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Now, third-party cash deposits set to pinch

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Banks levy a fee on transactions under core banking solutions.

recently discovered how anywhere banking did not come for free. Around three months ago, Dhingra was asked by HDFC Bank to pay Rs 100 when he had gone to deposit cash in his friend’s account in Delhi. Now, almost all banks, including public sector players, offering third-party cash deposits through (CBS) levy a fee.

So be prepared to have extra cash in your wallet when depositing money at a non-home branch.
 

TIME TO PAY
Bank  Fee (Rs) Deposit cap#
HDFC Bank  100 10,000
ICICI Bank  169-243  50,000
SBI  25*  None
Union Bank  20 onwards  None
Vijaya Bank  Variable  NA
* Rs 2 per Rs 1,000 for deposits beyond Rs 25,000
Applicable for third-party cash deposits in non-home branches
# in Rs/ branch/ day

The platform facilitates a channel for an account-holder to get the money deposited in his account instantly credited, irrespective of the location of the branch where the money is deposited. The technology allows anybody to deposit cash or a cheque in any bank branch.

While it offers convenience, banks said the fee is based on internal policies framed by them and the Reserve Bank of India (RBI) guidelines do not say there is anything wrong with it.

A top executive at (SBI) said earlier the CBS transactions were kept free as the system was not fully enabled at some of the bank’s major branches in the country. “when the system is in place and there is a cost involved, we have to start charging for the services,” said the SBI executive. The bank is in the process of revising these charges.

An executive at a private bank said customers have enormously benefited from CBS services and levying a charge for the facility is reasonable. In coming days, more banks are likely to join the rush.

Those like Dhingra, however, complain that banks do not often inform account-holders about these charges.

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