RBI doubles PoS cash withdrawal to Rs 2K in Tier III-VI centre

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RBI doubles PoS cash withdrawal to Rs 2K in Tier III-VI centre

The Reserve Bank today doubled the limit for cash withdrawal at Point-of-Sale (POS) in Tier III to VI centres to Rs 2,000 per day to improve customer convenience.

“This facility will be available for debit cards and open system prepaid cards issued only by banks,” the RBI said in a statement.

The RBI in July 2009 had allowed cash withdrawal at POS terminals for debit cards and subsequently in September 2013 this facility was extended to pre-paid cards issued by the banks.
“The Reserve Bank has doubled the limit for cash withdrawal at Point of-sale (POS) in Tier III to VI centres from Rs 1,000 to Rs 2,000 per day,” it said.

However, the limit remains unchanged at Rs 1,000 per day at Tier I and II centres.

The RBI envisages that the enhanced amount for Tier III- VI centres will add to “customer convenience and aid re-cycling of cash in Tier III to VI centres even as the push towards a less cash society is pursued”.

It said the facility will be reviewed keeping in view the progress in e-payments and other related developments.

“In order to bring transparency in the charge structure, banks have been advised that customer charges levied, if any, should not exceed 1 per cent of the transaction amount at all centres,” it said.

All merchant establishments where this facility has been activated, should display/indicate clearly the availability of cash withdrawal along with the charges, if any, payable by the customers, RBI added.

Cardholders can use PoS for withdrawal irrespective of whether they make a purchase or not. “Cardholders must swipe their cards at the POS and provide PIN for authentication similar to withdrawing cash at an ATM,” RBI said.

Source:Bankupdates.

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