Today (August 29, 2019)RBI notified to all the Scheduled Commercial Banks including RRBs / Urban Co-operative Banks /State Co-operative Banks / District Central Co-operative Banks /All Authorised Card Networks with regard to Point of Sale transaction. The Banking Regulator said that it has come to their notice that many banks are not following in letter and spirit the conditions applicable to cash withdrawal at Point of Sale devices. In view of not giving room for such types of complaints
The conditions for ‘cash withdrawal at Point of Sale (POS) are as under
- The cash withdrawal facility at point of sale available only against debit cards/open-loop prepaid cards issued by banks in India.
- The maximum amount that can be withdrawn at POS terminals is fixed at Rs.1000/- per day in Tier I and II
centresand ₹ 2,000/- per day in Tier III to VI centres.
- Levying of charges on such cash withdrawals if any shall not be more than 1% of the transaction amount.
- The facility of withdrawal of cash at any merchant establishment designated by them after a due diligence process.
- The cash withdrawal facility is available irrespective of whether the cardholder makes a purchase or not.
- In case the cardholder withdraws cash along with the purchase of merchandise, the receipt generated shall separately indicate the amount of cash withdrawn.
- The complaints with regard to ‘cash withdrawal at Point of Sale (POS) will fall within the ambit of the Banking Ombudsman Scheme.
- Banks offering this facility shall on approval by their respective Boards obtain
one timepermission of Reserve Bank of India, Department of Banking Operations and Development under Section 23 of the Banking Regulation Act, 1949.