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Withdraw cash, check account balance at merchant shops

According to RBI, till June 2020, there were an estimated 84 crore debit cardholders and about 2.10 lakh onsite and offsite ATMs in IndiaPremium
According to RBI, till June 2020, there were an estimated 84 crore debit cardholders and about 2.10 lakh onsite and offsite ATMs in India

  • While the service will work pan-India, Mswipe is focusing on tier-2, tier-3 and tier-4 cities with limited ATM facilities and bank branches
  • Customers can withdraw a maximum of 10,000 twice a day from the ATM Express at no additional cost, according to Mswipe's press release

Now, you could withdraw cash at a merchant store. Mswipe, a financial services platform, launched a service called ATM Express. The service allows customers to withdraw cash and check balance using the point-of-sale (PoS) terminal - the machine on which shopkeepers swipe the cards.

Some banks already offer such micro-ATMs. But for merchants using Mswipe, the service will be bank agnostic. The merchant who provides this service will earn a commission.

While the service will work pan-India, Mswipe is focusing on tier-2, tier-3 and tier-4 cities with limited ATM facilities and bank branches.

According to RBI, till June 2020, there were an estimated 84 crore debit cardholders and about 2.10 lakh onsite and offsite ATMs in India. On average, there is one ATM for 4,000+ debit cardholders and even fewer in Tier 3 and 4 cities.

The central bank had reiterated in May last year that PoS terminals can be used for cash withdrawal. It allowed cash withdrawal via debit cards and prepaid instruments. Cash withdrawal from a credit card is not permitted.

RBI also said that the merchant must provide a printed receipt generated by the PoS terminal. If the facility is availed along with the purchase of merchandise, the receipt should separately indicate the amount of cash withdrawn.

In case of any problems, the cardholder should lodge a grievance with the card issuer. In case the card issuer does not respond within the stipulated time, or the reply so received is not satisfactory, the cardholder can complain to the banking ombudsman scheme or ombudsman scheme for digital transactions, according to RBI's notification.

Customers can withdraw a maximum of 10,000 twice a day from the ATM Express at no additional cost, according to Mswipe's press release.

"Availing ATM services continues to be a challenge in Tier 2, 3 and 4 cities due to a limited number of ATMs or non-functional facilities. By layering micro ATM services on PoS terminals which are available even in the smallest of shops, we are empowering merchants to simplify the life of their customers and at the same time generate revenue for themselves," said Vivek Patil, business head - micro ATM and VAS, Mswipe.

Mswipe is one of the largest issuers with around 6.75 lakh PoS terminals installed.

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