HDFC Bank begins to levy cash transaction fee

ICICI Bank has already been levying a similar fee since July 2016 on cash transactions beyond five

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 exceeds 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. The maximum limit is nil for self but Rs 50,000 per day for the third party," according to the list of ICICI Bank transaction charges.