IDFC First Bank Credit Card Cash Withdrawal Charges

A cash withdrawal using an IDFC FIRST Bank credit card is treated as a cash advance. It allows cardholders to withdraw money from any ATM within India or abroad. Unlike regular credit card transactions, a cash advance starts attracting interest immediately, without any interest-free period. 

This type of withdrawal is intended for urgent cash requirements and carries higher charges than standard credit card spends. The interest continues to accrue daily until the withdrawn amount is fully repaid. Cash withdrawals also do not earn rewards or benefits and may reduce the available credit limit until repayment is made. 

Cash withdrawals on IDFC credit cards usually include a cash advance fee, which is charged as a percentage of the transaction amount. This fee may differ based on the credit card variant. 

For example, many IDFC FIRST Bank credit cards allow interest-free ATM cash withdrawals up to 48 days. Usually, the bank charges a low cash advance fee of ₹199 per transaction for most credit cards, which is applied at the time of the withdrawal. There is also an immediate interest charge on cash advances. GST is also applied to the cash advance fee and interest as well. 

Note that this interest starts accruing from the day of the withdrawal until the amount is repaid in full. Since interest accrues daily, the actual cost depends on how long the outstanding withdrawal remains unpaid. This makes IDFC credit card cash withdrawal charges higher than regular card spending. 

Withdrawing cash from an IDFC FIRST Bank ATM may attract lower charges than using another bank’s ATM. Non-IDFC ATMs may apply additional network fees as per the ATM provider’s terms. 

Usually, you can use your credit card up to five times to withdraw money from ATMs for free per month. This can change based as per the card provider, location, or on the card’s credit limit. An ATM interchange or maintenance fee is also charged on ATM cash withdrawals. Recently, RBI raised this fee to ₹17 per transaction from ₹15 per transaction. 

These IDFC Bank credit card ATM withdrawal charges can vary, making it important to be aware of ATM-specific rules before withdrawing cash. Charges on non-banking days or during high-traffic periods may also differ based on ATM service conditions. 

Interest charges on cash withdrawals are different from regular credit card transactions. Cash withdrawals have no interest-free period, meaning interest is applied immediately from the transaction date. The rate is typically higher than the interest charged on retail purchases, ranging from 0.75%–3% per month. 

Interest is calculated on a daily basis until the full outstanding amount is paid. The annualised percentage rate (APR) can make IDFC credit card ATM withdrawal charges more expensive if repayment is delayed. These charges can apply even if you pay the minimum amount due, as the remaining balance continues to attract interest. 

To minimise credit card cash withdrawal charges, withdraw the exact minimum needed, repay it immediately, use a low interest rate credit card, and consider cheaper alternatives. 

• Withdraw Minimum Amount: 

Only take out the exact cash you need to reduce fees and interest, which is often up to 3% of the amount.

• Pay Back at the Earliest: 

Interest starts accruing immediately; so, repay within days to stop daily interest accumulation.

• Know Your Card: 

Check your IDFC FIRST Bank credit card's fee schedule for its specific cash advance fee and interest rate before withdrawing.

• Use Your Own Bank's ATM: 

This can help you avoid the extra fees paid when withdrawing money from other banks’ ATMs. 

• Explore Alternate Cash Sources: 

You can consider cheaper alternatives like withdrawing on debit cards, and using UPI or e-wallets for quick cash needs. 

Understanding common issues can help you tackle them quickly when using your IDFC FIRST Bank credit card for cash withdrawals. 

• Reduced Withdrawal Limits: Your cash withdrawal limit is usually a small percentage of your total credit limit, often between 20% and 40%.

• Over-limit Charges: Attempting to withdraw more than your assigned cash limit can trigger additional over-limit fees.

• Daily Transaction Caps: Banks often impose a maximum limit on the amount of cash that can be withdrawn per day or per transaction. 

• Network/Downtime Issues: Failed or partial cash dispensing may occur due to ATM downtime or network issues. The amount may be temporarily held until the bank takes steps. 

• Interest Miscalculations: This may occur if payments are delayed or applied after billing cycles. 

• Other Problems: ATM errors, incorrect balances, or PIN failures may also cause cash withdrawal issues on your credit card. 

Reporting these problems immediately to the bank and keeping transaction slips ensures quicker resolution.