Banks' decision to levy cash transaction charges most retrograde step, says Chidambaram

Former Union finance minister P Chidambaram has termed the move by some public and private banks to levy charges after certain number of cash transactions at branches as the most retrograde step. 

Banks including HDFC Bank, ICICI Bank and Axis Bank at present charge a minimum Rs 150 per transaction for cash deposits and withdrawals beyond four free transactions in a month. 

"Bank charges for depositing cash and withdrawing cash is most retrograde step," Chidambaram tweeted. 

"Will banks be happy if customers withdraw cash in one go and keep cash at home," the senior Congress leader posted on Twitter. 

The move to re-impose a fee on cash transactions was seen in some quarters as aimed at discouraging cash transactions and furthering the digital payment drive.

(1/2) Bank charges for depositing cash and withdrawing cash is most retrograde step.

— P. Chidambaram (@PChidambaram_IN) March 5, 2017

(2/2) Will banks be happy if customers withdraw cash in one go and keep cash at home?

— P. Chidambaram (@PChidambaram_IN) March 5, 2017