Tuesday, March 7, 2017

List of New Fees and Charges Proposed by Banks in India

In the past week Social Media is abuzz with a ton of memes about the new fees and charges introduced by banks. While some are true many are also fake which are just intended to spread fear and create a sense of restlessness among the general public. As a Blogger it is my responsibility to help you understand what exactly are these changes or rather the new fees that you may get subjected to. 
The article is structured in such a way that you will find out all the new fees & charges introduced by every bank that has come out with a public announcement so far (as of this writing). 

Note: Existing charges that were already being charged are not covered in this article. Only the newly introduced fees are being listed down. Also, the fees mentioned below do not include the Service Tax which the bank will charge on top of the fee. So, if I say fees is Rs. X, read as Rs. X+service tax.


ICICI Bank has introduced the following NEW charges: 

1. Cash Handling Charges at Home City Branches – After the first four cash transactions at your home city branches, you will be charged a fee of Rs. 5 per Rs. 1000 or Rs. 150 (whichever is higher) on every cash transaction (Both Deposit & Withdrawal) 
2. You have one free cash withdrawal at non-home branches per month. For subsequent transactions a charge of Rs. 5 per Rs. 1000 or Rs. 150 (whichever is higher) will be charged
3. Cash deposit at non-home branches will be subject to a charge of Rs. 5 per Rs. 1000 or Rs. 150 (whichever is higher) 
4. The first Deposit made using a Cash deposit machine in the month is free while subsequent transactions will incur a charge of Rs. 5 per Rs. 1000 or Rs. 150 (whichever is higher)
5. Third Party cash transactions are capped at Rs. 50,000 per day 

Axis Bank

Axis Bank has introduced the following NEW charges: 

1. In your home branch, up to 5 transactions are free in a month with no limit of deposit or withdrawal. For very subsequent transaction there will be a charge of Rs. 2.50 per Rs. 1000 or Rs. 95 (whichever is higher)
2. In non-home branches, up to 5 transactions a month are free only up to a value of Rs. 50,000 per day of deposit or withdrawal. Beyond this limit, Rs. 2.50 per Rs. 1000 or Rs. 95 (whichever is higher) will be charged 
3. The first 5 ATM transactions are free in a month. After this, every subsequent transaction will incur a fee of Rs. 20

HDFC Bank 

HDFC Bank has introduced the following NEW charges: 

1. The first 4 cash transactions in a month are free. For every subsequent transaction there will be a charge of Rs. 150 (this includes both regular savings and salary accounts) 
2. Cash withdrawals at home branches will have an upper limit of Rs. 2 lakh per month per account. Above this limit there will be a transaction charge of Rs. 5 per Rs. 1000 or Rs. 150 (whichever is higher)
3. Cash withdrawals at non-home branches are free up to Rs. 25,000 per day. Above this limit there will be a transaction charge of Rs. 5 per Rs. 1000 or Rs. 150 (whichever is higher)
4. Senior Citizens and Children will not be charged any amount for such transactions

State Bank of India (SBI)

The largest bank in India SBI has actually come out with major changes which are:
1. All customers are expected to maintain a minimum balance depending on their location/branch. Metro cities – 5000, Urban areas – 3000, Semi-urban areas – 2000 and Rural areas -1000 is the minimum balance that customers have to maintain in their account to avoid penalty charges
2. The penalty charges for non-maintenance of account balance for Rural areas ranges between Rs. 20 to Rs. 50 and for Urban areas ranges from Rs. 50 to Rs. 100
3. Three cash deposit transactions are free per month for Savings account holders and every subsequent transaction will attract a fee of Rs. 50 
4. If cash withdrawal is done on other bank ATM’s, a charge of Rs. 20 will be levied from the 4th transaction onward. (If customer maintains a balance of Rs. 1 lakh or more, this fee for withdrawal on other bank ATMs is waived off) 
5. If cash withdrawal is done on SBI ATMs the first 5 transactions are free and subsequent transactions will attract of fee of Rs. 10 per transaction (If customer maintains a balance of Rs. 25,000 or more this fee for withdrawal from SBI ATMs is Waived off)
6. SBI will charge Rs. 15 for SMS alerts per quarter from debit card holders who maintain an account balance below Rs. 25,000
7. There will be no charges for UPI/USSD transactions of up to Rs. 1000 (UPI stands for Unified Payment Interface and USSD stands for Unstructured Supplementary Service Data – both are used for electronic payments)

Some Last words:

This article is only a NEWS type article which lists down all the charges. I will share my views on these charges in the next article…

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