The Reserve Bank on Wednesday allowed cash withdrawals using the swipe machines at retail shops. The facility will initially be available to 14.3-crore people holding debit cards issued in India.
You can withdraw up to Rs 1,000 in a day. Also, you don''t need to purchase anything from the shop to avail this facility. However, you may have to pay a fee of 2-3%. In case the cardholder also pays for a purchase, then the receipt will have to separately indicate the cash withdrawn. For this, the swipe machines, or point-of-sale (PoS) terminals, will have to be upgraded and it may take around a month for the service to go on stream. The banks may split the service charge with retailers to entice them to offer this service. At present, merchants pay a fee of 1.5-2% for every card transaction. The move will particularly benefit customer in smaller towns and rural areas, which have few ATM machines. The move will also bring down the amount of money a retailer needs to deposit in a bank every day as it can disburse the same for a fee. As for banks, the increased debit card usage will translate into higher fee income. There are 10 swipe machines for every ATM in the country. RBI has said the facility can be made available at any merchant establishment designated by the bank after due diligence. According to RBI, the boards of banks should take the decision to offer this service after taking stock of the product profile, risk perception and risk mitigation measures. After board approval, banks will also have to obtain a one-time approval from RBI. (23-Jul-09) Economic Times thanks, mukesh jain. -- email: [email protected] mob: 919977165123 to read articles, circulars, books, titorials, and lot more related to PWD's visit my site: http://www.mukesh.myehome.in to know about my efforts of sketching the life of mumbai visit: http://www.themumbaicity.webs.com To unsubscribe send a message to [email protected] with the subject unsubscribe. To change your subscription to digest mode or make any other changes, please visit the list home page at http://accessindia.org.in/mailman/listinfo/accessindia_accessindia.org.in
