Personal Finance

Does Cash Transaction Charges In Banks Really Impact You?

Does Cash Transaction Charges In Banks Really Impact You?

Cashless payment encouraged by the government faces danger as few of the banks have decided to impose transaction charges after certain number of withdrawal from the bank through ATM or other means. HDFC bank, ICICI bank and Axis bank has decided to charge Rupees 150 after four free transactions from branches and three from non account ATM branches and five from home branches.

You can deposit and withdraw money four times for free in a month. Transaction above four times will cost you rupees 5 per transaction or rupees 150 for once and for all including cess and service charge.  Banks will also charge you on transactions through ATMs. SBI will charge rupees 20 per transaction after three monthly transaction from different branch and 5 from the home branch.

Details on the new Transaction Charges Guidelines:

Banks relieved the customers after the demonetization drive so that they can make transactions whenever and wherever they wanted. Due to lack of money, people had to withdraw money frequently from any ATM that dispensed cash. Later when the flow of money is normal, banks have again started charging.

 These transaction charges were in place before also but the banks have brought it this time with new guidelines. You will be charged for both withdrawal and deposit through ATMs or bank branches if you cross the stated limit. Most banks have allowed three to five monthly transactions, but the question is why do we need to use this for so many times?

Is there a necessity to perform so many Transactions in a Month?

The answer is divided. Sometimes you need urgent requirement of money at different intervals; therefore you need to withdraw it on short intervals. People who are employees and whose payment is fixed do not deposit money on daily basis but most small businessman frequently deposit their cash.

People who travel much also do transactions frequently as travelling with huge sum of money is always dangerous. Most people don’t have fair idea about how much money they are going to spend in a particular frame of time, they often need extra transactions. Most of the banks have given relief to their special customers and they can deposit or withdraw cash unlimited number of times in a month.

Apart from some unexpected requirements, most customers do not require so many transactions in a month if their planning of expense is fair. Planning of budget based on monthly income can save you from unnecessary expenses through transaction charges.

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  1. Pingback: Maths Behind SBI Reducing Online Banking Charges - Finance Minutes

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