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RBI Asks Banks To Extend Cash Withdrawal Facility At Merchant Establishments

By Staff
|

In a notification on Thursday, the Reserve Bank of India (RBI) has asked banks to extend the cash withdrawal facility using debit cards/open loop prepaid cards at more merchant establishments.

RBI Asks Banks To Extend Cash Withdrawal Facility At Merchant Establishments
 

The central bank said that it had issued circulars in the previous years "on cash withdrawal at PoS devices enabled for all debit cards/open loop prepaid cards issued by banks."

RBI said that the issued circulars were not "implemented in letter and spirit" and instructions were reiterated with a view to provide cash withdrawals at PoS to 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," it said.

The circulars were issued with instructions to limit the transactions to cash withdrawals of Rs 1,000 per day per card in Tier I and II centres and Rs 2,000 per day in Tier III and IV centres. Customer charges were to be limited to not exceed over 1 percent of the transaction amount.

As per RBI instructions, the cash withdrawal facility at merchant places should be made available irrespective of whether the card-holder makes a purchase or not. In case the facility is availed along with the purchase of merchandise, the receipt generated shall separately indicate the amount of cash withdrawn.

Complaints on this regard will fall under the ambit of the Banking Ombudsman Scheme.

Read more about: rbi cash pos
Story first published: Friday, August 30, 2019, 12:06 [IST]
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