In a bid to discourage cash transactions, from March 1, customers carrying out financial transactions at HDFC Bank branches will have to pay a fee if the number of transactions exceed beyond four.
"Four free cash transactions per month. Fifth transaction onwards Rs 150 per transaction (plus taxes and cess) would be levied," HDFC Bank said in a statement.
It will be effective from March 1, it said.
"At its home branch, HDFC bank has kept an upper limit of Rs 2 lakh per month per account while above that Rs 5 per Rs 1,000 or part thereof, subject to a minimum of Rs 150 (plus taxes and cess) will be levied," the statement said.
ICICI Bank has already been levying a similar fee since July last year on cash transactions beyond five.
"It is nil for the first four transactions in a month. Thereafter Rs 5 per Rs 1,000 or part thereof, subject to a minimum of Rs 150 in the same month. Maximum limit is nil for self but Rs 50,000 per day for third party," according to the list of ICICI Bank transaction charges.
Axis Bank has also begun levying a transaction fee from March 1.
At Axis Bank, there will be no charge on cash deposits or withdrawals of Rs 10 lakhs or the first five transactions and thereafter will be charged at Rs 5 per thousand or Rs 150, whichever is higher.
It is not immediately clear if public sector banks will also be imposing charges on cash transactions.
(with IANS inputs)