Credit Card Cash Withdrawal Charges of 14 Indian Banks
In order to improve customer experience, credit card issuing banks in India offers various facilities or freebies to their customers. These include:
- Free credit period
- Reward points
- Cashback
- Joining benefits
- Zero joining fee
- Zero annual fee
- Cash advance or withdrawal
- Ease of bill payment
- Insurance and many others
However, all of the above features are not offered for free and it involves charges which customers are not aware of or are not told by the banks. That is the reason why terms and conditions should always be read by the customer as it contains all the hidden charges by the banks.
We’ll discuss about credit card cash withdrawal and various transaction charges levied by the banks when the card is used at domestic and international ATMs. Ofcourse, in the time of need when you do not have debit card or cash, credit cards can be used to withdraw emergency cash.
Below is the table showing transaction charge on cash withdrawal:
| Card Issuing Bank | Domestic ATM Cash Withdrawal Charge (% of withdrawn amount) | International ATM Cash Withdrawal Charge (% of withdrawn amount) | Other Charges on Withdrawal |
|---|---|---|---|
| HDFC Bank | 2.5% or Rs. 300 whichever is higher | NA | Finance charge equal to charges on revolving credit from the date of withdrawal until date of full payment |
| State Bank of India | 2.5% or Rs. 300, whichever is higher | 3% or Rs. 300, whichever is higher | Monthly & annual charges 3.35% p.m. & 40.2% per annum, respectively from withdrawn date till the settlement date |
| Axis Bank - Other Cards | 2.5% (Min. Rs 250) | NA | NA |
| Axis Bank - Easy Card | Rs. 100 | 2.5% (Minimum Rs. 250) | NA |
| Citibank | 2.0%, minimum Rs.300 | US $7.5 | NA |
| ICICI Bank | 2.5% (Min. Rs 250) | NA | 2.95% per month (APR 41.75% per annum) |
| HSBC Bank | 2.5% (Min. Rs 300) | NA | NA |
| Canara Bank | 3%, minimum of Rs. 30/- for every Rs. 1000 or part thereof | NA | NA |
| Andhra Bank | 3% | NA | NA |
| Bank of Baroda | 2.5% (Min. Rs 200) | 3% (Min. Rs 250) | NA |
| Corporation Bank | 2.5% (Min. Rs 150) | NA | The service charge is currently upto 2.50% per month for Classic Card and 2.25% per month for Gold Card |
| Dena Bank | Higher than 2.5% (Min. Rs 300) | Higher than 3% (Min. Rs 300) | NA |
| Indian Overseas Bank | Rs. 22. 50 per Rs. 1000 /- or part thereof | NA | 24% (Annualized) from the date of the withdrawal till settlement date |
| Oriental Bank of Commerce | 2.5% (or Rs 300), whichever is the highest | 3% (or Rs. 250), whichever is the highest | NA |
| Punjab National Bank | 2% or Rs.50/-whichever is higher (at PNB ATM) 2% or Rs.75/-whichever is higher (at other ATMs) | 2% (or Rs. 150), whichever is the highest | NA |
In the above table NA refers information is not available.
Important points to remember:
- Grace period which is offered by the banks when credit card is used for any type of shopping is not applicable to cash advance and the customer gets charged right from the day cash is withdrawn. This charge is 24%-48% p.a. on the amount.
- Moreover as you can see from the above table, when card is used at ATM in any abroad country, then there is a little higher charge compared to when used domestically.
- Also is withdrawal is made for amount higher than the card limit, then be ready to pay additional charge.
All the above mentioned charges are subject to change from time to time by the bank. Ask your bank to keep posted on the changes, so that when you receive monthly credit card bill, you do not get surprised.
So if you are in urgent need of cash then go for personal loan as annual interest rate is small compared to ATM cash withdrawal. And it’s a myth to say credit card is a finance killer. It all depends purely on the usage. And the free credit period offered to pay the pending amount is the most important feature of a credit card.
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