Cash withdrawal facility at POS terminals
Cash withdrawal facility at POS terminals (Point-of-Sale terminals) was introduced in India by RBI in 2009, but failed to gain acceptance among public in India. However, the facility is gradually gaining popularity among the public as general awareness on digital channels for payments and digital banking are steadily increasing. RBI envisaged POS network as an additional facility in addition to ATM network to increase acceptability of card based transactions and promotion of payments based on digital channels. For this process, banks were directed to put in place required policies to permit cash withdrawal facility at POS terminals of designated merchant locations.
What is limit of cash withdrawal facility at POS terminals? How much is the associated charges?
Under this cash withdrawal facility at POS terminals, a cardholder can withdraw cash up to Rs. 2,000/- per day per card in Tier III to VI centres. The ceiling stipulated is Rs. 1,000/- per day per card at Tier I and II centres.
The charges for extending cash withdrawal facility at POS terminals shall not exceed 1% of transaction amount. Merchants shall put in place a notice of availability of the service and the charges applicable at their location.
The cash withdrawal facility will not be available in all POS terminals. Acquirer banks (i.e. the banks that deploy the PoS terminals) may extend the facility at specified merchant locations after carrying out due diligence process. However, other bank customer too can use such terminals for withdrawing cash from their account. Ie Both ON-US and OFF-US transactions are possible in merchant locations extending withdrawal facility at POS terminals. The merchant shall provide printed receipt for each of such cash transactions.
It is not mandatory for the card holder to purchase any item from the merachant’s shop to avail of cash withdrawal facility at POS terminals.
Which types of cards can be used for availing cash withdrawal facility at POS terminals?
Cardholders can withdraw cash using their debit cards and open system prepaid cards issued by banks in India. Cash can be withdrawn through Unified Payments Interface (UPI) as well as through use of electronic cards linked with the overdraft facility provided along with Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts.
However, usage of credit cards for cash withdrawal facility at POS terminals is not permitted.
What shall the customer do in case of complaint about cash withdrawal facility at POS terminals?
The cardholder can lodge grievance(s) with his / her card issuer. In case of non-receipt of reply / non-redressal of grievance, the cardholder can lodge a complaint under the Banking Ombudsman Scheme / Ombudsman Scheme for Digital Transactions.
