Cash Withdrawals @ Point Of Sale

The Reserve Bank Of India under the Payments & Settlements System Act,2007 has circulated among all system providers/scheduled commercial banks to permit cash withdrawals through Debit Cards at POS terminals at different Merchant Establishments alongside the existing ATM centres as the transactions at POS/member Establishments are steadily increasing in the country.

The Bank Boards have to place these proposals to give effect to this guidelines from RBI and the limit upto which cash can be withdrawn is presently fixed at Rs.1000.00. The relevant circular of RBI dt 22nd July 2009 is apended.

RBI/2009-10/105

DPSS.CO.PD.No. 147/02.14.003/ 2009-10

22nd July 2009

To

All System Providers (VISA / MasterCard / American Express),

All Scheduled Commercial banks

Dear Sir,

Cash Withdrawal at Point-of-Sale (POS)

Presently cash withdrawal facility using plastic cards is available only at Automatic Teller Machines (ATMs). As on May 31, 2009, number of ATMs and POS terminals in the country stood at 44,857 and 4,70,237 respectively. The use of debit cards at Point-of-Sale (POS) terminals at different merchant establishments has been steadily increasing. As a further step towards enhancing the customer convenience in using the plastic money, it has been decided to permit cash withdrawals at POS terminals. To start with, this facility will be available for all debit cards issued in India, upto Rs.1000/- per day.

2. The conditions subject to which this facility is being extended is given in the annex(given above)

3. Banks may obtain the approval of their Board of Directors for offering this facility. The note put up to the Board should incorporate the product profile, risk perceived by the bank and the risk mitigation measures.

4. This circular is being issued in exercise of the powers conferred on the Reserve Bank under Section 18 of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007).

Yours faithfully

(G.Padmanabhan)

Chief General Manager