Switch to digital payment: HDFC makes online transaction free

New Delhi, November 7: In a bid to boost digital transactions, a series of banks are mulling over cancelling online transaction fees. HDFC has already made online transaction through RTGS and NEFT free from November 1.

Earlier, customers were levied Rs25 each for Rs2-5 lakh online transaction via RTGS and Rs50 each for such money transfers over Rs5 lakh. Online NEFT transactions attracted a fee of Rs2.5 for less than Rs10,000, Rs5 for Rs 10,001-1 lakh and Rs15 for transactions between Rs1 lakh and Rs2 lakh. For NEFT transactions of over Rs2 lakh, there was a fee of Rs25. Any NEFT or RTGS transaction carried out at the bank branch will be payable.

“The revision in NEFT/RTGS online charges is applicable across all retail savings, salary and non-resident customers effective November 1, 2017,” HDFC Bank said in a notice to customers.

On cheque book issuance, HDFC Bank said a customer can avail one chequebook of 25 leaves free only once in a year in contrast to two such chequebooks. However, the cost of requesting an additional chequebook (25 leaves) has been kept unchanged at Rs75 each.

Also, if a cheque is returned due to insufficient funds, each such cheque will now attract a penalty of Rs500 each. Earlier, for first cheque return in a quarter, Rs350 was levied and for subsequent instances in the same quarter, Rs750 was imposed by the bank. Besides, in cases where cheques deposited are returned unpaid, the charge has been raised to Rs200 per instance from the Rs100 earlier.

“The revision in chequebook and cheque return charges is applicable only to non-managed resident savings and salary customers effective December 1, 2017,” read the bank notice.