HDFC Bank has made a big change in the rules of cash transactions for its savings account holders. Now customers will get only up to Rs 1 lakh cash transactions (both self and third-party) free every month, whereas earlier this limit was Rs 2 lakh.
The number of free transactions will remain four as before, but after this, Rs 150 will be charged on every cash transaction. This decision of the bank can have a direct impact on the pockets of small and middle-class customers. This and several other changes in rules, discussed in detail in this story, are effective from August 1.
A third-party cash transaction means depositing or withdrawing cash from a bank account by someone other than the account holder (like a relative, friend, or agent).
New rules on cash transactions
-Now only 4 free cash transactions will be available on every account.
-For doing more than 4 transactions, Rs 150 will have to be paid per transaction.
- After the free limit, Rs 5 per Rs 1,000 or minimum Rs 150 charge will be levied on cash transactions.
- The daily limit for third-party cash transactions will remain Rs 25,000 only.
Charges on fund transfer also changed
NEFT transfer charges
-Up to Rs 10,000: Rs 2
-Rs 10,000 to Rs 1 lakh: Rs 4
-Rs 1 lakh to Rs 2 lakh: Rs 14
-More than Rs 2 lakh: Rs 24
RTGS transfer charges
-Rs 2 lakh to Rs 5 lakh: Rs 20
-More than Rs 5 lakh: Rs 45
IMPS transfer charges
-Up to Rs 1,000: Rs 2.50
-Rs 1,000 to Rs 1 lakh: Rs 5
-More than Rs 1 lakh: Rs 15
ECS and ACH return charges
-First time return: Rs 450 (senior citizen – Rs 400)
-Second time: Rs 500 (senior citizen – Rs 450)
-Third time onwards: Rs 550 (senior citizen – Rs 500)
Impact on other services
-Balance certificate, interest certificate or address confirmation – Rs 100 (senior citizen – Rs 90).
-Old record copy or copy of paid cheque – Rs 80 (senior citizen – Rs 72).
IPIN regeneration is now absolutely free, whereas earlier it was charged Rs 40.
Chequebook rules
Now only one chequebook of 10 pages will be available free in a year on savings account. Earlier 25 pages of free chequebook was available. After this, Rs 4 will be charged for every additional page (there will be a slight discount for senior citizens).
Overall, these new rules of HDFC Bank will directly affect those customers who frequently visit the branch and use cash transactions or other banking services.
ICICI Bank revises MAB requirement for new savings accounts
Meanwhile, ICICI Bank, after receiving a massive backlash last week, revised the minimum balance requirement for new savings accounts. The bank had recently increased the minimum balance to Rs 50,000, after which people criticized the bank’s move strongly. Customers also expressed their angst on social media against the bank hiking the Minimum Account Balance so steeply. Now the bank has changed its decision and reduced the minimum balance amount to Rs 15,000.