HDFC Bank Announces 4 Major Changes: Key Updates Customers Must Know

HDFC Bank has rolled out several important updates that could directly impact its customers across India. The bank has revised key policies related to loan interest rates, fixed deposit returns, ATM transactions, and safe deposit locker charges. While some changes are already in effect, others will come into force from April 1, 2026. Here is a detailed look at the four major updates customers should be aware of.

1. MCLR Cut Likely to Reduce Loan EMIs

The bank has lowered its marginal cost of funds-based lending rate (MCLR) by 10 basis points, making loans slightly cheaper for borrowers. The revised rates became effective from March 7, 2026.

Following the change:

• Overnight and one-month MCLR have been reduced from 8.25% to 8.15%
• Three-month MCLR has decreased from 8.30% to 8.25%
• Six-month and one-year MCLR have dropped from 8.40% to 8.35%
• Two-year MCLR has been reduced from 8.50% to 8.45%
• Three-year MCLR has been lowered from 8.60% to 8.55%

This revision could benefit borrowers whose loans are linked to the MCLR system. With the reduction in lending rates, eligible customers may see a slight decrease in their EMIs, offering some financial relief.

2. Fixed Deposit Interest Rates Revised

The bank has also updated interest rates on fixed deposits for certain tenures. The change mainly applies to deposits with a maturity period between 3 years 1 day and 4 years 7 months.

Key revisions include:

• Interest rate increased from 6.40% to 6.50% for general customers
• For senior citizens, the rate has risen from 6.90% to 7%

At present, the bank offers FD interest rates ranging from:

• 2.75% to 6.50% for general customers
• 3.25% to 7% for senior citizens

This increase may make fixed deposits slightly more attractive for investors seeking stable and secure returns.

3. ATM Withdrawal Rules to Change from April 1

Another important change relates to ATM transactions. From April 1, 2026, cash withdrawals through UPI at ATMs will be counted within the monthly free transaction limit.

Once customers exceed the allowed number of free transactions:

• A charge of Rs 23 plus applicable taxes will apply per additional withdrawal.

This update means customers using UPI-enabled ATM withdrawals will need to keep track of their monthly transaction limits to avoid extra charges.

4. Locker Rental Charges to Be Revised

HDFC Bank has also announced changes to its safe deposit locker rental structure, which will take effect from April 1, 2026.

Key highlights include:

• Introduction of a new category called Metro Plus
• Locker rents will now depend on locker size and branch location
• Branch categories will include Metro Plus, Metro, Urban, Semi-Urban, and Rural
• An 18% GST will continue to apply on locker rental charges

The revised structure aims to standardise locker pricing based on location and facility category.

What These Changes Mean for Customers

The latest policy updates from HDFC Bank could affect millions of customers. Borrowers may benefit from slightly lower loan EMIs, while depositors may see better FD returns for select tenures. However, ATM users and locker holders should prepare for new transaction rules and revised locker charges starting April 1, 2026.

Customers are advised to review these updates carefully and plan their banking transactions accordingly.