Can I overdraft my account using a debit card?
Curious about debit card
In India, overdraft protection for debit cards typically works differently compared to credit cards. With a debit card, your ability to make purchases or withdraw cash is usually limited to the available balance in your linked bank account. If you try to spend more than what is available in your account, the transaction may be declined, and you will not be able to overdraft your account.
However, some banks may offer overdraft facilities on savings or current accounts, where you can temporarily spend more than your available balance, up to a certain limit. This is usually referred to as an overdraft facility or a shortterm credit facility. Keep in mind that such facilities are typically provided at the discretion of the bank, and you may need to apply for them separately.
It's important to understand the terms, fees, and interest rates associated with any overdraft facility provided by your bank. Overdrafts are essentially shortterm loans, and you will be required to repay the overdrafted amount along with any applicable charges.
To avoid overdraft fees or unexpected overdrafts, it's a good practice to regularly monitor your account balance and ensure that you have sufficient funds to cover your transactions.