RBI allows PoS cash withdrawal
Customer convenience in the use of plastic money is imperative and in a move to enhance this, the Reserve Bank of India (RBI) has now allowed cash withdrawal from point of sale (PoS) terminals across the country.
According to a circular issued by the apex bank, all customers using debit cards issued in India can withdraw up to Rs1,000 per day from PoS terminals.“The facility is available irrespective of whether the card holder makes a purchase or not. Also, In case the facility is being availed along with the purchase of merchandise, the receipt generated shall separately indicate the amount of cash withdrawn,” the RBI said.
However, there is no mention of service cess or any other charges for the cash withdrawals at PoS.
PoS terminals are available at merchant establishments and withdrawals can be made when a designated bank assigns the establishment after a due diligence process. This will ease the process of withdrawing cash when an ATM facility is not available in the vicinity for debit card holders.
In India there were 44,857 ATMs and 470,237 PoS terminals at the end of May, the apex bank said.
However, banks can start the facility only after receiving an approval from their respective boards. Banks offering this facility will also have to put in place a proper customer redressal mechanism and complaints in this regard will fall within the ambit of the Banking Ombudsman Scheme.
According to the circular, after receiving approvals from their respective boards, banks offering this facility need to obtain one-time permission from the Department of Banking Operations and Development at RBI.
–Aditya Kshirsagar [email protected]


  • Like this story? Get our top stories by email.


    Cadila Healthcare launches generic drug for treatment of Parkinson’s

    Drug firm Cadila Healthcare Ltd said it launched a generic Pramipexole tablets, used for treating Parkinson's disease in the US market.

    The company's subsidiary Zydus Cadila launched Pramipexole tablets in the strengths of 0.125mg, 0.25mg, 0.5mg, 1mg and 1.5mg, Cadila Healthcare said in a filing to Bombay Stock Exchange (BSE).

    According to healthcare information solutions company, NDC Health, the sale of Pramipexole tablets in 2010 is estimated to be $632 million.

    Pramipexole's patent, which has expired, was held by German drug maker Boehringer Ingelheim. Parkinson's disease is a progressive disorder marked by muscle rigidity, weakness, shaking, tremor, and eventually difficulty in walking and talking.

    On Thursday, Cadila Healthcare shares ended 0.8% up at Rs694 on the Bombay Stock Exchange, while the benchmark Sensex closed 0.9% down to 20,497 points.

  • Like this story? Get our top stories by email.




    9 years ago

    we know from our souces that you are launching your generic div. so we are interested to handle all rajasthan as c&f or distributor

    PMS in troubled waters
    Frequent churning of portfolio, high management fees followed by dismal returns and dwindling profitability is leading to several Asset Management Companies (AMCs) exiting the portfolio management service (PMS) business. Such exits would have not been normally noticed because PMS is a privately sold service. But one of them, from Franklin Templeton, has turned controversial after the fund house abruptly exited from the PMS business, leaving the investors and distributors high and dry. According to distributors, Franklin Templeton has failed to offer enough reasons to them and investors for impetuously pulling out two equity products—FT Select and FT Opportunities.

    The distributors are now angry with the fund house for putting them in an awkward situation in front of the clients, to whom they were once encouraged to sell PMS. “During the bull run, AMCs tried to convert PMS from a large value item into a retail item. But as the market crashed, they realised that it was not the right place for them to be,” said T Srikanth Bhagavat, managing director, Hexagon Capital Advisors Pvt. Ltd. Zankhana Shah, co-founder, Moneycare Financial Planning Ltd, said, “I was surprised with Templeton’s move. I had to incur 50% loss because of this.”

    In an attempt to underplay the crisis, Harshendu Bindal, president, Franklin Templeton Investments India said, “We haven't closed down our PMS business but pulled out only two equity products—FT Select and FT Opportunities.”

    Before 2005, if an investor wanted to enter the PMS business, the entry level charge used to be anywhere between Rs50 lakh and Rs1 crore. During 2005- 2006 when the stock market was bullish, AMCs had slashed the PMS entry level charge between Rs5 to Rs10 lakh in a bid to attract more retail customers.

    Besides Templeton, DSP BlackRock Investment Managers has also shut down its PMS business.

    The profit-sharing fee charged by most PMS houses is also on the higher side. Most PMS houses charge 20% more than the hurdle rate profit-sharing ratio. Even if the scheme shows poor performance, the PMS house charges a fixed fee which is very high. Again there is no control on the cost in terms of churning and the brokerages paid to distributors. There is no transparency in the process.

    Some distributors don’t even like PMS. “I do not like PMS schemes and I do not sell these schemes. It’s my personal choice as I am not convinced with what fund houses like Templeton have done,” said Kolkata-based Brijesh Dalmia, founder, Dalmia Advisory Services.
    When asked whether PMS is a dubious product because of high costs and poor returns, Dalmia said,”PMS is a good product but the paradox is that customers do not understand it. PMS is sold as a customised product, but in reality, it is not. This is because the cost is very high compared to other investment options available in the market. The taxation is not suitable for customers. Besides, there is no control on the churning part by the fund house or the fund manager.”
    “I find there is no logic to differentiate PMS from a mutual fund. The PMS schemes are operated in a manner where there is no fixed fee structure and capping on expenses on churning. This is obviously not in the interest of the client. In the last couple of years, I have not seen any PMS which has beaten the benchmark index of any diversified equity fund. Of course, PMS will be promoted by the distributors and financial advisors because of high commission offered by the fund houses which range anywhere between 2%-4%,” said Dalmia.
    Vidyut Kumar Ta & Pallabika Ganguly [email protected]
  • Like this story? Get our top stories by email.


    We are listening!

    Solve the equation and enter in the Captcha field.

    To continue

    Sign Up or Sign In


    To continue

    Sign Up or Sign In



    online financial advisory
    Pathbreakers 1 & Pathbreakers 2 contain deep insights, unknown facts and captivating events in the life of 51 top achievers, in their own words.
    online financia advisory
    The Scam
    24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
    Moneylife Online Magazine
    Fiercely independent and pro-consumer information on personal finance
    financial magazines online
    Stockletters in 3 Flavours
    Outstanding research that beats mutual funds year after year
    financial magazines in india
    MAS: Complete Online Financial Advisory
    (Includes Moneylife Online Magazine)
    FREE: Your Complete Family Record Book
    Keep all the Personal and Financial Details of You & Your Family. In One Place So That`s Its Easy for Anyone to Find Anytime
    We promise not to share your email id with anyone