What is CHC Full Form in Banking?
The CHC’s full form in Banking is Cash Handling Charges. Banks and financial institutions will charge a nominal fee when businesses and individuals make cash deposits in their accounts. These charges cover the costs of manual labor, security, infrastructure, and administrative efforts needed to maintain physical cash. It depends on the nature of the transaction, the institution’s policy, and local restrictions.
When Do Banks Impose Cash Handling Charges?
Some institutions may impose a fee for significant cash withdrawals over the counter. This is especially typical when the requested withdrawal exceeds a specified amount. Individuals or corporations who exchange one currency for another (foreign exchange) in cash incur cash handling charges. When coins are exchanged for paper currency or vice versa, cash handling costs may apply due to the work necessary to count and handle the coins.
Does ATMs And Businesses Deal With Cash Handling Charges?
Payment processors may charge businesses that accept cash payments and cash handling fees.
If the ATM is not affiliated with the customer’s bank, it may impose a convenience fee for cash withdrawals. When there is a regular pickup or delivery of cash to and from banks or cash management businesses, then the cash handling charges are applicable.
