SBI not to charge fees on PoS cash withdrawals

Lending major State Bank of India on Thursday said that it will not charge any fees from customers who avail the facility of withdrawing cash through its PoS (Point of Sale) machines installed across various merchant locations.

As per Reserve Bank of India (RBI) guidelines, customers can withdraw Rs 1,000 in tier I and II cities whereas Rs 2,000 can be withdrawn in tier 3 to 6 cities per day per card.

"SBI has a total of 6.08 lakh PoS machines of which 4.78 lakh PoS machines are enabled to dispense cash to the customers of SBI and the banks who have enabled this facility for their customers," the bank said in a statement.

The development comes just a few days after Finance Minister Arun Jaitley sought to allay fears amidst reports of a cash crunch and empty ATMs in the country by stating that "there is more than adequate currency in circulation", even as the government blamed "unusual demand" for shortages in some areas.

Besides, the central government announced that it has decided to increase printing of Rs 500 notes by five times.

In addition, the RBI said that it is "taking steps to move currency to areas" which have witnessed unusually large cash withdrawals.

"The shortage may be felt in some pockets largely due to logistical issues of replenishing ATMs frequently and the recalibration of ATMs being still underway. RBI is closely monitoring both these aspects," the RBI had said in a statement on Tuesday.

"Further, as a matter of abundant precaution, RBI is also taking steps to move currency to areas which are witnessing unusually large cash withdrawals."

--IANS

rv/bg