“This would also be helpful to the millions of people in rural and semi urban areas who have opened bank accounts under the Prime Minister’s Jan Dhan Yojana and have debit cards but no access to an ATM machine in their neighbourhood,” Payworld said in a statement here.
Payworld has tied up with the State Bank of India to operate the scheme, it said.
The retailer will use the Payworld App installed on the smartphone by attaching the card reader to the phone.
“All he has to do is to swipe the walk in the customer’s Debit card, and on authorisation by the bank pay out the cash,” Payworld said.
Any person with a debit card can take out a maximum of Rs.2,000 in cash from this cash out facility of Payworld, which only provides technology and hardware to its retailers who opt for this service.
The company is targeting tier-III and IV cities and rural areas where bank branches and ATMs are scattered.
“Our initial plan is to launch the scheme with 500 retailers and gradually scale it up to over 5,000 by March 2016,” Payworld chief operations officer Praveen Dhabhai said.