The Reserve Bank of India has doubled the limit for cash withdrawal at point-of-sale (POS) in Tier III to VI centres from ₹ 1000/- to ₹ 2000/- per day. This facility will be available for debit cards and open system prepaid cards issued only by banks. It is envisaged that the enhanced amount will add to customer convenience and aid re-cycling of cash in Tier III to VI centres even as the push towards a less cash society is pursued. This facility will be reviewed keeping in view the progress in e-payments and other related developments. The limit remains unchanged at ₹ 1000/- per day at Tier I and II centres.
In order to bring transparency in the charge structure, banks have been advised that customer charges levied, if any, should not exceed 1% of the transaction amount at all centres. All merchant establishments where this facility has been activated, should display/indicate clearly the availability of cash withdrawal along with the charges, if any, payable by the customers. Cardholders can use this facility irrespective of whether they make a purchase or not. Cardholders must swipe their cards at the POS and provide PIN for authentication similar to withdrawing cash at an ATM.
It may be recalled that in July 2009, the Reserve Bank had enabled cash withdrawal at Point-of-Sale (POS) for debit cards. Subsequently, in September 2013 this facility was extended to pre-paid cards issued by the banks.