IDFC First Bank to offer interest-free cash advances for 48 days to its customers. IDFC will also provide dynamic interest rates on revolving credit. The bank is looking to expand its credit card business for which these offerings were launched on Friday, January 15.
COO, B. Madhivanan, said in an interview that IDFC is testing the interest free cash scheme and that they are the first bank to offer the same.
IDFC is offering the credit cards to its existing customers on an invitation basis to begin with and will offer the same to other customers after March, said Mr. Madhivanan.
Banks charge high Credit card cash-advance fee on every cash withdrawal transaction made through a credit card. The amount ₹250-450 is charged per cash withdrawal made using a credit card. 2.5% to 3% of the withdrawn amount is charged as interest on every cash withdrawal per month.