HDFC Bank Announces 4 Significant Changes for Customers
HDFC Bank has unveiled four major changes affecting millions of customers, including reduced MCLR, increased FD interest rates, altered ATM withdrawals, and rising locker costs, all taking effect in April 2026.
Highlights
- •HDFC Bank has reduced MCLR rates, making loans cheaper for MCLR-linked customers.
- •The bank increased FD interest rates for specific maturity periods, benefiting senior citizens and certain high-value deposit holders.
- •As of April 1, 2026, UPI cash withdrawals will be included in the monthly free transaction limit, and any excess will be charged.
- •Locker rental rates will be restructured with new categories and an 18% GST, effective from April 1, 2026.
HDFC Bank has announced a series of significant changes for its customers, impacting millions across the country. The bank has reduced its loan interest rates and increased deposit interest rates, changed ATM withdrawal rules, and announced higher locker rental charges.
Firstly, HDFC Bank has reduced its marginal cost of funds-based lending rate (MCLR) by 10 basis points, making loans cheaper for affected customers. The new rates take effect from March 7, 2026, decreasing overnight and one-month MCLR from 8.25% to 8.15%, and three-month MCLR from 8.30% to 8.25%. Other rates have also been reduced, creating room for EMI relief for those on MCLR-linked loans.
Secondly, HDFC Bank has raised interest rates on Fixed Deposits (FDs) with certain maturity periods, increasing interest to 6.50% for FDs with 3 years 1 day to 4 years 7 months. For senior citizens, the interest rate rises to 7%, while existing rates for general customers range from 2.75% to 6.50%.
Thirdly, HDFC Bank has implemented new ATM withdrawal rules, effective from April 1, 2026, which include UPI cash withdrawals in the monthly free transaction limit. Any excess fees will apply for additional transactions.
Finally, HDFC Bank has decided to revise locker rental charges, effective from April 1, 2026. The new system will be based on locker size and branch location, introducing new categories like Metro Plus, Metro, Urban, Semi-Urban, and Rural. These charges will carry an 18% GST.
