Home » Business » economy » Money » banking » Now, Rs.150 Charge After Every 4 ‘Cash’ Transactions; Govt Orders Activation Of Internet & Mobile Banking By March 31st!
Last updated: March 2, 2017 at 12:26 pm

Now, Rs.150 Charge After Every 4 ‘Cash’ Transactions; Govt Orders Activation Of Internet & Mobile Banking By March 31st!

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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..

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  • I am not sure this is good decision at this juncture. This will encourage hoarding of cash, which is going on even now due to insufficient cash in the ATMs. The idea behind it is to encourage cashless transaction and ultimate extend the income tax net. But at this juncture it is premature. Why I said said this is – a) What is the percentage of people in rural areas, towns and even small businessmen in cities, glossary shops, street side vendors like fishmongers, vegetable vendors, etc have gadgets for cashless transactions? b) Due to this fees/fine, businessmen and others who deals with cash (non salaries class people) will not deposit cash into bank which will again create cash crunch in banks, especially notes of smaller denominations. c) Even the salaries class whose salary/pay are directly deposited in their bank accounts, will withdraw the entire cash in one or two transactions. Earlier, they used to save their money in their bank accounts and drew money as and when they need in smaller amounts. The government should have first ensured that atleast the medium size businesssshops/retailers use gadgets and it should have been made compulsory that all shops have these machines “in working condition”. Often we know even big and medium retailers discourage the customers from cashless transactions, saying, either their machine is out of order or additional service fee will be charged etc. I know the city i stay do not have even one shop, hospital or any business establishment receiving payments through debit/credit cards. Another point – Of late it has become a practice with law enforcing agencies to cut of mobile internet services including SMS services at a short notice of even a small incident, a bandh etc. This could go on for days and weeks. In such a situation what should the people do? Go in search of broadband?

  • Government has taken good decision, but what about rural areas and farmers, because they sale their grains, cotton, fruits one by one. And cotton is sold per week to pay worker. And balance is deposited to bank per week. What about them?????????

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