Originally Posted by pkphilip

HDFC Bank has this completely unfair and arbitrary policy of charging Rs.100/- per transaction if a savings account holder conducts more than 5 cash transactions per month - even if the money was withdrawn over an ATM. This is completely unfair for the following reasons:
1. An average Indian has to pay a lot of money as cash. A single's day transportation costs can easily exceed Rs.100/- to Rs.150/- and the auto driver isn't going to be accepting cheques anytime soon. So in a single week a person can incur an expense of Rs.500 to Rs.750/- for transportation alone easily.
2. There are other cash payments needed - example: purchasing food, grocery, disposal of garbage each month etc... not everyone accepts credit cards and cheques.. especially for small purchases.

So in an average week, a person can easily exceed Rs.1000/- in expenses which has to be paid by cash. So it isn't unusual when a person needs to visit the ATM more than once a week.. and when they do visit the ATM, it is unreasonable to ask them to withdraw large amounts of cash per transaction for the following reasons:

1. People who travel by public transportation or living in shared accommodation cannot afford to keep large amounts of cash on their person or with their baggage.

2. What is the point in paying the bank for a savings account when you have to keep a large amount of cash with you in any case?

For the reasons stated above, it would be common for most people to need to visit the ATM more than once a week.. and that too for withdrawing small sums of money.. that is around Rs.1000/- per transaction or less.. and then to have Rs.100/- deducted per transaction means that the bank gets more than 10% on each such transaction. That is completely unfair.

HDFC Bank must withdraw this arbitrary limit on cash transactions immediately. Else it is gross deficiency of service and it also amounts to charging the terms of the contract with the clients after the contract has already been signed.

Dear customer,

We would like to take this opportunity to inform you that all transactions at an HDFC Bank ATM are free. Additionally, 5 free transactions are also allowed per month at non-HDFC Bank ATMs. From the sixth transaction onwards, a charge of Rs. 20 (plus tax) per transaction is applicable. We would like to assure you that all these charges are in line with the RBI's guidelines and are further published on the fee schedule on our website: HDFC Bank - Leading Bank in India, Banking Services, Private Banking, Personal Loan, Car Loan


Regards, Customer Assistance, HDFC Bank