What is a cash TXN charge?

The application of cash transaction charges is not limited to a single transaction type. Both cash withdrawals and deposits can attract these charges if they exceed the prescribed limits. This means that customers need to carefully manage their cash flows to avoid incurring unnecessary expenses.

To minimize the impact of cash transaction charges, customers can opt for digital payment methods like online banking, debit cards, or credit cards for their transactions. These alternatives often offer lower or no transaction fees and can help customers save money in the long run.

Cash Transaction charges are a crucial aspect of banking operations, particularly for individuals and businesses that frequently engage in cash-based transactions. These fees are levied by financial institutions when the predefined limits for cash withdrawals or deposits are exceeded within a given month.

Additionally, customers can also negotiate with their banks to increase their cash transaction limits or seek exemptions from these charges based on their financial needs and transaction patterns. Banks may consider such requests on a case-by-case basis.

Banks establish these limits to manage their liquidity and ensure compliance with regulatory requirements. When these thresholds are surpassed, banks apply cash transaction charges as a means of deterring excessive cash usage and encouraging digital transactions.