In a significant legal development, the Bombay High Court has overturned a magistrate's order that had issued a defamation notice to Sashidhar Jagdishan, the Managing Director and CEO of HDFC Bank . Justice SM Modak, presiding over the case, ruled that the magistrate had erred in issuing the notice without following proper procedural requirements.

Legal Procedural Error Highlighted

The court found that the magistrate had failed to record the verification of the complainant and witnesses before issuing the defamation notice. This step is mandated under the Bharatiya Nagarik Suraksha Sanhita, 2023, and its omission led to the quashing of the order.

Background of the Case

The defamation complaint was originally filed by the trustee of Lilavati Kirtilal Mehta Medical Trust under the Bharatiya Nyay Sanhita, 2023. While the specifics of the allegations against Jagdishan were not detailed in the court's decision, the case highlights the importance of adhering to proper legal procedures in defamation cases.

Court's Ruling and Future Proceedings

In its ruling, the Bombay High Court set aside the magistrate's order. However, Justice Modak clarified that this decision does not prevent the trial court from proceeding with the case. The court emphasized that the case can move forward once the proper verification procedures, as required by law, are followed.

Implications of the Ruling

This ruling underscores the significance of procedural compliance in legal proceedings, especially in cases involving high-profile corporate executives. It also serves as a reminder of the safeguards in place to ensure fair legal processes in defamation cases.

The court explicitly stated that it did not comment on the merits of the allegations against Jagdishan, leaving the door open for potential future legal proceedings if the proper procedures are followed.

As this legal matter unfolds, it will be closely watched by the banking and legal communities, given HDFC Bank's prominence in India's financial sector and the high-profile nature of the case involving its top executive.

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.