Cash Withdrawal at Point-of-Sale (POS) - Withdrawal limits and customer fee/charges - Relaxation


RBI/2016-17/140
DPSS.CO.PD.No.1280/02.14.003/2016-17

November 18, 2016

The Chairman and Managing Director / Chief Executive Officers 
All Scheduled Commercial Banks including RRBs / Urban Co-operative Banks /
State Co-operative Banks / District Central Co-operative Banks /
All Card Network Providers

Dear Madam / Sir,

Cash Withdrawal at Point-of-Sale (POS) - Withdrawal limits and customer fee/charges - Relaxation

A reference is invited to our circulars 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 and DPSS.CO.PD.No.449/02.14.003/2015-16 dated August 27, 2015 on cash withdrawal at Point of Sale (POS) enabled for all debit cards/open loop prepaid cards issued by banks with specified per day value limits for different locations.

2. Following the withdrawal of legal tender characteristics of existing ₹ 500/- and ₹ 1000/- Bank Notes (Specified Bank Notes – SBN), the Reserve Bank of India had advised banks, vide circular DPSS.CO.PD.No.1240/02.10.004/2016-2017 dated November 14, 2016, to waive levy of ATM charges for all transactions by savings bank customers done at all ATMs, from November 10, 2016 till December 30, 2016, subject to review.

3. As another customer-centric measure, it has been decided that (i) the limit for cash withdrawal at POS (for debit cards and open system prepaid cards issued by banks in India) has been made uniform at ₹ 2000/- per day across all centres (Tier I to VI) for all merchant establishments enabled for this facility and (ii) customer charges, if any, shall not be levied on all such transactions.

4. The above shall come into effect from the date of this circular and shall be applicable till December 30, 2016, subject to review.

5. All other extant instructions in this regard shall remain unchanged.

6. The directive is issued under Section 10(2) read with Section 18 of Payment and Settlement Systems Act 2007, (Act 51 of 2007).

Yours faithfully

(Nanda S Dave)
Chief General Manager

 
Notification No : 1280/02.14.003/2016-17



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