I have this one experience to narrate for comments and discussion:
I have an account(savings) in Madurai branch and on a particular day I got some money(cash) deposited in my account at another town(Tirunelveli). For this cash deposit in a non-home location I was levied a fee of 1% of the sum deposited(Rs.500 fee plus taxes for a deposit of Rs.50000).
Now, HDFC has their own rules, and I am not arguing on that plane! Some banks even give one cash deposit at a non-home location free each month but no argument that HDFC bank should match that!.
If I had chosen to buy a demand draft and send that instrument to Madurai or any other location for transferring that same money, it would cost a lot less! In receiving a cash deposit into a core banking system, the bank incurrs no extra expense! That is the contadiction here, though the bank spends more resources for issuing a demand draft, they charge a fee that is less than the fee collected for cash deposit! In other words, they charge because there is an opportunity to charge!
Fine, the bank’s policy is to discourage cash transactions! But till such time an alternate method of quick and inexpensive method of transferring funds is available, cash transactions are inevitable and unavoidable. It takes three days for a cheque dropped in HDFC Bank ATM today to show up in my account. What do you think, I should wait for this clearing system or go about withdrawing cash and transacting in cash? Reforms are meaningless if customers are sought to be cornered. There is bound to be a reaction:
It is time we rationalise these things: Further, HDFC bank credit cards levy a fee for cash deposit towards credit card dues! Surprise is it is a lot less than that levied for savings account non-home location deposit! If I deposit the same money in my savings account(same clerk/cahier in the same branch) and issue a cheque of HDFC bank account to the HDFC credit card, then there is no fee! Bank spends on the cheque and processing the cheque in the latter option but still no fee!
God knows the logic but these people sure know the opportunity!
Sirish