Out of cash? Time to go ‘shopping’!
23 Jul 2009
The next time you unexpectedly run short of hard cash, you needn't go desperately looking for the nearest ATM. The Reserve Bank of India has decided to allow cash withdrawals up to Rs1,000 a day using the swipe machines at retail shops.
This means you can walk into any shop with a card payment facility, present your debit card for swiping, and walk out with the cash.
''To start with, this facility will be available for all debit cards issued in India, up to Rs1,000 a day,'' the RBI stated on Wednesday in a notification to all system providers like VISA, MasterCard and American Express and all scheduled commercial banks.
Banks were also asked to 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,'' the RBI noted.
The service however won't be available for about another month, as the swipe machines, or point-of-sale (PoS) terminals, will have to be modified. Once this happens, you don't need to purchase anything from the shop to avail of the facility.
However, you may have to pay a fee of 2-3 per cent. The banks may split the service charge with retailers to entice them to offer this service.
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