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Banks may charge for accepting your cash

business Updated: Aug 14, 2008 21:29 IST
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Many banks have been increasing the charges that they levy on customers for using various facilities. The customer is often not aware that such a charge exists for using the service and realises this only when the amount is shown deducted in his bank statement. One area where such charges are prominent is with cash dealings and banks have put in place systems so that some transactions can be charged.

Levy on cash deposited for credit card
There is credit card outstanding for the cardholders. Several options are provided for the customer to pay off the amount and this includes cash, cheque deposit or direct debit and so on.

The presence of the option makes many people choose the cash option and this is often preferred because the bank offering the credit card might have a branch next door.

Some banks have started levying charge on cash deposited against a credit card payment. This proves to be costly option for an individual. The way in which they can ensure that the charge is not a cost to them is by using some other mode of payment and not going to the branch to pay the bill in cash.

Cash deposit at non-home branches
Another route adopted by bank also deals with cash deposits. This involves levying charge on cash that is deposited by the customer at a branch that is not their home branch. The branch where a customer has an account is the home branch.
Now with the spread of core banking there is facility available that the individual can transact through any branch linked through core banking.

Evade unnecessary cash transaction
Some points that a customer needs to know is that charges are levied only on cash deposits and not cash withdrawals or cheque deposits.

This means that depositing cash can have a financial impact. The charge will be a certain amount of rupees for each thousand deposited along with a minimum charge being present. This ensures that person has to pay a minimum amount he deposits cash at some other branch. Once again, being alert and not using this facility except in an emergency would ensure that the customer is not burden unnecessarily.