RBI LIKELY TO ALLOW PREPAID CARDS FOR PoS WITHDRAWALS

RBI is considering to allow prepaid open loop cards issued by the banks to withdraw money from a Point of Sale (PoS) terminal.


There are three kinds of prepaid cards. Banks generally issue Open Loop Cards, while NBFCs issue semi-closed loop cards. Close loop cards are issued by firms issuing gift vouchers.


At present, there are 4.7 million PoS terminals in the country. A PoS terminal is predominantly used for payment for sale and purchase transaction, while ATM can be used for several other services like balance enquiry.


Source: http://www.business-standard.com/india/news/rbi-likely-to-allow-prepaid-cards-for-pos-withdrawals/382702/