The entire nation has been talking about the Rs 150 minimum charge to be levied by the banks for cash deposits and withdrawals. The charge would be applicable at branches after four free transactions per month. The three banks, HDFC, ICICI and Axis will calculate the fee at the rate of Rs 5 for every Rs 1,000 transacted or 150, whichever is higher.
There are many who are still confused about this Rs 150 transaction fee. First and foremost, it must be clarified that this fee would not be applicable to ATM transactions. Five withdrawals from ATMs of the account holder's bank will be free. ATM transactions from the 6th withdrawal onwards would be charged at Rs 20. Cash withdrawals from other banks would be free for the first three transactions.
How the Rs 150 fee works (ICICI):
The ICICI bank will have four free transactions. The levy of Rs 150 will be applicable from the 5th transaction onwards. ICICI says that the charge would be applicable only at non-home branches. ICICI defines home branch as the city where the account was opened. The charges would be applicable for basic, savings and salary accounts. The privileged accounts are exempt. There has been no change in the policy of the ICICI and this transaction fee had resumed after January 1 2017.
A fee of Rs 150 will be charged from the 5th transaction onwards. The first four would be free. HDFC defines home branch as the one where the account was opened. Withdrawals and deposits of up to Rs 2 lakh is allowed at home branches. Transactions above this limit would be chargeable.
The transaction fee would be applicable to basic, savings, salary, prime, classic, imperia, preferred and prime accounts. Exemption has been granted to managed programme customers. Until March 1, a fee of Rs 100 was charged on the sixth transaction.
From the 5th transaction, a fee of Rs 5 per rs 1,000 or Rs 150 -- whichever is higher will be levied on savings accounts. In the case of Axis there is no differentiation between home and non-home branches, which means the same rule is applicable in all its branches.
The rule is applicable to salary accounts. Privileged customers are exempt from the transaction fee. There is no change in the rule where Axis is concerned. It was however kept in abeyance between November and December. The levy resumed after January.