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 Every Bank levies two types of fees on Cash Advances – 1] Transaction fees which is Rs 300 or 2.5% of the Amount Withdrawn, whichever is Higher and 2] Interest Rate from the Day when Cash has been withdrawn – 3% per month or more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

Authentic Data and Statistics on any consumer related market is a wealthy piece of information. After having done ton of correspondence, sometimes paid to the officers of bank, we have obtained data on the Cash Advances obtained by Consumers on their Credit Cards in India. Today we’d like to present to you the size of the market, average transaction and the profit the banks are making from cash advances.

Size of the Cash Advances Market for FY 2011-12
Indians withdrew cash of Rs 12595.86 Mn [Rs 1259.58 Cr] using their Credit Cards from various bank ATMs in 2,190,662 number of transactions; Thus the Average Cash Withdrawal transaction at ATM was of Ticket Size Rs 5749.79 rounded of to Rs 5750.

The Following Table Shows Monthwise Data of Cash Advance Withdrawal and No of Transactions in FY 2011-12