Demonetisation proves to be boon for retail outlets with PoS terminals
Demonetisation proves to be boon for retail outlets with PoS terminals
With the effects of demonetisation on common people and pressure building upon the banks, the Reserve Bank of India has clearly mandated that shops with PoS terminals can extend this service to bank account holders carrying their debit cards. 
Around 150 high-end retail outlets across the country have decided to dispense cash from their points of sale (PoS) machines, a move that was initiated by Big Bazaar and Inox a few weeks ago.
Banks that provide these terminals to retail outlets will have to tweak them in such a way to allow both payments and cash withdrawals by customers.
The regulator has also instructed banks to do the due diligence on such shopkeepers and mandated the stores to display prominently the availability of cash and permission to withdraw even if the customers do not make any purchases.
Viren Shah, President of Federation, Retail Traders Welfare Association, said, "By the end of this week, close to 150 high-end stores will start providing cash at their PoS machines subject to availability of funds. Most of these stores use Axis Bank, HDFC Bank, State Bank of India and ICICI Bank terminals, which will now be upgraded to PoS machines."
As the banking system is stretched beyond capacity because of heavy rush for cash withdrawals, such a step will help ease the pressure, feel industry observers.
Retail outlets, which see a minimum turnover of Rs 2 lakh per day, will be updated with this facility. They will be allowed to dispense up to Rs 2,000, which will be recycled by payments from customers.
Shah said, "We will not be charging the customer for this facility, but banks will pay us Rs 5 for each successful transaction."
One of the manager of a retail outlet, which will soon be extending the service, said, "We will not go in for wide scale promotion of this service at this juncture as it could lead to increase in pressure, which we will not be able to support."
 
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