New series of changes are around the corner for India’s largest bank by market capitalization, HDFC Bank. Starting August 1, 2024, all the rental transactions processed through third-party payment apps such as PayTM, CRED, MobiKwik, and Cheq will incur a 1% fee on the transaction amount, capped at ₹3,000 per transaction.
New Fee Structures and Charges for HDFC Bank Transactions Starting August 2024
When it comes to rental payments, such a change introduces a new layer of cost for customers using these popular apps for rental payments.
There shall be a bifurcated fee structure for the utility transactions. Though there shall be no impact for transactions below ₹50,000; but the ones which exceed the amount shall be subject to a 1% fee, also capped at ₹3,000 per transaction.
Offering respite to customers managing insurance payments is the fact that insurance-related transactions are exempt from these new charges.
There shall be a 1% fee for amounts above ₹15,000 for fuel transactions. Notably, there shall be a maximum fee cap of ₹3,000 per transaction. While the smaller transactions continuing to be fee free, this change shall be applicable for larger fuel purchases.
The Educational payments made via third-party apps such as CRED and PayTM will also see a 1% fee, with a similar ₹3,000 cap per transaction. However, payments made directly through educational institutions’ websites or POS machines will not incur this fee, and international educational payments are excluded from this new charge.
There shall be a 3.5% mark-up fee on all cross-currency transactions by HDFC Bank on all international transactions, which shall significantly affect the customers who frequently make purchases or payments abroad.
In addition to this, there have been revisions on the late payment fee structure which ranges from ₹100 to ₹300 based on the outstanding amounts. This change is designed to encourage timely payments and reduce overdue balances.
Adding a minor expense to the benefits redemption process, there shall be a cost of ₹50 while redeeming reward points for statement credit or cashback.
Higher Finance Charges, New Easy-EMI Fees, and Revised Reward Structures
For those who are utilizing revolving credit facilities, a finance charge of 3.75% per month will be applied, calculated from the transaction date until the outstanding balance is fully paid.
This change underscores the importance of prompt payment to avoid accruing significant interest charges.
Customers that are opting for the Easy-EMI facility shall face a processing fee of up to ₹299 for availing this option at any online or offline store, making it slightly more expensive to convert purchases into EMIs.
The reward structure for Tata Neu Infinity and Tata Neu Plus credit card holders has also been updated.
Users of the Tata Neu Infinity HDFC Bank Credit Card will earn 1.5% NeuCoins on eligible UPI transactions made using the Tata Neu UPI ID, while transactions with other eligible UPI IDs will earn 0.50% NeuCoins. Similarly, Tata Neu Plus HDFC Bank Credit Card holders will earn 1% NeuCoins on eligible UPI transactions with the Tata Neu UPI ID and 0.25% NeuCoins for transactions using other eligible UPI IDs.
