Economy

RBI permission no longer required to offer cash withdrawal facility at PoS terminals

Updated : January 31, 2020 09:14 PM IST

Banks were so far required to take one-time permission from the RBI to offer the facility of cash withdrawal at Point of Sale (PoS) terminals

RBI has capped the customer charges, if any, on such cash withdrawals to not more than 1% of the transaction amount

Banks will no longer be required to obtain Reserve Bank of India’s permission to offer a cash withdrawal facility as PoS terminals, the regulator notified on Friday.

Under the Payments and Settlements Systems Act of 2007, banks were so far required to take one-time permission from the RBI to offer the facility of cash withdrawal at Point of Sale (PoS) terminals deployed by them. However, under the revised norms, banks may provide such a facility based on the approval of their respective board. All other provisions with respect to this facility will continue, said RBI.

As per existing rules, all debit cards/open-loop prepaid cards issued by banks can be used to draw up to Rs 1,000 per day in Tier I and II centres and upto Rs 2,000 per day in Tier III to VI centres at any PoS terminal.

RBI has capped the customer charges, if any, on such cash withdrawals to not more than one percent of the transaction amount.

“The designated merchant establishments may be advised to clearly indicate/display the availability of this facility along with the charges, if any, payable by the customer” read the notification by RBI.

Banks will still to be required to submit data on cash withdrawals at PoS devices to the Department of Payment and Settlement Systems on a quarterly basis within 15 days of the end of the quarter.