Update: An HDFC Bank official told MediaNama that the charges are being levied to discourage customers from usage of cash and shift to digital modes of transactions in line with the government's proposals to curb cash. The bank says that 71% of its transactions take place on Internet and mobile channels and 15% of transactions happen at ATMs and only 11% of transactions happen at branches (pdf). Earlier: At a time when the government is looking to disincentivize the use of cash, three major private banks - HDFC Bank, ICICI Bank and Axis Bank - have started charging customers a fee for cash withdrawals at branches. Starting from March 1, 2017, HDFC Bank will be charging customers with a savings bank account Rs 150 (plus taxes) after four transactions at a branch. At home branches (where the account was opened), customers will be allowed to withdraw Rs 2 lakh without any charges following which, they will be charged Rs 5 per thousand along with a minimum fee of Rs 150. At non-home branches, customers can withdraw Rs 25,000 without charges per day. They will be charged Rs 5 per thousand or part thereof, subject to a minimum of Rs 150. For, third party cash transaction, there is a limit of Rs 25,000 per day and a fee of Rs 150. Above Rs 25,000 these transactions are not allowed. Note that the above charges not applicable to Prime, Classic, Preferred, Imperia or any other Managed program customers. Meanwhile, at ICICI Bank, customers…
