Withdraw money, check account balance at merchants
Now you can withdraw cash from a merchant store. Mswipe, a financial services platform, has launched a service called ATM Express. The service allows customers to withdraw cash and check the balance using the point-of-sale (PoS) terminal – the machine that merchants swipe cards on.
Some banks already offer such micro-vending machines. But for traders using Mswipe, the service will be independent from the bank. The merchant who provides this service will earn a commission.
While the service will operate across India, Mswipe is focusing on Tier 2, 3 and 4 cities with ATM facilities and limited bank branches.
According to RBI, as of June 2020, there were around 84 crore of debit card holders and around 2.10 lakh of on-site and off-site ATMs in India. On average, there is an ATM for over 4,000 debit card holders and even fewer in Tier 3 and 4 cities.
The central bank reiterated in May last year that PoS terminals can be used for cash withdrawals. It allowed cash withdrawals through debit cards and prepaid instruments. Cash withdrawals by credit card are not permitted.
RBI also said that the merchant must provide a printed receipt generated by the PoS terminal. If the facility is used with the purchase of goods, the receipt must separately indicate the amount of cash withdrawn.
In the event of a problem, the cardholder must file a complaint with the card issuer. If the card issuer does not respond within the time limit or if the response thus received is not satisfactory, the cardholder can complain to the bank mediation system or the mediation system for digital transactions, according to RBI notification.
Customers can withdraw a maximum of ??10,000 twice a day at the ATM at no additional charge, according to Mswipe’s press release.
âAccess to ATM services continues to be a challenge in Tier 2, 3 and 4 cities due to a limited number of ATMs or non-functional facilities. By layering micro-ATM services on top of the PoS terminals that are available even in the smallest ones allow merchants to simplify the lives of their customers and at the same time generate income for themselves â, said Vivek Patil, Chief corporate – micro ATM and VAS, Mswipe.
Mswipe is one of the largest transmitters with around 6.75 lakh of PoS terminals installed.
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