Tuesday, October 6, 2015

Cash Withdrawal at Point-of-Sale

It has been decided to enhance the limit for cash withdrawal at POS (for debit cards and open system prepaid cards issued by banks in India) to Rs.2000/- per day in Tier III to VI centres. The per-day limit in Tier I and II centres remains unchanged at Rs.1000/-.
Customer charges levied on cash withdrawals shall not exceed 1% of the amount at all centres irrespective of the limit.

Such cash withdrawal facility may be provided by banks subject to the following conditions:
i.        The facility is made available at merchant establishments designated by the bank. Such MEs should clearly display the availability of this facility along with the charges.
ii.        In case the facility is availed along with the purchase of merchandise, the receipt generated shall separately indicate the amount of cash withdrawn.
iii.        Banks offering this facility shall have an effective customer redressal mechanism. Complaints in this regard will fall within the ambit of the Banking Ombudsman Scheme.

Banks are advised to submit data on cash withdrawals to the Department of Payment and Settlement Systems, Mumbai, 400001 on quarterly basis within 15 days of the end of quarter.

Based on RBI Circular dt 27/08/15. Please visit www.rbi.org.in for any further clarification if required…..          Poppy