HDFC Bank is reported to be moving to increase fees for carrying out cash-based transactions by its savings account holders. This is a move to discourage cash transactions, an official of the bank has been quoted in news reports. There will be steep increase on charges for certain cash transactions, the official said, adding the bank would also cap cash component in transactions. The new charges become effective from 1 March. The bank publicized on its website that it 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 raised the fee for non-free transactions by a steep 50% to Rs 150., it said on its website. Earlier, it used to allow Rs 50,000 cash transactions, both withdrawals and deposits per day. The bank has also 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 transaction is only Rs 25,000 after which fees set in at the same level.
