Know About the Charges Associated with Current Account & Their Limit

17 APRIL, 2023

Have you ever witnessed a situation where you went to the branch to deposit cash in your bank account but failed to get the whole amount deposited? This usually happens because a specific marginal amount is deducted from your cash deposit as part of service charges. May it be a 3^rd party or you, many banks incur service charges on the cash you deposit in your bank accounts. You would be the third party; in case the cash deposit is conducted in someone else’s bank account. It would be the case if someone else was depositing cash in your account at your branch.

Making regular cash deposits has become very common; in fact, many banks have introduced their own machines in different branches where you do not require to fill up the form to make the deposit. However, if you are unfamiliar with ways on how to use the cash deposit machine, you can always select the traditional banking route. Note that this scenario is not just true for savings bank accounts but also applies to Current Accounts.

One of the crucial features of a Current Account is that free deposits are allowed at home branch locations and in non-home branch locations. However, usually up to a pre-determined limit there are no charges on such deposits, post which charges are applied. Limits for this benefit may vary from account to account. For instance, a regular Current Account with an AQB (Average Quarterly Balance) requirement of Rs. 10,000 may allow free cash deposit of up to Rs. 2 lakh per month.

However, in case of a Startup Premium Current Account with AQB requirement of Rs. 1 lakh, unlimited free cash deposit at home branch location may be allowed for up to 5 times, while free cash deposit at non-home branch may be allowed for up to Rs. 3 lakh per month. On exceeding the predetermined limit, charges may be levied by the bank. Remember that charges are also levied on non-maintenance of Current Account minimum balance. You may know these charges by visiting the GSFC (general schedule of features and charges) section of the bank website.

Here Is A List Of Different Charges Associated With Current Account:

1)       Demand draft/banker’s cheque charge

2)       RTGS, NEFT and IMPS charge

3)       Fund transfer charge

4)       Cheque book issuance charge

5)       Outstation cheque charge

6)       On call request charge

7)       Cash deposit and cash withdrawal charge

8)       Card replacement charge

9)       Non-maintenance charge

Remember that, the above features for most bank accounts may be free per month up to a specific limit, after which charges are levied on exceeding the set limit. Even in the case of non-maintenance of Current Account minimum balance, few premium accounts may waive off the penalty only for the first year.