Press Information Bureau

Government of India

Ministry of Finance

18-May-2012 16:58 IST

Cash Handling Charges

Reserve Bank of India (RBI) has informed that banks have been advised to ensure that their branches invariably accept cash over the counters from all their customers who desire to deposit cash at the counters. Banks have also been advised to refrain from incorporating clauses in the terms and conditions which restricts deposit of cash over the counters. However, Indian Banks Association (IBA) had advised that banks may be levying charges when very large amounts are deposited across the counter as counting large quantities of cash and handling them have cost elements for banks.

With effect from September, 1999 banks have been given freedom to fix service charges for various types of services rendered by them. While fixing service charges, banks should ensure that the charges are reasonable and not out of line with the average cost of providing these services.

This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in the Lok Sabha today.

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DSM/SS/SL

Cash handling charges: banks may levy reasonable fees for very large counter deposits while ensuring acceptance. Banks must accept cash deposits over the counter from any customer and should not include terms restricting such deposits; banks may levy charges for very large cash deposits to cover counting and handling costs, and since September 1999 banks are permitted to fix service charges provided those charges are reasonable and in line with the average cost of the service.