Sucheta Dalal :RBI allows PoS cash withdrawal
Sucheta Dalal

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RBI allows PoS cash withdrawal   

September 25, 2009

 

Customer convenience in the use of plastic money is imperative and in a move to enhance this, the Reserve Bank of India (RBI) has now allowed cash withdrawal from point of sale (PoS) terminals across the country.

 

According to a circular issued by the apex bank, all customers using debit cards issued in India can withdraw up to Rs1,000 per day from PoS terminals. “The facility is available irrespective of whether the card holder makes a purchase or not. Also, In case the facility is being availed along with the purchase of merchandise, the receipt generated shall separately indicate the amount of cash withdrawn,” the RBI said.

 

However, there is no mention of service cess or any other charges for the cash withdrawals at PoS.

 

PoS terminals are available at merchant establishments and withdrawals can be made when a designated bank assigns the establishment after a due diligence process. This will ease the process of withdrawing cash when an ATM facility is not available in the vicinity for debit card holders.

 

In India there were 44,857 ATMs and 470,237 PoS terminals at the end of May, the apex bank said.

 

However, banks can start the facility only after receiving an approval from their respective boards. Banks offering this facility will also have to put in place a proper customer redressal mechanism and complaints in this regard will fall within the ambit of the Banking Ombudsman Scheme.

 

According to the circular, after receiving approvals from their respective boards, banks offering this facility need to obtain one-time permission from the Department of Banking Operations and Development at RBI. – Aditya Kshirsagar [email protected]


-- Sucheta Dalal



 



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