HDFC Bank, India’s largest private lender by market capitalisation, has announced a series of changes in its service rules for savings account holders. These changes will directly impact the way customers manage their money, especially those who prefer frequent cash transactions at bank branches.
Under the new structure, customers are now entitled to four free cash transactions every month, as before. However, the free monthly cash transaction limit has been reduced from two lakh rupees to one lakh rupees. Once this limit is exhausted, every additional transaction will attract a charge of one hundred and fifty rupees. This move is expected to hit small and middle class customers the hardest, as many of them rely on cash deposits and withdrawals for their day to day needs.
The bank has also clarified that third party transactions, where cash is deposited or withdrawn by someone other than the account holder, will remain capped at twenty five thousand rupees per day. Beyond this limit, customers will not be able to carry out such transactions, reflecting the bank’s focus on security and tighter monitoring.
Service charges for electronic fund transfers have also been revised. For NEFT transactions, customers will pay two rupees for transfers up to ten thousand rupees, four rupees for transfers between ten thousand and one lakh rupees, and fourteen rupees for transfers up to two lakh rupees. Transfers above this threshold will be charged twenty four rupees. RTGS transfers will now cost twenty rupees for amounts between two lakh and five lakh rupees, and forty five rupees for anything higher. IMPS transactions will cost two and a half rupees for amounts up to one thousand rupees, five rupees for amounts up to one lakh, and fifteen rupees for transactions above one lakh.
Other service related charges have also been updated. Customers who request balance certificates, interest certificates or address confirmation will now pay one hundred rupees per request, with senior citizens receiving a small discount. Copies of old records or paid cheques will cost eighty rupees, slightly less for senior citizens. On the positive side, IPIN regeneration, which earlier carried a charge of forty rupees, is now completely free.
Chequebook facilities have also undergone a revision. Savings account holders will now receive only one free chequebook with ten leaves in a year, compared to twenty five leaves earlier. Additional pages will be charged at four rupees each, with concessions for senior citizens.
These changes, while part of the bank’s effort to rationalise operations and encourage digital transactions, will likely raise concerns among customers who still depend heavily on cash or physical banking services. For many in smaller towns and semi urban areas, branch visits remain a necessity, and higher charges could mean increased costs of maintaining an account.
HDFC Bank’s move also comes at a time when other banks are making adjustments to their service rules. Just last week, ICICI Bank faced strong criticism after increasing its minimum account balance requirement to fifty thousand rupees, forcing it to roll back and revise the limit down to fifteen thousand rupees after customer backlash. These developments highlight the growing sensitivity around banking fees and the need for institutions to balance profitability with customer expectations.
The changes introduced by HDFC Bank are a reminder for customers to be more mindful of how they use their accounts. Digital payments, UPI transfers, and online banking options may help many avoid additional costs. However, for those who rely on physical banking, these charges will add up quickly, making it important to plan transactions carefully.
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