Private sector banks to levy 'transaction' charges

Private sector banks such as ICICI and HDFC bank have notified their respective account holders of a transactional fee, which will be applicable on the fifth transaction in a month.

Earlier today, the banks announced that after an individual does four transactions, the fifth one will be subject to a fee, regardless of whether it is cash withdrawal or deposit. However, the new fee will not be applicable on ATM withdrawals.

Banks have proposed that a fee of Rs. 150 will be added, along with service tax, in addition to a fee of Rs. 5 per 1000.

The cap on transactions has been placed at Rs 2 lakh per month per account. Any transaction beyond this will be applicable for an extra charge.