CHENNAI: Bank of Maharashtra, Axis Bank, Kotak Mahindra Bank and RBL Bank have imposed charges for cash withdrawal or increased minimum balance requirements effective August 1.
A SB (savings bank) account holder at Bank of Maharashtra, will now have to maintain a minimum of monthly average balance of Rs 2,000 with branches in metro and urban areas, compared to Rs 1,500 earlier, failing which there is a penalty of maximum of Rs 75 in metro and urban branches, Rs 50 in semi-urban branches and Rs Rs 20 in rural branches per month. For current account holders, a monthly average balance of Rs 5,000 to be maintained, compared to the previous rule of quarterly maintenance.
A cash handling fee of Rs 100 on deposits and withdrawals, after three free transactions (each) in a month in both home & non-home branches put together has also been introduced. While deposit for locker has been reduced, the penalty for locker rent arrears has been increased.
“The banking industry has undergone a significant digital transformation post Covid-19. As part of our Bank’s digital strategy we have decided to encourage our customers to use alternate / digital channels in the present environment. Services Charges have been primarily revised to encourage digital banking and further reduce P2P contact within the branches. Furthermore, the revised services charges are competitive,” AS Rajeev, MD & CEO, Bank of Maharashtra said. Axis Bank account holders will have to Rs 25 per ECS transaction, which was zero earlier. It has introduced charges for locker access beyond a threshold limit.
The private bank has introduced a cash handling fee of Rs 100 per bundle (1,000 notes) on lower denominations notes of Rs 10/Rs 20/Rs 50 only.
Praveen Bhatt, head of retail liabilities & direct channels, Axis Bank said, “Reviewing and rationalising fees is an ongoing throughout-the-year activity. This round of charge revisions were focused on encouraging digital way of Banking instead of excessive usage of cash.”
For savings and corporate salary account holders at Kotak Mahindra Bank, debit card-ATM charges stand at Rs 20 per cash withdrawal and Rs 8.5 per non-financial transaction, after five free transactions per month. A Rs 25 fee will be levied on every failed transaction at merchant outlets or websites or ATMs, due to insufficient balance.
Account holders in Kotak Mahindra Bank will have to pay a penalty if they do not maintain an average minimum balance, depending on the account category. Besides, a cash withdrawal fee of Rs 100 per transaction for every fourth transaction has been introduced.