Higher costs of banking- HDFC bank transaction changes

As you know sometime back RBI changed the way that banks pay interest on funds lying idle in SB accounts - making it daily instead of the earlier time period.

Because of this banks will have a higher interest outflow than what they paid earlier- almost 2X. ( read my previous note here)


So how are banks trying to counter the higher outgo of interest?

In one of the blogs that i usually read-- here are some pointers ( i still need to verify if they are true). These are some changes that HDFC bank is making.

• The number of transactions in a Savings Account is restricted to 100 transactions per half year.  
• 5 cash transactions at branch will be allowed free per month. Every additional transaction will be charged @ Rs 100 per transaction effective 1st July 2010.
• Cheque return charges will be revised effective 1st April 2010 as under:
• First cheque return in a quarter – Rs 350/-
• From second cheque return in the same quarter – Rs 750/- per return
• For accounts not maintaining AQB, Rs 400/- for first cheque return in a quarter and Rs 800/- per return from the second cheque return in the same quarter.

 Now especially when we are trying to automate finances.. these no of transactions which amount to 17/month is extremely low.

Lets find out if the bank is trying to set some of te above rules into motion... if so-- then we need to re-evaluate which banks to really bank with!

if any of you are aware-- let me know

happy investing

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