One of the leading private sector banks in India, HDFC Bank has announced an increase in one of the components of processing charges on credit cards. It has hiked the charges on making cash payments towards credit card bills to Rs. 100, from the existing fee of Rs. 50. The new payment charges will be applicable from the next month onwards.
The bank issued a circular notifying the same to its customers. The circular said that the charges for repayments made on credit card bills by depositing cash at its branches or through ATMs have been increased to Rs. 100, which will come into effect from November 1, 2012.
It is reported that HDFC Bank is the largest credit card issuer in India, with a market share of 32 percent of the total outstanding credit cards in the country.
For repaying credit card dues, customers can use a number of modes like internet banking, by depositing cheques or by depositing cash at its branches and ATMs across the country. The bank has a 2, 500 strong branch network in India and about 9, 000 fully equipped ATMs.
It is reported that about one - third of credit card holders in the country settle their dues by paying cash at their respective bank branches or ATMs. The processing of these payments require a lot of manual work as these are branch level transactions and this is the reason for charging customers for paying credit card dues by paying cash.