Cash withdrawl at point of sale POS instrument is allowed on prepaid cards up to Rs. 1000

Reserve bank of India has allowed cash withdrawl on POS instruments on prepaid cards too. Earlier this facility was only available to debit cards only. RBI issued a note no. 563 dated 5 September 2013 about this facility. Ful note is as under.

Cash withdrawal at Point of Sale (POS) - Prepaid Payment Instruments issued by banks

A reference is invited to our circular DPSS.CO.PD.No. 147 /02.14.003/2009-10 dated July 22, 2009 permitting cash withdrawal at Point of Sale (POS) by all debit cards issued in India upto Rs.1000/- per day,
subject to certain conditions.

2. The open system prepaid payment instruments (PPIs) issued by banks is perceived to be a subset of debit cards. Hence, on a review of the position, it has been decided that the facility of cash withdrawal at POS with debit cards may be extended to such open system prepaid payment instruments issued by banks in India. The limit of cash withdrawal will remain Rs.1000/- per day subject to the same conditions as applicable hitherto to debit cards.

3. This circular is being issued in exercise of the powers conferred on the Reserve Bank under Section 18 of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007).
Tags-prepaid cards in india,point of sale cash withdrawl,cash withdrawl on point of sale instruments
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