Extend Point Of Sale Cash Withdrawal Facility, RBI Tells Banks
RBI asked banks to extend the facility of withdrawal of cash through debit cards at more merchant establishments.
The Reserve Bank of India on Thursday asked banks to extend the facility of withdrawal of cash through debit cards at more merchant establishments after it noticed that instructions in this regard were not being properly followed.
Earlier, the RBI had instructed to banks on cash withdrawal at point of sale devices enabled for all debit cards and open-loop prepaid cards issued by them. According to the instructions, the limit was cash withdrawal up to Rs 1,000 per day in Tier-I and II centres and Rs 2,000 per day in Tier-III to VI centres.
In a circular, the RBI said it has come to its notice that the instructions have not been implemented in “letter and spirit”. The RBI has reiterated the instructions with a view to provide for cash withdrawals at PoS by card-holders.
“To this end, banks may extend the facility of withdrawal of cash at any merchant establishment designated by them after a due diligence process,” the RBI said. Customer charges, if any, on cash withdrawals from PoS devices could not be more than one per cent of the transaction amount.
Banks have also been asked to submit data on cash withdrawals at PoS devices to Department of Payment and Settlement Systems, Mumbai, on quarterly basis within 15 days of the end of quarter.