HDFC Bank has decided to increase the fees for savings account holders on a slew of activities involving cash, to discourage cash transactions. The country’s second-largest private sector lender has decided to steeply raise the charges on certain transactions, capping cash component in others and also introducing charges on certain transactions from March 1.
The Bank has capped the third-party transactions at Rs 25,000 a day, reduced the number of free cash transactions at branches to four from five earlier and also raised the fee for non-free transactions by a steep 50 per cent to Rs 150. Earlier, it used to allow Rs 50,000 cash transactions, on both withdrawals and deposits per day, adding the review is only for salary and savings accounts.
Meanwhile, the Bank has capped the free cash transactions at home branches, including deposits and withdrawals at branches at Rs 2 lakh, above which customers will have to pay a minimum of Rs 150 or Rs 5 per thousand. For non-home branches, the free transactions are only Rs 25,000 after which fees set in at the same level.