How to Use Debit Card for PoS Cash Withdrawal ?

PoS Cash Withdrawal using Debit Cards, how to guide – Money can be arranged even if you do not want to go to ATM in lockdown. Actually, you can take cash by swapping debit card from any shopkeeper having any point of sale (POS) machine. RBI has set the terms and conditions for this. RBI has released a FAQ list of questions asked about the card swap from POS. There are two things to keep in mind before taking cash. First, not all shopkeepers have this facility. Second- You cannot use a credit card to withdraw cash from POS.

1. What kind of card can be used to withdraw cash from POS?

Cash withdrawal facility can be withdrawn only through debit card. Apart from this, cash can also be withdrawn from open system prepaid cards issued by banks. Credit card cannot be used for cash from POS. Money can also be withdrawn from the machine through the Unified Payments Interface (UPI). Electronic cards linked to the overdraft facility available with Pradhan Mantri Jan Dhan accounts can also be used for this.

2. Is there any limit for PoS Cash Withdrawal ?

Yes Up to Rs 2,000 can be withdrawn from a card in Tier 3 to 6 cities. The cash withdrawal limit for every card in Tier 1 and 2 is Rs 1,000.

3. What is the charge for the use of Pos Cash Withdrawal facility?

If there is any charge on the transaction amount, it will not be more than 1 percent.

4. Is this facility available in all merchant establishments? How do I know if a shopkeeper has Pos Cash Withdrawal facility?

No, not all merchant establishments have this facility. This facility is only with those shopkeepers, who have been allowed by the bank after deliberating. Such a shopkeeper will have to write clearly about this facility. If there is any charge for this, then that too has to be told.

5. Can one withdraw cash from another bank’s POS terminal?

Yes It does not matter from which bank the card is issued to you.

6. Is it mandatory for the beneficiary to purchase any item / service from the shop?

No. It does not matter whether the card holder makes any purchase or not.

7. Will I get a receipt for Pos Cash Withdrawal ?

Yes The shopkeeper will give you the receipt generated from the POS.

8. Where can I complain about the Pos Cash Withdrawal facility?

You can lodge a complaint with the card issuing bank. If the card issuing bank does not respond within the stipulated time or you are not satisfied with the response, a complaint can be made under the Banking Ombudsman Scheme for digital transactions.

9. Does the acquirer bank need RBI permission to provide this facility?

No. Apart from local regional banks, the acquirer bank can provide cash withdrawal from POS based on the approval of its board. Approval of RBI will be required to provide this facility to regional local banks. The acquirer banks (other than local area banks) may, based on the approval of their Board, provide cash withdrawal facility at PoS terminals. The local area banks shall require the approval of RBI for providing this facility.

Read – Clarification on RBI’s 3 Months Loan Moratorium, Should borrowers accept it ?

10. Where can I get more information about this facility?

More information about this facility can be obtained from the circular issued by RBI

DPSS.CO.PD.No.147 / 02.14.003 / 2009-10 dated July 22, 2009,

DPSS.CO.PD.No.563 / 02.14.003 / 2013-14 dated September 5, 2013,

DPSS.CO. PD.No.449 / 02.14.003 / 2015-16 dated August 27, 2015,

DPSS.CO.PD.No.501 / 02.14.003 / 2019-20 dated August 29, 2019 and

DPSS.CO.PD.No. 1465 / 02.14.003 / 2019-20 dated January 31, 2020.


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