"Dear HDFC Bank credit card member, the fee for cash payment made at HDFC Bank branches or ATMs will be revised to Rs 100, effective November 1," read text messages and emails the private lender sent to its customers.
Currently, the bank charges Rs 50 as cash processing fee. Sources confirmed the service charge would be raised in November, adding the bank had kept other charges related to credit card transactions unchanged.
They said other large private and foreign lenders had already raised credit card transaction fees in recent months.
ICICI Bank and Citibank charge a service charge of Rs 100 for credit card repayments through cash at their branches.
Bankers said the move was aimed at encouraging customers to us online services offered by banks.
"These are small transactions and should be done through net banking or other online services. We want customers to become savvy," said a senior official with a private bank, on condition of anonymity.
Earlier this year, large private lenders in the country had increased service charges on savings accounts, including penalties for inoperative accounts, cash deposits over particular amounts in bank branches and mobile transfer fees.