Friday, November 14, 2008

HDFC Bank Fraud

While it is important to invest money in right assets, it would do equally better to stay away from some seemingly harmless but actually money depleting instruments like a savings account with HDFC Bank. I hold an HDFC Bank savings account (5k min balance) since last 8 years paying only Rs 100/- per year as Debit card charges (though there is no logic for charging for a single card every year but I live with it as I need that account as well as the card). Last month I opened another account with HDFC in a suburban area when discussing with that branch with min balance of 2.5k. The guy was good and helped me with account opening. However, today I found out (online) that they charged me 500/- for issuing Debit card!!! Now that is equal to float (in banking parlance, money that bank earns from your money lying in a savings account) on a annual 5000/- balance. And the guy never told me about such a high charge. Usually debit cards are free for first year and any deviation from such a policy should be highlighted upfront as beinng told by RBI time and again.
I am highlighting it here and on other forums such as Instablogs, Indianpad etc for benefit of all people who want to open a new savings account with any bank. I request you to please ask upfront about any kind of charges to be levied on that account. As for me, I am heading to write a mail to RBI as well as Banking ombudsman, because I do not want to waste time talking to bank guys only to hear that "I should have asked for schedule of charges".