The Reserve Bank of India (RBI) asked to extend the bank facility of cash withdrawal through debit cards at more merchant establishments. It has been urging banks to facilitate such cash withdrawal facility at PoS (point of sale) devices enabled for all debit cards and open-loop prepaid cards issued by them.
In a circular, issued on Thursday, the RBI said it has come to its notice that the instructions have not been implemented in ‘letter and spirit’. The central bank has reiterated the instructions with a view to providing for cash withdrawals at PoS by card-holders.
According to RBI norms, the limit on cash withdrawal through debit cards at PoS devices is up to Rs 1,000 per day in Tier-I and II centres and Rs 2,000 per day in Tier-III to VI centres.
If there are any charges during cash withdrawals through debit cards from PoS device should not more than 1 per cent of the transaction amount. RBI gives instruction to every bank to submit data of cash withdrawal at PoS device to Department of Payment and Settlement Systems, Mumbai, on a quarterly basis within 15 days of the end of each quarter.
In the previous month, Banks can’t include non-cash withdrawal transactions like balance enquiry, cheque book request, payment of taxes and funds transfer under free ATM transactions, RBI said.
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