It has been observed that some banks are charging fee from their customers on account of cash handling/sorting at the time of receipt of cash deposits. As the acceptance of cash at counters from the depositors is a core banking service, the recovery of charges on such services is considered to be inappropriate for the banks.

• Accordingly, it has been decided that the banks shall not recover any charges on account of cash handling/sorting at the time of acceptance of cash at the counters from their depositors. Further, the banks will neither refuse such services nor recover service charges, on any other pretext. It is also clarified that the banks are allowed to recover service charges on deposit/withdrawal of cash on-line as per their schedule of charges.
• All the banks are advised to ensure compliance with these instructions as non-compliance shall be dealt with in accordance with the relevant provisions of law.