ICICI Bank customers will continue to enjoy free ATM withdrawals at ICICI Bank ATMs, subject to the usual monthly limit. However, beyond five free transactions at ICICI Bank ATMs in metro locations, a fee of ₹21 per additional transaction will apply (previously ₹20).
At non-ICICI Bank ATMs, the first three monthly transactions in metro cities and five in non-metro cities remain free, after which the revised charge of ₹21 per transaction will be applicable (up from ₹20 previously).
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“We review our fee structure periodically to ensure sustainability and service quality. The increment is modest and in line with RBI guidelines,” a senior ICICI Bank official told local media.
Demand Draft (DD) Issuance
The bank has also revised charges for issuing demand drafts over the counter. For drafts up to ₹10,000, the fee rises from ₹30 to ₹35 per instrument. For drafts above ₹10,000, the charge will now be ₹3.50 per ₹1,000 (minimum ₹35, maximum ₹10,000), replacing the previous ₹3 per ₹1,000 slab.
Customers generating demand drafts through the bank’s online platform will continue to enjoy a discounted rate at 50% of the branch charges.
Cash Transaction Fees
Cash deposit and withdrawal limits at branches and cash deposit machines (CDMs) have been updated. Savings account holders will now get four free cash transactions (inclusive of both deposits and withdrawals) per month at branch and CDM locations combined. Beyond this limit, a fee of ₹150 per transaction (previously ₹100) will be charged.
Additionally, transactions above ₹2 lakh per month will incur a fee of ₹5 per ₹1,000, with a minimum charge of ₹150 per transaction. The revised structure aims to encourage digital banking and reduce manual cash handling.
Context: Industry-Wide Rise in Service Charges
The revisions by ICICI Bank follow similar hikes by other major banks such as HDFC Bank and Axis Bank, reflecting operational cost pressures and changing customer usage patterns. Experts say these adjustments, coupled with a push towards digital payments, are part of a longer-term transition in Indian retail banking.
RBI regulations allow banks to set their service charges, provided they notify customers and maintain transparency. However, consumer advocacy groups urge customers to monitor their usage and leverage digital channels to avoid additional fees.
Customer Reactions and Expert Opinions
While some customers expressed concern over rising costs of basic services, others acknowledged the continued availability of free digital banking alternatives, such as UPI and net banking.
“As digital channels become dominant, cash and DD transactions are increasingly niche. These adjustments are likely to push more customers towards cost-effective, contactless options,” said Rajiv Anand, a Mumbai-based fintech analyst, in a phone interview.
ICICI Bank has assured customers that it remains committed to transparency and customer convenience. The bank advises customers to check the detailed schedule of charges, available on its official website, and to consider alternative channels for routine transactions.
Frequently Asked Questions
When will the new charges take effect?
The revisions are effective from July 1, 2024.
Are there any exemptions for senior citizens or special account holders?
Specific exemptions may apply; customers are advised to check with their branch or the official website.
How can customers avoid additional charges?
Opting for digital transactions (UPI, net banking, mobile app) and managing cash/ATM usage within free limits are recommended.
