Point of Sale (PoS) Terminals: RBI gives you all details on cash withdrawal facility


New Delhi: The Reserve Bank of India (RBI) has not too long ago defined the cash withdrawal facility via level of sale (PoS) terminals within the type of ceaselessly requested questions (FAQs). Under this facility, the central financial institution said that underneath the facility, cardholders can withdraw cash utilizing their debit playing cards and open system pay as you go playing cards issued by banks in India. Notably, the customers can use bank cards to avail of this facility.

The RBI assertion issued on May 5, 2020 clarified all details within the type of ceaselessly requested questions (FAQs): 

1. Which varieties of playing cards are allowed for withdrawing cash at PoS terminals?
Ans. Under the facility of cash withdrawal at PoS terminals, cardholders can withdraw cash utilizing their debit playing cards and open system pay as you go playing cards issued by banks in India. However, bank cards can’t be used underneath this facility. Cash may also be withdrawn at PoS terminals via Unified Payments Interface (UPI) in addition to via the use of digital playing cards which are linked with overdraft facility offered together with Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts.

2. Is there any restrict on the quantity of cash that may be withdrawn underneath this facility?
Ans. Yes. Under this facility, a cardholder can withdraw cash as much as Rs 2,000/- per day per card in Tier III to VI centres. At Tier I and II centres, the withdrawal restrict is Rs 1,000/- per day per card.

3. What are the costs for availing of this facility?
Ans. Charges, if any, levied on cash withdrawals shall not exceed 1% of the transaction quantity.

4. Is this facility out there at all service provider institutions? How will I do know if the facility is out there at a specific service provider PoS?
Ans. No. The facility is made out there at service provider institutions designated by the acquirer banks (i.e. the banks that deploy the PoS terminals) after a course of of due diligence. The designated service provider institutions have to obviously point out/show the supply of this facility together with the costs, if any, payable by the shopper.

5. Is withdrawal of cash utilizing PoS terminals deployed by different banks (i.e. banks aside from my card issuer) at designated service provider institutions permitted?
Ans. Yes. Under this facility, cash may be withdrawn from PoS terminal(s) at designated service provider institution(s), irrespective of the very fact whether or not the cardboard issuer and the buying financial institution are identical or not.

6. Is it obligatory for the cardholder to buy some items/providers from the service provider institution for availing this facility?
Ans. No. The facility is out there irrespective of whether or not the cardholder makes a purchase order or not.

7. Will a receipt be offered for the cash withdrawn at PoS terminal?
Ans. Yes. The service provider is required to offer a printed receipt generated by the PoS terminal. In case the facility is availed together with the acquisition of merchandise, the receipt generated shall individually point out the quantity of cash withdrawn.

8. Where can a grievance in respect of this facility be lodged?
Ans. The cardholder can lodge grievance(s) together with his / her card issuer. In case the cardboard issuer doesn’t reply throughout the stipulated time, or the reply so obtained is just not passable, the cardholder can lodge a criticism underneath the Banking Ombudsman Scheme / Ombudsman Scheme for Digital Transactions.

9. Does the acquirer financial institution want any permission from the Reserve Bank of India (RBI) for offering this facility at its PoS terminals?
Ans. No. The acquirer banks (aside from native space banks) could, based mostly on the approval of their Board, present cash withdrawal facility at PoS terminals. The native space banks shall require the approval of RBI for offering this facility.

10. Where can extra details about this facility be discovered?
Ans. More details about this facility may be discovered within the following circulars issued by the RBI – DPSS.CO.PD.No.147/02.14.003/2009-10 dated July 22, 2009, DPSS.CO.PD.No.563/02.14.003/2013-14 dated September 5, 2013, DPSS.CO.PD.No.449/02.14.003/2015-16 dated August 27, 2015, DPSS.CO.PD.No.501/02.14.003/2019-20 dated August 29, 2019 and DPSS.CO.PD.No.1465/02.14.003/2019-20 dated January 31, 2020.

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