Mumbai: Every store that accepts debit cards could soon become an ATM.
The Reserve Bank of India (RBI) on Wednesday allowed cash withdrawal from such point-of-sale (PoS) terminals, or the hand-held card swiping machines used by merchant establishments or stores.
As of 31 May, India had 44,857 automated teller machines and 470,237 PoS terminals.
Fast money: According to the notice, customers would be able to withdraw up to Rs1,000 a day using the swipe card machines. Hemant Mishra / Mint
“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,” RBI said in a notice issued on Wednesday.
Initially, customers can withdraw up to Rs1,000 a day from PoS machines using debit cards. RBI said they could do this irrespective of whether or not they bought something at the merchant establishment.
Banks can start this facility by getting a one-time approval by the banking regulator and are required to maintain a proper customer redressal mechanism for offering this service, RBI said. According to a senior Axis Bank Ltd official, this facility could come at a fee, unlike interbank ATM transactions that are free at the hands of the customers.
“Banks and card associations like Visa and MasterCard would have to decide on an interchange fee. This fee would be levied as a convenience charge to the customer which is an international practice and this could be in the range of Rs20-50,” added the official, who did not want to be identified.
“Customers will benefit from this service as they can shop and withdraw cash at the same place. The merchants will have to be compensated by ways of a fee as they would get the cash only the next day from the bank,” said this person.
anup.r@livemint.com