RBI in a circulation announced that people can now withdraw money from the nearest Point of Sales (PoS) assigned at designated shops instead of visiting an ATM. At the time of contagious COVID-19, a move as this reduces long queues at ATMs, helping maintain social distancing norms. Complete Coverage: Coronavirus
Crux of the Matter
PoS is the New ATM The government has extended the service of cash withdrawal to PoS present at merchant shops. People can withdraw money using Unified Payment Interface (UPI) and debit cards. As per the RBI guideline, credit cards cannot be used. Further, this move will also reduce the burden on banks and ATMs in rural areas as people can withdraw money from shops.
RBI Guidelines All bank account holders can withdraw money from the PoS irrespective of whether they have an account in that bank or not. However, RBI has put restrictions on the amount of cash withdrawal: People living in Tier 1 & 2 cities can withdraw only ₹1000 per person People living in Tier 3 – 5 cities can withdraw ₹2000 per person If any merchants levies charges on cash withdrawal, then it shall be less than or equal to 1% of the transaction amount. To carry out a withdrawal, it is not mandatory to purchase anything from a shop. To maintain fair record merchants must give the receipt to the people who withdrew money from their PoS. In case if they purchase anything from their shop then receipt of purchases and withdrawal money must be made separate.
Can Anyone Set Up PoS? An acquirer bank works as a middle man and links merchants with issuer banks. Acquirer banks except local banks need no permission from RBI to provide this service. However, this facility will be available only at the verified shops appointed by the acquirer banks. In case of any issue, one can contact the card issuer. If the problem remains unsolved, then the cardholder can lodge a complaint under the Banking Ombudsman Scheme/Ombudsman Scheme for digital transactions.
Curiopedia
The first ATM (automated teller machine) was opened on June 27, 1967, at a branch of Barclays Bank in Enfield, North London, the first of six cash dispensers commissioned by the bank. Customers who needed to withdraw money no longer had to rely on bank cashiers. In 2017, the world’s first ATM was turned into gold for celebrations of its 50th anniversary.
The Illinois lawyer Joseph Zingher is known for holding the patent of ATM SafetyPIN software. ATM SafetyPIN software is an application that would allow users of automated teller machines (ATMs) to alert the police of a forced cash withdrawal by entering their personal identification number (PIN) in reverse order.
The world’s highest ATM is located at the Khunjerab Pass in Pakistan. Installed at an elevation of 4,693 meters (15,397 ft) by the National Bank of Pakistan, it is designed to work in temperatures as low as -40 degrees Celsius.
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