The largest private sector lender of the country, ICICI Bank has introduced a new facility under which customers can withdraw cash at point of sale (POS ) terminals also.
POS terminals refer to the card swipe machines in retail outlets which enable a customer to make payment for his purchases using the plastic form of money that is debit or credit card.
Under the new facility, customers will be allowed to withdraw upto Rs 1000 from these POS bearing merchant locations.
"The facility will be available to all ICICI Bank debit card holders who can withdraw Rs1,000 a day. Cash can be withdrawn with or without associate purchase transaction at an approved and enabled merchant establishment with PoS terminals," the bank said.
RBI had allowed this process one year back and had left the fees chargeable at the discretion of banks. The first bank to launch this system a year back, Union Bank of India, however said that the response of customers was not great.
"We have 31 PoS offering cash withdrawal facility, all in rural areas, but the response has not been very encouraging," said a Union Bank official.