Since the time the Modi government declared its demonetisation move, the Indian banking system has experienced paradigm shifts. For the uninitiated, we are referring to the demonetization that happened recently on the 8th of November 2016 where the old notes of Rs. 500 and Rs. 1000 were removed from circulation. From the time when people used to line up in queues in banks to today's age of Unified Payment Interfaces, we've come a long way. Before the demonetisation move, India was unfamiliar with digital transactions because majority of the transactions were cash-based. However, after the revolutionary move, now even a street vendor keeps Paytm wallet as a mode of payment.
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Keeping the recent digitisation in mind, major private banks have reintroduced transaction fees. For businessmen and huge conglomerates who are involved in everyday transactions, this move is certainly not easy to swallow. To help you better understand the system of Indian banking transactions, we've put together the latest rules for the year.
Minimum monthly average account balance for savings account
The minimum monthly average balance necessary for a basic ‘no frills account’ is zero. The limit of cash transactions is not chargeable from any savings account for the first four transactions in any given month.
Additional charges on increasing the number of cash transactions
Major private banks like ICICI Bank, HDFC Bank, and Axis Bank now charge Rs 150 per transaction for cash deposits and withdrawals if you exceed the limit of your transactions per month. For HDFC Bank customers, the charges are effective on Savings as well as Salaried accounts. In the case of ICICI Bank users, Rs 5 will be charged after the first four transactions to account users on each Rs 1000. With respect to this, the third party limit is Rs 5000 per day.
Banks will levy additional charges for checking balance
Now checking balance and getting mini statements is chargeable if you're an account holder at a private bank. The ‘non-financial’ affairs such as balance enquiry, change of pin, and accessing mini statements carry an additional charge of Rs 8.5, not taking into account applicable taxes.
Interbank ATM fees
The interbank ATM charges have also been amended. Axis Bank, for example, has made use of the relief for the first five transactions or till Rs 10 lakhs of cash withdrawals or deposits, after which five rupees will be charged on every 1000 or Rs 150 on every transaction, whichever is higher.
Does any individual have permanent release from all the above mentioned charges?
Yes, minor account holders and senior citizens are free from all the additional charges listed above.
Are the public sector banks likely to impose similar charges in the near future?
There has been no clarification on how and when public sector banks will impose similar charges on their account holders.
Make sure to pay careful attention to the points mentioned above so as to avoid incurring any extra fees on monthly transactions.