HDFC Bank on Wednesday announced a hike on charges applicable on cash transactions, in line with the policies set by ICICI and Axis Bank, which have restored their previous charges on cash transactions.

The move is essentially being seen as an attempt to discourage cash transactions and make a move towards a digitized economy.

So, starting now you might have to spend more on any transaction over the banks’ limit. Of course, different banks have set different guidelines for its customers.

Here’s how you will be impacted if you are an account holder at any of these banks:

HDFC bank account holders:

HDFC bank customers will be most affected by its new rule. However, here are some basic parameters over which they would be charged for a cash transaction.

First four cash transactions (deposits or withdrawals) in a month are free. Starting from the fifth one, the customer will be charged Rs.150 per transaction.

Home branch customers will have the privilege over non-home branch customers. Home branch customers are allowed to transact up to Rs.2 lakhs, while non-home branch customers are restricted to Rs.25,000 in a day.

Further, both home and non-home branch customers would be charged at the rate of Rs.5 per Rs1,000 or Rs.150.

Axis bank account holders:

The new policy seems less troublesome for Axis bank customers. They will be allowed five free transactions every month and after that they would have to pay Rs.95 per transaction. 

Non-home branch account holders will be restricted up to Rs.50,000 per day. Beyond the capped amount, the bank would charge them with Rs.2.50 per Rs 1,000, or Rs.95 per transaction.

ICICI Bank account holders:

ICICI bank customers will not be charged for first four transactions, while Rs.5 per thousand rupees or a minimum of Rs.150 would be charged, thereafter.

An added policy here is that the third party cash transactions would be limited up to Rs.50,000 per day. 

The bank will not charge anything on first cash transaction of a month, though Rs.5 per thousand rupees or a minimum of Rs.150 would be charged thereafter. 

Account holders in SBI/PNB

State Bank of India and Punjab National Bank have not announced a hike on cash transactions’ charge so far neither has any other private bank, though they are expected to follow the trend in near future.