Can I transfer money from OneCard to bank account?

OneCard’s New Fee: Understanding the Limits on Bank Account Transfers

OneCard, the popular digital-first credit card issued by BOB Financial, has recently implemented a new fee structure for transferring money to bank accounts or third-party wallets. Effective March 10th, 2024, users will now incur a 1% charge on the total amount transferred in a calendar month exceeding ₹10,000. This change clarifies existing transfer policies and introduces a notable limitation for high-value transactions.

Previously, OneCard offered seemingly unlimited free transfers, a feature often highlighted as a key benefit for its users. This new policy alters that perception, introducing a significant cost consideration for those regularly transferring large sums of money. The crucial detail lies in the “total amount” clause – the fee is calculated on the aggregate of all transfers exceeding ₹10,000 within a single month.

For example, if a user transfers ₹5,000 on March 1st, ₹6,000 on March 15th, and ₹10,000 on March 31st, they will not incur any fees. However, a transfer of ₹12,000 on a single day will attract a fee of ₹120 (1% of ₹12,000). Similarly, transferring ₹15,000 across multiple transactions in a single month will result in a fee calculated on the total amount exceeding ₹10,000 (i.e., 1% of ₹5,000).

This change is likely intended to manage costs and potentially encourage alternative usage patterns, such as in-app spending or utilizing the card for purchases directly. While the fee might seem small for some, it represents a significant expense for users making large and frequent transfers, potentially affecting those who rely on OneCard as a primary transactional account.

What this means for OneCard users:

• Budget accordingly: Users who regularly transfer more than ₹10,000 per month should factor this 1% fee into their budgeting.
• Consider alternatives: For large transfers, exploring alternative methods might become more cost-effective. This could involve using other payment platforms or utilizing a different bank account for larger transactions.
• Monitor monthly transfers: Keep track of your total monthly transfers to avoid unexpected fees.

In summary, the introduction of this fee represents a notable shift in OneCard’s transfer policy. While smaller transfers remain unaffected, users transferring significant sums monthly should be aware of the new charges and adjust their financial management accordingly. This change highlights the evolving landscape of digital banking and the increasing importance of understanding the associated costs and limitations.