Mar 18, 2014 11:26 AM
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Banks calculate fees and interest on Cash withdrawals using credit card in a different way than the normal credit card purchases. Please read the T&C for your card and understand the process. I made a cash withdrawal using my Citibank credit card on November, the amount, its fees and interests appeared in December bill. I paid it off full and hoped that all settled. When I got the Jan statement I was surprised to see that again there are fees and interest charges. I called the customer care, they gave some vague explanation. I wrote to them many times, they respond in the same way. They said as per the T&C for cash withdrawals interest will be charged till the date of settlement. For me it was settled in December bill and I paid it. So I asked them what is the definition of settlement in Banking terms. Got no answer.
Finally I wrote to Banking Ombudsman and then I got the response saying Bank will continue to charge from the date of withdrawal to the date bank receives the payment. That means, if your bill is generated on 17th and you made that payment in 30th, there will be another charge for the period 18th to 30th, which will come in the next bill. Ok. I paid the bill for Jan statement also. I thought now all settled. Surprise again there is another interest charged on February bill. For that the explanation was it is for the amount charged in Jan Bill. I paid that too. Now I am hoping that everything is settled and waiting for my March statement. So my advise is do not withdraw cash using credit card as far as possible. If you are not monitoring your bills clearly you will never know how much you will end up paying.
