Table of Contents
- 1. Credit Card ATM Withdrawal Charges
- 2. Cash Advance Fee, Percentage & Fixed Charge
- 3. Interest Rate on Credit Card Cash Withdrawal
- 4. No Interest-Free Period on Cash Advances
- 5. GST on Credit Card ATM Withdrawal Charges
- 6. Bank-Wise Credit Card ATM Withdrawal Charges, Full Comparison
- 7. Impact on Credit Score & Credit Limit
- 8. Frequently Asked Questions
Using your credit card to withdraw cash from an ATM can look like a quick solution to a cash emergency, but it is one of the most expensive credit transactions you can make. Unlike a regular credit card purchase, a cash advance carries an upfront fee, an immediate interest charge with no grace period, and a GST component on top. If not repaid quickly, the total cost can reach 8–10% of the withdrawn amount in a single month.
This guide explains every charge associated with credit card ATM withdrawals in India, how each one is calculated, how the credit card cash advance affects your CIBIL score and available limit, and when, if ever, it makes sense to use this facility.
Credit Card ATM Withdrawal Charges
When you withdraw cash from an ATM using a credit card, three distinct charges apply, simultaneously and from the moment of withdrawal. Understanding each one is essential before you use this facility.
Cash Advance Fee, Percentage & Fixed Charge
The cash advance fee is a one-time charge levied by your credit card issuer the moment you withdraw cash. It is charged regardless of when you repay the amount. The fee is calculated as a percentage of the withdrawal amount, subject to a minimum fixed charge.
Across major banks in India, the cash advance fee typically ranges from 2.5% to 3.5% of the withdrawn amount, with a minimum of ₹250 to ₹500 per transaction. This means even withdrawing ₹1,000, where 2.5% would be only ₹25, attracts the minimum charge of ₹250 to ₹500.
| Bank | Cash Advance Fee | Minimum Charge |
|---|---|---|
| HDFC Bank | 2.5% of withdrawn amount | ₹500, whichever is higher |
| ICICI Bank | 2.5% of withdrawn amount | ₹500, whichever is higher |
| SBI Cards | 2.5% of withdrawn amount | ₹500, whichever is higher |
| Axis Bank | 2.5% of withdrawn amount | ₹500, whichever is higher |
| Kotak Mahindra Bank | 2.5% of withdrawn amount | ₹500, whichever is higher |
| IDFC FIRST Bank | 2.5% of withdrawn amount | ₹500, whichever is higher |
| BOBCARD (Bank of Baroda) | 2.5% of withdrawn amount | ₹500, whichever is higher |
| Standard Chartered | 3% of withdrawn amount | ₹300, whichever is higher |
*Cash advance fees are indicative and may vary by card variant. Always check your card's MITC document or Schedule of Charges for the exact rate applicable to your card.
Interest Rate on Credit Card Cash Withdrawal
In addition to the upfront cash advance fee, interest starts accruing on the withdrawn amount immediately, from the day of withdrawal. This is different from a regular credit card purchase, where you enjoy a 20 to 50 day interest-free period before interest kicks in.
Credit card interest rates in India are expressed as a monthly percentage rate (MPR) and can also be seen as an annual percentage rate (APR). For cash advances, the rate is typically the same as or slightly higher than the standard revolving credit rate on your card.
| Bank | Monthly Interest Rate (Cash Advance) | Effective Annual Rate |
|---|---|---|
| HDFC Bank | 1.99% to 3.49% per month | 23.88% to 41.88% p.a. |
| ICICI Bank | 3.40% per month (most cards) | 40.80% p.a. |
| SBI Cards | Up to 3.75% per month | 45% p.a. |
| Axis Bank | 3.00% to 3.75% per month | 36% to 45% p.a. |
| Kotak Mahindra Bank | Up to 3.75% per month | 45% p.a. |
| BOBCARD (Bank of Baroda) | Refer to card MITC | Typically 2.95%–3.5%/month |
| IDFC FIRST Bank | Refer to card MITC | Typically 9%–42% p.a. range |
*Interest rates are indicative. Actual rates depend on the specific card variant and your cardholder agreement. Always check your card's MITC for confirmed rates. Rates as reported from issuer disclosures up to March 2026.
No Interest-Free Period on Cash Advances
This is the most important distinction between a credit card purchase and a credit card cash advance: cash advances have no interest-free (grace) period.
For regular credit card spending, you enjoy 20 to 50 days of interest-free credit, meaning if you pay your full outstanding by the due date, you pay no interest at all. Cash advances do not have this benefit. Interest begins accruing from the exact day of withdrawal, regardless of your statement cycle and regardless of whether you pay the full amount before your due date.
This means even if you withdraw cash on Day 1 of your billing cycle and pay the full amount on Day 30 (before your due date), you still pay 30 days of interest at 3.5% per month, approximately ₹35 per ₹1,000 withdrawn, plus the ₹500 minimum cash advance fee. On a ₹10,000 withdrawal repaid in 30 days, the total cost is approximately ₹850 to ₹1,200, depending on the bank's rate structure.
No grace period on cash advances. Interest runs from day one of withdrawal until the day of full repayment, even if you pay before your statement due date.
GST on Credit Card ATM Withdrawal Charges
Goods and Services Tax (GST) at 18% is levied on the cash advance fee (not on the withdrawal amount itself). This adds to the effective cost of the transaction.
Example calculation for a ₹10,000 withdrawal:
● Cash advance fee: 2.5% of ₹10,000 = ₹250 (but minimum is ₹500, so ₹500 applies)
● GST on ₹500 cash advance fee: 18% of ₹500 = ₹90
● Interest on ₹10,000 for 30 days at 3.5% monthly: ₹350
● GST on interest: 18% of ₹350 = ₹63
● Total extra cost for one month: ₹500 + ₹90 + ₹350 + ₹63 = ₹1,003 on a ₹10,000 withdrawal
This is a 10% cost in a single month. At this rate, credit card cash advances are among the most expensive forms of short-term borrowing in India, more expensive than most personal loans and significantly more expensive than using a debit card.
Bank-Wise Credit Card ATM Withdrawal Charges, Full Comparison
| Component | Typical Range | Key Fact |
|---|---|---|
| Cash Advance Fee | 2.5%–3.5% of amount | Minimum ₹250–₹500 applies even on small withdrawals |
| Interest Rate | 1.99%–3.75% per month | Starts from day of withdrawal, no grace period |
| Effective Annual Rate | 23.88%–45% p.a. | Higher than most personal loan rates |
| GST on Fee & Interest | 18% on charges (not on amount) | Adds ~18% to every fee and interest line |
| ATM Interchange Fee | ₹23 per transaction (from May 2025) | RBI revised from ₹21 to ₹23 effective May 2025 |
| Cash Advance Limit | 20%–40% of total credit limit | Separate from purchase limit |
| Reward Points | Not earned on cash advances | No rewards, no cashback on ATM withdrawals |
| Interest-Free Period | NIL | Immediate interest from transaction date |
*ATM interchange fee of ₹23 per transaction (effective May 1, 2025) is charged only after exhausting the free monthly ATM transaction allowance set by the bank.
Impact on Credit Score & Credit Limit
Does ATM Withdrawal Affect CIBIL Score?
A credit card cash advance does not directly appear as a separate negative item on your CIBIL report, cash advances are reported as credit card transactions, not flagged specifically as 'cash advance.' Credit bureaus receive consolidated credit card data from banks, not a breakdown of which transactions were purchases versus cash advances.
However, credit card cash advances can indirectly harm your CIBIL score in several ways:
● Credit utilisation ratio: The cash advance reduces your available credit limit and increases your credit utilisation. A utilisation ratio above 30% of your total credit limit is considered high by credit bureaus and negatively impacts your score. A ₹30,000 cash advance on a ₹1,00,000 limit card pushes utilisation to 30% before any other spending.
● Repayment difficulty: The immediate interest, high charges, and no grace period make cash advances harder to repay in full by the due date. Partial payments or missed payments create a direct negative entry on your CIBIL report.
● Signal of financial distress: Frequent cash advances from a credit card signal to lenders, even without bureau reporting, that the cardholder may be facing cash flow problems. Banks may review your credit exposure on this basis.
If you take a cash advance and repay the full amount quickly, ideally within days, the impact on your credit score is minimal. The credit utilisation spike is temporary and will reverse once repaid.
How Cash Advance Reduces Available Credit Limit
Your credit card has two limits: the overall credit limit (the maximum you can spend on purchases and cash combined), and the cash advance limit (the maximum you can withdraw as cash). The cash advance limit is a subset of the overall credit limit, typically 20% to 40%.
Example: A card with a ₹1,00,000 credit limit and a 40% cash advance limit can be used for up to ₹40,000 in cash withdrawals. When you withdraw ₹30,000 cash, your available credit limit for purchases drops to ₹70,000 (not ₹1,00,000) until the ₹30,000 is repaid. Both the cash advance amount and the purchase amount share the same overall credit limit pool.
The cash advance limit is set by your bank and is not negotiable in most cases. It is stated in your card's welcome kit and can be viewed in your bank's mobile app or net banking portal under card details.
Practical rule: Before using a cash advance in an emergency, check your cash advance limit in your bank's app. If your available credit limit is already high from purchases, a cash advance may push you into an overlimit situation, attracting an overlimit fee of 2–3% of the excess on top of everything else.
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Frequently Asked Questions
Disclaimer: This article is for general informational and educational purposes only. Cash advance fee rates, interest rates and ATM charges mentioned are based on publicly available bank disclosures as of March 2026 and are subject to change. Always verify current requirements directly with the bank or card issuer before applying. Eligibility, fees and card features are subject to BOBCARD's terms and conditions. Verify current details at bobcard.co.in before applying.
