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 3rd 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.

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Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.