cash transaction.
It seems that being cashless won’t be an option henceforth; it shall become a necessity.
Internet & Mobile Banking For All By March 31
In a major push towards cashless India, Govt. of India has ordered all banks to activate mobile and Internet banking for all customers, whether he have opted for the same or not. Deadline for this exercise has been set as March 31st.
As of now, the customer had the choice of opting for the Internet and mobile banking, at the time of opening bank account, or afterwards.
Electronics and IT Secretary Aruna Sundarajan said, “What we have asked the banks to do is to enable all customers who have mobiles for mobile banking… We are asking banks to run a nationwide campaign up to March 31 to ensure that every customer who has a mobile phone is enabled for mobile banking,”
Aruna said that after demonetization drive, mobile and Internet based banking has become a need, and many customers want this service, although they haven’t placed such request. Such proactive drive towards activating e-banking facility is first in India, and considering that it is coming straight from the Govt., holds much significance.
Besides, for those customers who are using BHIM app or any UPI app, mobile banking should be activated by default.
Rs 150 Charge For Cash Transaction
Two major banks in the country have decided to charge a fee for cash transactions, after a specific number of transactions. Charges up to Rs 150 per cash transaction has been announced, making cash an expensive affair.
While HDFC Bank is allowing only 4 cash transactions at their branches, Axis Bank is allowing only 5 free cash based transactions. For 5th cash transaction (both deposit and withdrawal), HDFC customers will need to shell out Rs 150 per transaction, while Axis Bank will charge Rs 2.50 per Rs 1000 cash transaction with a minimum of Rs 95 charge.
HDFC Bank has also announced major changes for their home and non-home branch-based cash transactions. For home-branch customers, there is a limit of Rs 2 lakh cash based free transactions, and beyond that, there is a charge of Rs 5 per Rs 1000 or Rs 150 as the minimum charge. Limit for non-home based branch customers is Rs 25000 per day for free transactions.
ICICI Bank, SBI, Karur Vysya Bank, City Union Bank and DCB Bank have not announced any additional charges for cash transactions, as of now. While SBI has said that public banks won’t be charging any additional fee for using cash, ICICI Bank has placed a 3rd party cap on cash transactions to Rs 50,000 per day.
There has been no new announcements regarding ATM charges for more than 4 withdrawals, but as per some analysts, banks will soon increase ATM interchange fees as well, once the free withdrawals are over.
We will keep you updated as more details come in..