Govt asks banks to reconsider cash transaction charges

Govt asks banks to reconsider cash transaction charges

Govt asks banks to reconsider cash transaction charges

The government on Monday asked India’s largest public sector lender State Bank of India and private sector banks to reconsider the charges they have decided to impose on cash transactions above a certain limit.

Some private banks, including HDFC Bank, ICICI Bank and Axis Bank, have started charging a minimum amount of Rs 150 per transaction for cash deposits and withdrawals beyond four free transactions in a month.

Public sector Oriental Bank of Commerce has also followed suit, but SBI has made its intent clear that it will charge Rs 50 beyond three free transactions.

The banks have also said that they would resume the levy on ATM transactions beyond a limit.

DH had on Friday reported Finance Minister Arun Jaitley as saying that he would nudge banks to reconsider their decision.

The government has also asked SBI to reconsider its decision to impose penalty on non-maintenance of minimum balance in the savings bank accounts and current accounts.

SBI has said it would levy charges ranging from Rs 20-100 on non-maintenance of Minimum Average Balance (MAB) in savings bank accounts from April 1. The penalty is Rs 500 in case of current accounts.

The bank has increased the minimum balance requirement. In metro cities, it is as high as Rs 5,000 and penalty for non-maintenance of minimum balance will be between Rs 50 and Rs 100.

For urban and semi-urban branches, the MAB has been fixed at Rs 3,000 and Rs 2,000 respectively.

As of now, MAB for a savings bank account is Rs 500 without facility of cheque book and Rs 1,000 with cheque book across the country.