Now withdraw cash at a shop, but bear a cost

ICICI Bank Ltd, the largest private bank in the country, on Tuesday announced the launch of a facility that allows withdrawal of cash at the point of sales (PoS) terminal, an electronic retail payment device or a shop with such a device. The Reserve Bank of India (RBI) first allowed this facility through a notification issued in 2009. Union Bank of India (UBI) was the first to launch this facility in rural areas with the motive of financial inclusion; ICICI Bank claims to be the first to come out with this facility. You can withdraw up to Rs1,000 per day at the PoS terminal at a shop. The best part is that you need not make any purchases from the shop where you avail this facility. If the merchant refuses to give cash, the debit cardholder can lodge a complain with the bank. It is similar to the process where a merchant refuses to accept card for purchase of goods. The RBI circular says, “In case the facility is being availed with the purchase of merchandise, the receipt generated shall separately indicate the amount of cash withdrawal.” The facility, however, comes at a cost. You will need to pay Rs10 per transaction as a fee. You do not have to pay the merchant on the spot; the fee will be charged by the bank and directly debited from your account.