HDFC Bank , one of India's leading private sector banks, has implemented a comprehensive revision of its fee structure for savings, salary, and non-resident accounts, effective August 1. The changes encompass a wide range of services, including cash transactions, cheque books, and digital payments.

Cash Transaction Limits Reduced

The bank has significantly lowered the free monthly cash transaction limit from ₹2.00 lakh to ₹1.00 lakh per account. This new limit applies to both self and third-party transactions conducted at branches or cash recycler machines.

Cheque Book Allocation Changes

HDFC Bank has also made adjustments to its cheque book policy. The free annual allocation has been reduced from 25 leaves to 10 leaves per year. Customers requiring additional cheque books will now be charged ₹4.00 per leaf.

Digital Payment Charges Revised

IMPS Transactions

In a move that benefits customers making smaller transactions, HDFC Bank has reduced the charges for Immediate Payment Service (IMPS) transfers:

• Transfers up to ₹1,000.00 now cost ₹2.50 for regular customers, down from the previous ₹3.50.

NEFT Transactions

The bank has also adjusted its National Electronic Funds Transfer (NEFT) branch transaction charges across various slabs, though specific details were not provided.

Other Service Charge Modifications

1. IPIN Regeneration: This service is now free, previously charged at ₹40.00 for regular customers.

2. Branch Service Fees:

   • Balance certificates now cost ₹100.00 for regular customers, an increase from the previous rate.

3. ECS Return Charges: These have increased by ₹50.00 across all instances.

4. Cheque Return Charges: For financial reasons, these charges have also seen an increase.

Impact on Customers

These changes are likely to affect a large number of HDFC Bank customers across various account types. While some modifications, such as the reduced IMPS charges for small transactions and free IPIN regeneration, may benefit customers, others like the reduced cash transaction limits and increased cheque return charges could potentially lead to higher banking costs for some users.

Customers are advised to review these changes carefully and adjust their banking habits accordingly to minimize additional charges. HDFC Bank's move reflects the ongoing trend in the banking sector to rationalize service charges and encourage digital transactions.

As always, account holders should stay informed about their bank's fee structure and explore the most cost-effective ways to manage their finances within these new parameters.

HDFC Bank , one of India's leading private sector banks, has announced a significant reduction in its Marginal Cost of Funds-based Lending Rates (MCLR), potentially easing the financial burden on borrowers across various loan tenures.

Key Rate Changes

The bank has implemented rate cuts of up to 5 basis points across different loan tenures, with the most notable change being a substantial 30 basis point reduction in the one-year MCLR. Following these adjustments, HDFC Bank's MCLR now spans from 8.55% to 8.75%, down from the previous range of 8.60% to 8.80%.

Breakdown of MCLR Revisions

Impact on Borrowers

These rate reductions are expected to benefit customers with MCLR-linked loans, as they will see a decrease in their borrowing costs. The most significant impact will be felt by those with one-year MCLR-linked loans, given the substantial 30 basis point cut in this category.

Context of the Rate Cut

The bank's decision to lower its MCLR comes in the wake of the Reserve Bank of India (RBI) maintaining the repo rate at 5.5%. This move by HDFC Bank could be seen as a response to the broader interest rate environment and an effort to remain competitive in the lending market.

HDFC Bank's Home Loan Rates

While the MCLR has seen a reduction, it's worth noting that HDFC Bank's home loan rates currently range from 7.90% to 13.20%. This range applies to both salaried and self-employed borrowers, offering a wide spectrum of options based on individual credit profiles and loan requirements.

Conclusion

HDFC Bank's decision to cut MCLR rates is a welcome move for borrowers, potentially leading to reduced EMIs on various types of loans. As the banking sector continues to navigate the current economic landscape, such rate adjustments play a crucial role in influencing borrowing patterns and overall credit growth in the economy.