Archive · 19 Aug 2026
HDFC Bank Shortfall Charge Raises Questions Over RBI Rules
A credit-card customer said he paid almost all of his bill but was charged more than ₹1,200.
He was short by only 46 paise.
He asked HDFC Bank to remove the extra charges.
RBI rules say that not paying the total amount due can affect the interest-free period.
However, interest should be calculated on the outstanding amount, not the whole bill.
Late fees are separate from interest charges.
RBI says late fees generally apply only when an account remains overdue for more than three days.
Very small unpaid amounts may be treated differently depending on the card issuer’s rules.
Dr Samir Kagalkar alleged HDFC Bank charged over ₹1,200 after he paid ₹10,649 against a ₹10,649.46 bill.
The unpaid balance was ₹0.46, and Kagalkar asked the bank to reverse the added charges.
RBI rules state that failing to clear the total amount due can end the interest-free credit period.
Interest may be charged on the outstanding amount, but RBI says it cannot be charged on the total amount due.
Late-payment charges or “past due” reporting generally require an account to remain overdue for more than three days and must apply to the outstanding amount.
- Who
- Dr Samir Kagalkar, HDFC Bank, the Reserve Bank of India, and credit-card issuers are mentioned.
- What
- A customer alleged that HDFC Bank charged over ₹1,200 after a 46-paise shortfall on his credit-card bill, prompting discussion of RBI rules.
- When
- The article does not specify when the payment or alleged charge occurred.
- Where
- The allegation was posted on X; the article concerns credit-card practices in India.
- Why
- The issue arose over how interest and late-payment charges are calculated when a customer does not pay the total amount due in full.
Customer Concern
RBI Rules and Issuer Terms
Charge for a tiny shortfall
Customer Concern
Kagalkar questioned why a 46-paise unpaid balance resulted in more than ₹1,200 in additional charges and requested a reversal.
RBI Rules and Issuer Terms
The article does not report HDFC Bank’s response. It notes that the treatment of very small shortfalls can depend on the issuer’s terms and threshold.
How interest should be calculated
Customer Concern
The incident raised concern about whether a nearly complete payment could trigger charges based on the full bill.
RBI Rules and Issuer Terms
RBI says interest may apply after the interest-free period is lost, but it must be charged on the outstanding amount rather than the total amount due.
Late-payment fees
Customer Concern
The allegation prompted questions about whether late fees were applied appropriately to the small unpaid balance.
RBI Rules and Issuer Terms
RBI says late-payment charges or past-due reporting generally require the account to remain overdue for more than three days and must be based on the outstanding amount.
- Bank named
- HDFC Bank
- Customer allegation
- A charge exceeding ₹1,200 followed a ₹0.46 shortfall.
- Bill amount
- ₹10,649.46
- Amount paid
- ₹10,649
- RBI interest rule
- Interest may be charged after the interest-free period is lost, but not on the total amount due.
- Late-charge timing
- An account must generally remain past due for more than three days before late-payment charges or past-due reporting.
- Small shortfalls
- Their treatment can depend on the card issuer’s terms and any threshold it applies.