In a move to ease the cash crunch after the scrapping of Rs 500 and Rs 1,000 notes, the government has decided to allow dispensing cash of up to Rs 2000 at select petrol pumps by swiping debit cards per day per person, starting today.
Initially, the facility would be available at petrol pumps that have PoS terminals (card swipe machines) from SBI.
According to a report in The Times of India, over the next three days, the facility will be extended to those petrol pumps with POS machines of HDFC Bank, Citibank and ICICI Bank.
The government aims to cover 20,000 petrol pumps with this move.
This facility to withdraw cash from fuel stations will continue even after November 24, the last day to use the old Rs 500 and Rs 1,000 currency note for essential services.
The public sector oil companies have urged the customers to use other cashless transaction modes to pay up at the fuel stations.
The details of the plan to use pumps to dispense cash were worked out on Thursday at a meeting between senior executives of Indian Oil, Hindustan Petroleum and Bharat Petroleum and SBI chief Arundhati Bhattacharya.