In the Previous Article, we have already discussed about the Cash Advances Market in India on various Metrics. Today we’d like to Highlight the Profits Indian Banks Make from the Cash Advances Segment of Credit Card [CC] Lending.
As already seen, the Cash Advanced on CC was Rs 1,259 Cr spread across 21.90 Lakh Transactions in FY 2011-12. Every Bank levies two types of fees on Cash Advances – 1] Transaction fees which is Rs 300 or 2.5% of the Amount Withdrawn, whichever is Higher and 2] Interest Rate from the Day when Cash has been withdrawn – 3% per month or more
The following Screenshots show the Cash Advance Transaction fees and APR on