Private sector lender HDFC Bank has announced a rise in charges levied for closure of savings bank account.

Along with this, charges on some other services have also been raised. The act seems to be a step by the bank to retain customers from trickling out to rivals.

After deregulation of savings account rates was announced by RBI, HDFC Bank happens to be the first bank to take such a step as to protect its profitability.

As per the current hike, a customer now has to pay Rs 500 for closing a savings bank account and also Rs 500 per month if he failst to meet the average monthly balance requirement of Rs 20,000 in nonurban areas. The charges are however dependent on the nature and tenor of the account.