Planning to deposit all your Rs 2,000 notes at one go? Watch out for these service charges

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If you are planning to deposit your entire cash holding of Rs 2,000 denomination notes in your bank account, then watch out for service charges. The Reserve Bank of India (RBI) has clarified that the exchange of notes will be free of cost. However, deposits into bank accounts would be governed by the usual/normal rules, the central bank stated. Let’s find out about the daily limit, charges, and other details. The majority of banks levy service charges for cash transactions (deposits and withdrawals) done by a customer if a specified amount is crossed within a month. As of now, it appears that these charges will apply even in case of a deposit of Rs 2000 notes.

On May 19, 2023, the Reserve Bank of India (RBI) notified the withdrawal of the 2,000 rupee note from circulation. However, the existing notes will continue to be legal tender, as per RBI’s notification. The central bank has advised the public to deposit Rs 2,000 banknotes into their bank accounts or exchange them for other denomination notes at bank branches. RBI has specified certain rules and guidelines for deposits and exchange of Rs 2,000 banknotes in bank branches. Further, you may have to pay a service charge too. Let’s find out about the daily limit, charges, and other details of depositing Rs 2,000 banknotes.

What do you need to know about depositing the existing Rs 2,000 notes?

The deposit of Rs 2,000 banknotes has already started as per the normal banking practice, bank branches told ET Wealth Online. You can deposit your existing Rs 2,000 denomination notes in any of the bank branches till September 30, 2023.

“Deposit of Rs 2,000 banknotes into accounts maintained with all banks can be made in the usual manner, that is, without restrictions and subject to compliance with extant Know Your Customer (KYC) norms and other applicable Statutory requirements,” RBI said earlier.

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“The banks shall also be required to comply with Cash Transaction Reporting (CTR) and Suspicious Transaction Reporting (STR) requirements, where applicable,” it further added.

Do note that if your bank levies service charges for cash transactions above a certain limit then you may have to pay service charges applicable for depositing your existing Rs 2,000 currency notes in savings accounts in banks.

SBI service charges
For instance, according to the State Bank of India (SBI) website, three cash deposit transactions are free in a month in a regular savings account (including SURABHI Savings Account). Beyond this limit, the bank will levy Rs 50 + GST per deposit. These rules are not applicable for alternate channel transactions, as per the bank website.

There is no restriction on cash deposits at non-home branches for savings bank accounts, as per the SBI website. However, service charges as mentioned above would still apply.

The maximum limit for deposit of cash at non-home branches is up to Rs 2 lakh per day. Thereafter, you have to take permission from the (non-home) branch manager to deposit beyond the free limit with a fee, the bank website mentioned.

For the cash deposit machine, the deposit of cash through a debit card to card linked account is free. For depositing cash via a debit card to a third-party account, the bank will charge Rs 22+GST per transaction.

HDFC Bank service charges
HDFC Bank allows four free transactions per month including deposits and withdrawals by self and third party. After the prescribed limit, the bank charges Rs 150 per transaction. You can deposit up to Rs 2 lakh per month. Beyond this, you have to pay Rs 5 per thousand or part thereof, subject to a minimum of Rs 150+ applicable taxes, according to the bank website. The third-party cash transaction limit has been set at Rs 25,000 per day.

For card-based deposits, the limit is set at Rs 1 lakh per transaction for savings accounts. The daily limit is set at Rs 2 lakh for savings accounts.

ICICI Bank service charges

ICICI Bank allows four free cash transactions including deposits and withdrawals per month. Beyond this, the bank will charge Rs 150 per transaction. You are allowed to deposit up to Rs 1 lakh into your savings account for free in a month. Beyond the free limit, the bank will charge Rs 5 per Rs 1,000 per month or Rs 150, whichever is higher, according to the ICICI Bank website.

In a non-home ICICI Bank branch, you have to pay Rs 5 per Rs 1,000 for a transaction value of above Rs 25,000 in a day or Rs 150, whichever is higher. Third-party transactions are capped at Rs 25,000. Further, the bank will charge a Rs 150 service charge for each third-party transaction. These above-mentioned charges will be applicable for the home branch (branch where the account is opened or ported) and deposits and withdrawals across branches and deposits in cash recycler machines.

Kotak Mahindra Bank service charges
Kotak Mahindra Bank allows five free transactions including withdrawals and deposits or Rs 3 lakh whichever is earlier. Once you cross this limit, you have to pay a service charge of Rs 4.5 per Rs 1000 or a minimum of Rs 150, according to the bank website. These charges will be applicable for cash transactions at the branch or cash deposit machine.

Similarly, other banks may also charge a certain service charge to deposit money into your account. To get a clear idea, ask your branch or check the website before depositing money.

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