The Reserve Bank of India (RBI) on May 5 spelt out the guidelines related to cash withdrawals from point of sale (PoS) terminals.
Cardholders can withdraw cash using their debit cards and open system prepaid cards issued by banks in India under this facility. However, credit cards cannot be used in this facility, RBI said.Adding to it the central bank said under this facility cash can also be withdrawn at PoS terminals through Unified Payments Interface (UPI) as well as through use of electronic cards that are linked to overdraft facility provided with Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts.
Withdrawal of cash upto Rs 2,000 per day, per card in tier III to VI centres can be done by cardholders. At Tier I and II centres, the withdrawal limit is Rs 1000 per card per day under this facility with withdrawal charges will not exceed 1 percent of the transaction amount.
RBI added all PoS terminals will not have this facility. The designated merchant establishments have to clearly indicate the availability of this facility along with the charges, if any, payable by the customer.
Cardholders are able to withdraw cash at such designated merchant establishments, irrespective of the fact whether the card issuer and the acquiring bank are the same or not. The merchant is required to provide a printed receipt generated by the PoS terminal. In case the facility is availed along with the purchase of merchandise, the receipt generated shall separately indicate the amount of cash withdrawn, the release said.
In case the card issuer does not respond within the stipulated time, or the reply received is not satisfactory then the cardholder can lodge a complaint under the Banking Ombudsman Scheme, RBI said.
The local area banks shall require the approval of RBI for providing this facility.