Axis Bank tightens savings account terms with higher charges from December

Axis Bank has announced revisions to its savings account structure that will take effect from December 1, marking a significant shift in the bank's retail deposit strategy. The changes will include a reduction in the number of free cash transactions permitted to account holders, alongside an increase in penalties levied for failure to maintain minimum balance requirements.

The bank has also decided to raise its cheque return fees, adding to the cost of banking services for retail customers. Additionally, Axis Bank will withdraw the reward points scheme that currently applies to certain savings account categories, effectively reducing the value proposition for those specific account holders.

These modifications reflect a broader industry trend among Indian banks to rationalize their retail deposit products and improve operational efficiency. The changes are likely to impact a significant portion of Axis Bank's retail customer base, particularly those maintaining lower account balances or conducting frequent cash transactions.

Customers of Axis Bank are advised to review their account terms and plan their banking activities accordingly ahead of the December 1 implementation date. The bank has not publicly disclosed the specific quantum of increases or the exact number of free transactions that will be permitted under the revised structure.