Prepaid cards: RBI allows cash withdrawal of up to Rs 1,000 per day--Financial Express
The Reserve Bank of India (RBI) on Thursday allowed cash withdrawals of up to Rs 1,000 a day through prepaid cards, including gift cards, issued by banks from point of sale terminals, a move aimed at enhancing customer convenience in using plastic money.
As of now, this facility was available only to debit cards issued by banks.
The Reserve Bank said 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," an RBI notification said.
The limit of cash withdrawal will remain Rs 1,000 per day subject to the same conditions as applicable to debit cards, it said.
Yesterday, RBI's newly appointed Governor Raghuram Rajan said that holders of pre-paid instruments issued by non-bank entities are not allowed to withdraw cash from the outstanding balances in their pre-paid cards or electronic wallets.
"Given the vast potential of such instruments in meeting payments and remittance needs in remote areas, we intend to conduct a pilot enabling cash payments using such instruments and Aadhaar based identification," he had said.
In 2009, the RBI had permitted cash withdrawals at POS terminals through debit cards as a step towards enhancing the customer convenience in using the plastic money.
RBI/2013-14/231
DPSS.CO.PD.No.563/02.14.003/
September 5, 2013
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
Madam / Dear Sir,
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).
Yours faithfully,
(Vijay Chugh)
Chief General Manager
DPSS.CO.PD.No.563/02.14.003/
September 5, 2013
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
Madam / Dear Sir,
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).
Yours faithfully,
(Vijay Chugh)
Chief General Manager
RBI eases FDI norms, allows banks to issue guarantees for NRIs investments
he Reserve Bank of India (RBI) today eased foreign direct investment (FDI) norms and allowed banks to provide guarantees on behalf of non-resident Indians (NRIs) to acquire shares and debentures in Indian companies.
"In order to provide operational flexibility and ease the procedures, it has been decided to permit banks to issue bank guarantee, without prior approval of the Reserve Bank, on behalf of a non-resident acquiring shares or convertible debentures of an Indian company through open offers/delisting/exit offers," the RBI said in a notification.
Such transactions should be compliant with provisions of the Securities and Exchange Board of India (Sebi), it said.
Besides, the guarantee provided by a bank should be covered by a counter-guarantee of a bank of international repute and should also be valid during the tenure of the offer period, it said
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