Not just withdrawals, banks charge you for checking balance and mini statement too
Apart from the levies on withdrawals beyond the free limit, banks charge their customers for non-financial transactions like checking balance and accessing mini-statements as well.
Take a look at this ATM charge structure HDFC Bank has had in place since 2014:
#1 Note the last column, where the bank elucidates the charges it intends to levy on transactions “beyond prescribed limit of free transactions”. For savings and salary account holders, cash withdrawal carries and additional charge of Rs 20 and “non-financial transactions” carry a charge of Rs 8.50.
#2 In its footnote, the bank explains that “non-financial transactions” basically include balance enquiry, mini statement and PIN change.
#3 Also, note that the “5 free transactions” don’t simply mean cash withdrawals — they include these non-financial transactions. Which basically means, that if you check your balance and mini-statement once a month and also change your PIN you are only left with two cash withdrawals free of any additional charges.
#4 The levies are not the final amount. Any applicable taxes will also be added to this amount.
Here’s what charges levied by other banks look like:
Developments this week
Banks, including HDFC Bank, ICICI Bank and Axis Bank, announced on Monday that they will resume levying a minimum charge of Rs 150 per transaction for cash deposits and withdrawals beyond four free transactions in a month.
The charges will apply to savings as well as salary accounts effective from Wednesday, HDFC Bank had said in a statement.
According to the bank’s new rule, apart from having to pay an additional Rs 150 for the fifth transaction after four free ones, consumers will have to pay cess and an additional service tax.
While a transaction of Rs 25,000 from a non-home branch won’t cost you a penny, anything above Rs 25,000 will be charged Rs 5 per thousand or a minimal amount of Rs 150 once and for all. The tax and cess will be applicable on this amount as well.
At a home branch, if the cumulative cash (deposit and withdrawal) exceed Rs 2 lakh, a transaction charge of Rs 5 per thousand rupees or Rs 150 (plus tax and cess) will be levied.
According to HDFC, there will be no charge or tax for minors and senior citizens up to an amount of Rs 25,000 per day.
Third party transactions above Rs 25,000 won’t be allowed. Only a transaction up to Rs 25,000 with Rs 150 charge will be accepted.
The only positive is that the cash handling charges imposed after the note ban have now been removed completely.
Credit: India Today
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