HDFC, ICICI and Axis banks to levy cash transaction charge: Do you think the move is justifiable?

In a late-night move on Tuesday, top private banks announced a levy on cash deposits and withdrawals after four free transactions a month. HDFC, ICICI and Axis Banks said they will calculate the fee – aimed at reducing cash dealings – at the rate of Rs 5 per Rs 1000 transacted, or Rs 150, whichever is lower.

In a late-night move on Tuesday, top private banks announced a levy on cash deposits and withdrawals after four free transactions a month. HDFC, ICICI and Axis Banks said they will calculate the fee – aimed at reducing cash dealings – at the rate of Rs 5 per Rs 1000 transacted, or Rs 150, whichever is lower.

Indore, India - Nov. 18, 2016: A man takes out Rs 2000 currency note from an ATM in Indore, India, on Friday, November 18, 2016. (Photo by Shankar Mourya/ HT/ PHOTO) With Manoj Ahuja story (Shankar Mourya/HT Photo)

The move has revived charges that were kept in abeyance after the government withdrew Rs 500 and Rs 1000 notes last November. The latest charges come after the government promised the cash situation returning to normal by March-end.