Aiming to discourage cash transactions, HDFC Bank has announced steep hikes in fees on cash transactions. These would be applicable from March 1 and would apply to salary and savings account holders. Third-party cash transactions have now been limited to Rs 25,000 per day; free cash transactions at branches have been reduced to four from five earlier and fee on non-free transactions has been hiked by a steep 50% to Rs 150.
Changes have also been made to the cash deposit and withdrawal limit at home branches, which will now have an upper limit of Rs 2 lakh. On any transaction above Rs 2 lakh, customers will have to pay a minimum of Rs 150 or Rs. 5 per thousand.
Bank officials said that the steep hike in fees on cash transactions and other measures have been taken to discourage cash transactions and encourage people to choose digital transactions. Bank officials also said that the increased rates reflect the existing trends in the industry and are comparable to the rates and charges of other leading banks such as ICICI, Axis Bank, etc. The Bank’s move is in line with the government’s current focus on curbing the menace of black money and undisclosed income.