For Quick Alerts
For Daily Alerts

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is availed along with the purchase of merchandise, the receipt generated shall separately indicate the amount of cash withdrawn.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]
Company Search
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more