State Bank of India allows cash withdrawal from PoS devices

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To beat the cash crunch, State Bank of India (SBI) is allowing debit cardholders withdraw money from its nearly 5 lakh Point of Sale (PoS) terminals without any charges.

Cash withdrawal at PoS terminals enables recycling of cash with merchants. For the retailers, it has the effect of depositing cash into their accounts without having to visit the branch. The ‘cash@PoS’ facility is also available to cardholders of other lenders.

According to the RBI guidelines, a customer can withdraw Rs 1,000 in tier-1 and -2 cities, whereas Rs 2,000 can be withdrawn in tier-3 to tier-6 cities per day per card. Presently, the bank will not be charging any fees.

SBI has a total of just over 6 lakh PoS machines of which nearly 5 lakh PoS machines are enabled to dispense cash to its customers, and lenders which have enabled this facility. The bank’s PoS network comprises its largest customer touchpoint. SBI has the largest network of 22,584 branches in India and close to 59,000 ATMs.

According to SBI research, the fourth quarter of FY18 has seen a sequential decline in cash withdrawal from ATMs.

“That has been also the case in some of the earlier years. Thus the decline in ATM withdrawal in Q4 could actually be a seasonal phenomenon apart from the usual reasons floating around like currency shortage. This strongly supports our contention that the current shortage could be superficial rather than real,” said Soumya Kanti Ghosh, chief economic adviser, SBI.

Source by:- timesofindia