So exactly how much charges you will have to bear if you withdraw cash in a foreign country ATM using your HDFC bank debit card? I will give you the straight forward answer with exact calculation.
Let’s assume you drew some foreign currency from the ATM which was worth 1000 in Indian rupees as per that day’s currency conversion rate.
There will be following 2 fees:
ATM use fee by HDFC bank: You will pay a fixed charge of Rs 110 to HDFC every time you use an ATM outside India to draw foreign currency.
18% tax on the above by Indian govt: There will be 18% GST on the above Rs 110 which HDFC bank will deduct & give to the Indian government. So 18% of Rs 110 is Rs 19.8
Combined: Rs 110 + Rs 19.8 = Rs 129.8 . This amount will appear as a single line item in your bank statement.
Cross currency mark-up fee by HDFC bank: Your bank account has money in Indian rupees but you are withdrawing money in a foreign currency, so you will pay HDFC bank a fee to convert the currency, which is 3.5% of the amount you drew in Indian rupees.
So for 1000 rupees this fee is 35 rupees.
18% tax on the above by Indian govt: There will be 18% GST on the above currency conversion fee of Rs 35 which HDFC bank will deduct & give to the Indian government. So 18% of Rs 35 is Rs 6.3
Combined: Rs 35 + Rs 6.3 = Rs 41.3 .This amount will appear as a single line item in your bank statement.
So for Rs 1000 worth of foreign currency you withdraw abroad, the total charge is Rs 129.8 + Rs 41.3 = Rs 171.1
Withdraw Singapore Dollar 1500 = 76813.21 Indian Rupees
Fee 1: 129.8 fixed fee Fee 2: 3.5% of 76813.21 = 2688.46 18% of 2688.46 = 483.92 2688.46 + 483.92 = 3172.38 Total: 129.8 + 3172.38 = Rs 3302.18
Withdraw Malaysia Ringgit 1000 = 16843.50 Indian Rupees
Fee 1: 129.8 fixed fee Fee 2: 3.5% of 16843.50 = 589.52 18% of 589.52 = 106.11 589.52 + 106.11 = 695.63 Total: 129.8 + 695.63 = Rs 825.43
The above 2 charges will apply every time you use a foreign ATM to withdraw cash in their currency. From my experience I believe this will be same for all countries.
I only have HDFC bank debit cards so I can speak only for HDFC. Debit cards from other Indian banks might have different charges.
Important note: In addition to these above 2 charges by HDFC + tax by Indian govt, some foreign bank ATMs in some countries might charge you an extra fee for using their ATM because your bank is outside their country/banking network. Depending upon how transparent that bank is, their ATM screen might or might not show a notice about this charge before you proceed to do the withdrawal & give you an option to proceed/cancel the withdrawal. It could be a fixed amount or a percentage fee. This will be added to your total withdrawal amount in Indian rupees & will not show as a separate item in the bank statement.
For example I have never paid any such additional fees by any ATM in Malaysia, but I have paid 60000 VND [Vietnamese Dong] for one transaction at a Citi bank ATM in Ho Chi Minh City airport, Vietnam, and 250 Peso for one transaction at a PSBank ATM in Manila airport, Philippines.
And if you’re wondering about charges incurred while swiping your debit card at international stores/merchants/POS machines then read this post.