Banks to impose transaction charges above specified limit starting March 1

After demonetisation, March is going to hit you hard as most banks are expected to begin levying transaction charges on customers.

As the country marches past the demonetisation era, banks are slated to charge for transactions above a certain limit on a monthly basis.

HDFC have started notifying customers on the charges while ICICI and Axis are in the process of deciding transaction limit.

HDFC has already issued a notification that only four cash transactions including deposit and withdrawal will be free, after that, a customer will be charged a minimal fee ranging from Rs 5 to Rs 150 depending on the transacted amount.

The cap on the transaction has been placed at Rs 2 lakh per month per account. Any transaction above Rs 2 lakh will be levied a charge.  It is to be noted that Finance Minister Arun Jaitley has already put a cap of Rs 3 lakh for a cash transaction in the union budget for 2017-18.

This move by banks can be seen as encouraging the trend of digital payments and help move towards a digital economy.

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