RBI issues FAQ on Cash Withdrawal Facility at Point of Sale (PoS) Terminals
In order to enhance the customer convenience in using the plastic money, RBI in 2009 permitted cash withdrawals at POS terminals. initially, this facility was made available for all debit cards issued in India, upto Rs.1000/- per day.
Ans. Under the facility of cash withdrawal at PoS terminals, cardholders can withdraw cash using their debit cards and open system prepaid cards issued by banks in India. However, credit cards cannot be used 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 Cash can also be withdrawn at PoS terminals through Unified Payments Interface (UPI) as well as through use of electronic cards that are linked with overdraft facility provided along with Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts.
Ans. Yes. Under this facility, a cardholder can withdraw cash up to ₹2,000/- per day per card in Tier III to VI centres. At Tier I and II centres, the withdrawal limit is ₹1,000/- per day per card.
Ans. Charges, if any, levied on cash withdrawals shall not exceed 1% of the transaction amount.
Ans. No. The facility is made available at merchant establishments designated by the acquirer banks (i.e. the banks that deploy the PoS terminals) after a process of due diligence. The designated merchant establishments have to clearly indicate / display the availability of this facility along with the charges, if any, payable by the customer.
Ans. Yes. Under this facility, cash can be withdrawn from PoS terminal(s) at designated merchant establishment(s), irrespective of the fact whether the card issuer and the acquiring bank are same or not.
Ans. No. The facility is available irrespective of whether the card holder makes a purchase or not.
Ans. Yes. 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is availed along with the purchase of merchandise, the receipt generated shall separately indicate the amount of cash withdrawn.
Ans. The cardholder can lodge grievance(s) with his / her card issuer. In case the card issuer does not respond within the stipulated time, or the reply so received is not satisfactory, the cardholder can lodge a complaint under the Banking Ombudsman Scheme / Ombudsman Scheme for Digital Transactions.
Ans. No. The acquirer banks (other than local area banks) may, based on the approval of their Board, provide cash withdrawal facility at PoS terminals. The local area banks shall require the approval of RBI for providing this facility.
Ans. More information about this facility can be found in the following circulars issued by the RBI – DPSS.CO.PD.No.147/02.14.003/2009-10 dated July 22, 2009, DPSS.CO.PD.No.563/02.14.003/2013-14 dated September 5, 2013, DPSS.CO.PD.No.449/02.14.003/2015-16 dated August 27, 2015, DPSS.CO.PD.No.501/02.14.003/2019-20 dated August 29, 2019 and DPSS.CO.PD.No.1465/02.14.003/2019-20 dated January 31, 2020.
These FAQs are issued by the Reserve Bank of India (hereinafter referred to as “Bank”) for information and general guidance purposes only. The Bank will not be held responsible for actions taken and / or decisions made on the basis of the same. For clarifications or interpretations, if any, one may be guided by the relevant circulars, guidelines and notifications issued from time to time by the Bank.
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