HDFC Bank to end agent sourcing of government deposits July
HDFC Bank is making a big shift: by July 2026, it will stop using agents and third-party networks to bring in fixed deposits (FDs) and current or savings account (CASA) funds from government organizations.
The bank says this move is all about tightening operations, following regulations, and making the most of its rapidly growing branch network across thousands of cities.
HDFC Bank denies ₹45cr incentive link
This decision follows a regulatory review around a ₹45 crore incentive paid for FD mobilizations, but HDFC Bank insists that is not the main reason.
Effective July 1, 2026, commissions for bringing in government funds will be stopped, even by accident.
Instead, the bank's focusing on its branch network and BC-BF network to handle retail deposit sourcing, aiming for stronger coverage and less reliance on outside agents.