As of May 1, 2024, several major Indian banks, including Yes Bank, ICICI Bank, HDFC Bank, and IDFC First Bank are implementing significant changes to their savings account charges and credit card rules. These revisions are expected to impact millions of customers across the country.
HDFC Bank Extends Deadline For Senior Citizens Special FD: HDFC Bank, one of India’s leading financial institutions, has decided to extend the deadline for its senior citizens-only special fixed deposit scheme. Launched in May 2020, the Senior Citizen Care FD offers attractive interest rates exclusively for seniors. The bank has pushed the deadline for investment in this scheme to May 10, 2024.
ICICI Bank Introduces Revised Savings Account Charges: ICICI Bank is set to roll out revised savings account service charges from May 1, 2024. These changes encompass various services, including cheque book issuance, IMPS transactions, ECS/NACH Debit Returns, and stop payment charges.
Here’s a breakdown of the revised savings account charges by ICICI Bank: Annual fees for Debit Cards: Rs 200 per annum for regular locations, Rs 99 per annum for Gramin locations. Cheque Books: Nil for the first 25 cheque leaves in a year; Rs 4 per leaf thereafter. IMPS – Outward Transactions: Rs 2.50 per transaction for amounts up to Rs 1,000; Rs 5 per transaction for amounts above Rs 1,000 to Rs 25,000; Rs 15 per transaction for amounts above Rs 25,000 to Rs 5 lakhs.
ECS/NACH Debit Returns: Rs 500 per instance for financial reasons, with a maximum recovery of 3 instances per month for the same mandate. Stop Payment Charges: Rs 100 per particular cheque (free through customer care IVR & Net banking). Yes Bank Updates Savings Account Charges: Yes Bank has also announced revisions to its savings account charges effective May 1, 2024. The bank has discontinued certain account types and introduced new charges based on Average Monthly Balance (AMB) requirements.
Some key highlights of the revised charges include: Different AMB requirements for various savings account types. Charges are based on the percentage of balance shortfall. ATM cum Debit Card charges for different card types. Revised Savings Account Charges: Yes Bank has introduced a new savings account charges schedule, as outlined on its official website. The revised charges are based on the Average Monthly Balance (AMB) requirement, which varies depending on the type of savings account:
Savings Account PRO Max: AMB requirement of Rs 50,000, with a maximum charge of Rs 1,000. Savings Account Pro Plus / Yes Essence SA / YES Respect SA: AMB requirement of Rs 25,000, with a maximum charge of Rs 750. Savings Account PRO: AMB requirement of Rs 10,000, with a maximum charge of Rs 750. Savings Value / Kisan SA: AMB requirement of Rs 5,000, with a maximum charge of Rs 500.
My First YES: AMB requirement of Rs 2,500, with a maximum charge of Rs 250. The account service charges are structured as follows based on the balance maintained: If the balance is more than or equal to 100% of the requirement, no charges apply. For balances more than 50% of the requirement, a 5% charge of the balance shortfall is applicable.
For balances less than or equal to 50% of the requirement, a 10% charge of the balance shortfall is applicable, with a reduced 5% charge for Savings Value accounts. Additionally, Yes Bank has introduced charges for ATM cum Debit Card usage for savings accounts: Debit Card & Annual Fee Element Debit Card: Rs 299
Engage Debit Card: Rs 399 Explore Debit Card: Rs 599 Rupay Debit Card (Only for Kisan account): Rs 149 At other bank ATMs in India, the first 5 transactions per month remain free, with subsequent charges as follows Financial Transaction: Rs 21 per transaction
Non-financial Transaction: Rs 10 per transaction Credit Card Rules Update Yes Bank has also revised its credit card rules, predominantly affecting the fuel fee category on certain credit card types. The changes are associated with the computation of expenditure levels for remission of annual and joining fees. Notably, utility transactions using Yes Bank credit cards will incur additional charges effective May 1, 2024.
According to the updated rules, a charge of 1% will be applicable on all utility transactions in a statement cycle. Furthermore, when a Yes Bank credit card is used to pay bills exceeding Rs 15,000 in a single statement cycle, GST and a 1% tax will be added. However, no additional fee will be levied when using the Yes Bank Private Credit Card for payments. IDFC First Bank has announced changes to its credit card rules effective May 1, 2024. The bank will impose a 1% + GST extra charge on credit card payments for utility bills exceeding Rs 20,000. Certain credit card types, including the FIRST Private Credit Card, LIC Classic Credit Card, and LIC Select Credit Card, are exempt from this utility surcharge.
These changes highlight the evolving landscape of banking services in India, urging customers to stay informed about updates from their respective banks to manage their finances effectively. Disclaimer: The opinions and suggestions provided above represent the views of individual analysts and do not reflect those of GoodReturns or the author. We recommend investors consult with certified experts before making any investment decisions.
