Charges are levied by the bank for every cash transaction over and above a limit for free deposits and withdrawals per month.
These charges will only be applicable on cash transactions at branches and ATM withdrawals will not be considered in calculating the number of transactions.
The free transaction limit is different for different banks and is also based on the types of accounts.However, the restrictions are largely aimed at savings bank accounts.
The move is in line with the government’s efforts to move towards a cashless society.
The new rule would negatively impact people who make withdrawals for daily or weekly use, or those who frequently transfer money from one city to another to their families.