HDFC Bank Raises Service Charges for Savings and Salary Customers
HDFC Bank, India’s largest private sector bank, has rolled out a significant revision to its service charges, affecting savings, salary, and non-resident (NR) account holders. Effective from August 1, 2025, these changes include reduced free transaction limits, increased fees for cash transactions, cheque services, and electronic fund transfers, as well as a hike in the minimum balance requirement for new accounts. With customers already navigating rising costs, these updates have sparked debates about affordability and banking accessibility, especially for middle-class and salaried individuals. Let’s break down the key changes, their impact, and what customers can do to adapt.
Key Changes to HDFC Bank’s Service Charges
HDFC Bank’s revisions touch several core banking services, reflecting a broader trend among private banks to adjust fee structures amid evolving economic conditions. Here’s a detailed look at the updates:
1. Reduced Free Cash Transaction Limits
- Previous Limit: Up to ₹2 lakh per month for self and third-party cash transactions (deposits and withdrawals) at branches or cash recycler machines were free, with four free transactions monthly.
- New Limit: The free monthly transaction value has been slashed to ₹1 lakh per account. Beyond the four free transactions, a fee of ₹150 per transaction applies. For transactions exceeding the ₹1 lakh limit, a charge of ₹5 per ₹1,000 (or part thereof, minimum ₹150) is levied.
- Third-Party Transactions: The daily cap for third-party cash transactions remains ₹25,000, with no transactions permitted above this amount.
2. Cheque Book Charges
- Previous Policy: Accounts, including Basic Savings Bank Deposit Accounts (BSBDA), received 25 free cheque leaves annually.
- New Policy: Only one cheque book of 10 leaves per year is now free. Additional cheque books cost ₹4 per leaf (₹40 for 10 leaves for regular customers, ₹36 for senior citizens), compared to the earlier ₹100 for 25 leaves (₹75 for senior citizens).
3. Electronic Fund Transfer Fees (NEFT, RTGS, IMPS)
- NEFT (Branch Transactions):
- Up to ₹10,000: ₹2 (₹1.80 for senior citizens)
- ₹10,001–₹1 lakh: ₹4 (₹3.60 for senior citizens)
- ₹1,00,001–₹2 lakh: ₹14 (₹12.60 for senior citizens)
- Above ₹2 lakh: ₹24 (₹21.60 for senior citizens)
- Previous Rates: ₹2 for up to ₹1 lakh (₹1.80 for senior citizens), ₹10 for above ₹1 lakh (₹9 for senior citizens).
- RTGS (Branch Transactions):
- IMPS (Online Transactions):
- Up to ₹1,000: Reduced to ₹2.50 (₹2.25 for senior citizens) from ₹3.50 (₹3)
- ₹1,001–₹1 lakh: ₹5 (₹4.50 for senior citizens, previously ₹3 for seniors)
- Above ₹1 lakh: ₹15 (₹13.50 for senior citizens, previously ₹10 for seniors)
- Note: Preferred banking and Speciale Gold/Platinum account holders enjoy nil IMPS charges.
4. ECS/ACH and Cheque Return Charges
- ECS/ACH Returns:
- First return: ₹500 (₹450 for senior citizens, up from ₹450/₹400)
- Second return onwards: ₹550 (₹500 for senior citizens, previously ₹500/₹450 for second, ₹550/₹500 for third onwards)
- Cheque Returns (Financial Reasons):
- First return: ₹500 (₹450 for senior citizens)
- Second return onwards: ₹550 (₹500 for senior citizens)
- Technical Returns: ₹50 (₹45 for senior citizens, unchanged). Technical reasons include missing dates, post-dated cheques, or signature mismatches.
5. Certificate and Record Retrieval Fees
- Balance Certificate, Interest Certificate, Address Confirmation: Previously free, now ₹100 per instance (₹90 for senior citizens) when availed physically at branches.
- Old Records/Copy of Paid Cheques: Increased from ₹80 (₹72 for seniors) to ₹100 (₹90 for seniors) per instance.
6. Minimum Balance Requirement Hike
- New Accounts (Post-August 1, 2025):
- Metro and urban branches: Minimum balance raised from ₹10,000 to ₹25,000.
- Semi-urban areas: ₹25,000.
- Rural areas: ₹10,000.
- Exemptions: High-net-worth individuals (HNIs) and corporate salary account holders with a monthly net salary credit of ₹1 lakh or above are exempt. Basic Savings Bank Deposit Accounts (BSBDA) and other statutory zero-balance accounts remain unaffected.
7. Other Changes
- IPIN Regeneration: Now free, down from ₹40 (₹36 for seniors).
- Senior Citizen Benefits: All service charges are waived for customers above 80 years of age, effective since April 2022.
| Service | Old Charges | New Charges (Regular/Senior) |
|---|---|---|
| Free Cash Transaction Limit | ₹2 lakh/month | ₹1 lakh/month |
| Excess Cash Transaction | ₹150 | ₹150 + ₹5/₹1,000 (min ₹150) |
| Cheque Book | 25 leaves free/year | 10 leaves free/year; ₹4/leaf thereafter |
| NEFT (Above ₹2 lakh) | ₹10 | ₹24 (₹21.60 for seniors) |
| RTGS (Above ₹5 lakh) | ₹15 | ₹45 (₹40.50 for seniors) |
| IMPS (Up to ₹1,000) | ₹3.50 | ₹2.50 (₹2.25 for seniors) |
| Balance Certificate | Free | ₹100 (₹90 for seniors) |
Impact on Customers
These changes hit hardest for middle-class and salaried customers, particularly those with limited banking activity or lower balances:
- Increased Costs for Small Transactions: The reduced free cash transaction limit (₹1 lakh) and higher NEFT/RTGS fees make frequent or high-value transactions costlier, especially for small businesses and individuals reliant on branch services.
- Minimum Balance Burden: The ₹25,000 minimum balance requirement for new accounts in metro/urban areas is a steep jump, potentially pushing customers toward zero-balance accounts or other banks with lower thresholds, like SBI or Canara Bank, which have eliminated some minimum balance penalties.
- Cheque and Certificate Costs: The shift from free to paid certificates and reduced free cheque leaves adds up for customers who rely on physical banking, disproportionately affecting those less comfortable with digital alternatives.
- Mixed Bag for Digital Users: While IMPS charges for small transactions have slightly decreased, the hikes in NEFT and RTGS fees could offset savings for frequent online transfers.
Senior citizens and premium account holders (e.g., Speciale Gold/Platinum) fare better, with discounted rates and exemptions, but the average customer faces a tighter financial squeeze. Posts on X highlight frustration, with users calling the hikes “anti-customer” and urging switches to public sector banks or digital-only platforms like Jupiter.
Why the Changes?
HDFC Bank’s revisions align with industry trends, as seen with ICICI Bank’s recent hike in minimum balance to ₹50,000 for new metro/urban accounts. Possible reasons include:
- Rising Operational Costs: Banks face higher expenses due to inflation, tech investments, and regulatory compliance.
- Revenue Diversification: With the Reserve Bank of India (RBI) maintaining repo rates, banks like HDFC are tweaking fee structures to boost non-interest income.
- Targeting Affluent Customers: The minimum balance hike suggests a shift toward high-net-worth clients, similar to ICICI’s strategy.
However, critics argue these moves risk alienating middle-class customers, especially as public sector banks like SBI and PNB promote financial inclusion by waiving minimum balance penalties.
What Can Customers Do?
To navigate these changes, consider the following:
- Go Digital: Use online banking for NEFT/IMPS to minimize branch-related fees. IPIN regeneration is now free, making digital access easier.
- Monitor Transactions: Stay within the ₹1 lakh free cash limit and four free transactions to avoid extra charges.
- Opt for Zero-Balance Accounts: BSBDAs or salary accounts with active payroll credits are exempt from minimum balance rules.
- Compare Banks: Explore public sector banks or digital platforms like Fi Money or Jupiter, which may offer lower fees or no minimum balance requirements.
- Leverage Senior Citizen Benefits: If over 80, ensure you’re registered for full charge waivers.
The Bigger Picture
HDFC Bank’s fee revisions reflect a broader shift in India’s private banking sector toward premiumization, potentially at the cost of accessibility for average customers. While the bank offers exemptions for HNIs and corporate salary accounts, the changes could push smaller account holders toward competitors or digital alternatives. The RBI has clarified that banks can set their own minimum balance rules, but the contrast with public sector banks’ inclusive policies raises questions about fairness.
As these charges reshape banking habits, customers must weigh convenience against cost. Have you been affected by these changes? Share your thoughts or strategies in the comments below!
