Now withdraw INR2000 from Point-of-Sale (POS) Terminals

-

          POS terminals come in a wide variety of sizes for numerous uses. The most common usage of POS terminals is to swipe the Credit Cards/Debit Cards for CashLess transactions.

          In India, since 2009 POS terminals are enabled for LessCash transactions too. The first notification by Reserve Bank of India was issued in 2009 permitting cash withdrawals from POS Terminals. Subsequently, in September 2013 this facility was extended to pre-paid cards issued by the banks.

This step was introduced by Reserve Bank of India to:
1)     Reduce the pressure on ATMs
2)    Reduce the cash deposits by the merchants in bank accounts
3)    Obviate   the need to install ATMs in nook and corner of the country
4)    Familiarise Bank customers with electronic banking

The normal POS terminals did not support Cash Withdrawals hence the volumes of cash withdrawals through POS terminals were slow to take off.

Over the years with sustained campaigns by the banking industry has led to this ‘cash withdrawal’, utility becoming popular.

However, there are no statistics on public domain highlighting the number of ‘cash withdrawals’, through POS terminals every month.

RBI Notification dt RBI/2015-16/164,DPSS.CO.PD.No.449/02.14.003/2015-16 dt.August 27, 2015 highlights the growing popularity of the ‘Cash withdrawals’, through POS terminals.

Through the above notification:    

a)     RBI doubles Limits of Cash Withdrawal at POS for Tier III to VI Centres.
b)    The limit for cash withdrawal at point-of-sale (POS) in Tier III to VI centres is doubled from ₹ 1000/- to ₹ 2000/- per day.
c)     This facility will be available for debit cards and open system prepaid cards issued only by banks.
d)    The limit remains unchanged at ₹ 1000/- per day at Tier I and II centres.

This enhancement is envisaged towards enhanced 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.

Basing on feedback received, this facility will be reviewed keeping in view the progress in e-payments and other related developments. 

Banks should ensure 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.

The facility is available irrespective of whether the card holder makes a purchase or not. In case the facility is availed along with the purchase of merchandise, the receipt generated shall separately indicate the amount of cash withdrawn.

Cardholders must swipe their cards at the POS and provide PIN for authentication similar to withdrawing cash at an ATM.

Publicity by the participating banks is the key to enhanced volumes. The Card issuing banks that have enabled this functionality are encouraged to create sufficient awareness of this facility amongst their customers.

IDBI Bank Cash @ POS
State Bank of India Cash @ POS
Axis Bank Cash @ POS




Comments

Post a Comment

Popular posts from this blog

CERTIFICATE EXAMINATION IN INTERNATIONAL TRADE FINANCE

-
Image
          This certification is essential for all members of a Bank Trade Finance Department.   The syllabus covers key aspects required by team members to effectively discharge their duties. Trade Finance is one of the traditional forms of bank finance in India. In view of reforms and liberalisation, this has gained a new significance.   Many of the practices in trade finance have evolved over a period of time and some are guided by Ministry of Commerce and Reserve Bank of India, besides WTO and International Chamber of Commerce through UCPDC 600. With the increase in the volume of trade both domestically and internationally, there is a need for trade finance professionals from banks as well as corporates. The Objectives of this IIBF Examination is as under:   (i) To provide candidates with competencies required to function as trade finance practitioners. (ii) To enable candidates to possess the needed skill and knowledge to understand clients' needs
Read more

IIBF-Certificate Examination in Foreign Exchange Facilities for Individuals

-
          The primary objective this IIBF course is to make the branch officials familiar with the FEMA provisions that impact their day to day functioning at the branch level.     This exam is being introduced pursuant to the recommendation of a committee of RBI.           Normally foreign exchange transactions pertaining to individuals are handled at branches only and are not referred to specialised forex cells.           The course covers ‘Foreign Exchange Facilities for individuals under FEMA1999’ RBIs FAQs’ on Forex Facilities for Residents (Individuals) (updated up to November 21, 2014) For full details refer to Reserve Bank of India website: Introduction : The legal framework for administration of foreign exchange transactions in India is provided by the Foreign Exchange Management Act, 1999. Under the Foreign Exchange Management Act, 1999 (FEMA), which came into force with effect from June 1, 2000, all transactions involving forei
Read more

IIBF introduces Self-Paced E-learning courses (SPeL) for its two certificates

-
Image
          Indian Institute of Banking Finance (IIBF) has taken a quantum leap in disseminating knowledge to its members and non-members.           IIBF in April 2019, introduced the Self-Paced E-learning courses (SPeL) concept for banking enthusiasts to be familiar with banking concepts.           In the first stage, IIBF has launched   two certificate courses i.e 1. Digital Banking and 2. Ethics in Banking.           The objective of this self-paced e-learning mode are as follows: • Participants can make the best use of his or her time, in order to meet his or her learning objectives. • Participants can access the course   anywhere/anytime with an internet connection. • Participants need not travel to give their examinations. It saves time and money of the participants. • Opportunity to individuals to obtain new certifications; improve their knowledge in the subject. • With self-paced learning, subjects can be thought in different learning styles. Part
Read more