Reserve Bank of India (RBI) may allow money withdrawals with the help of prepaid cards from the point of sale (PoS) terminals soon, making PoS more efficient. These prepaid cards will be open loop cards issued by banks. The other two types of prepaid cards are semi-closed loop cards that are issued by non-banking finance companies (NBFCs) and close loop cards that are given out by firms in the form of gift vouchers. Last year, both these cards were put under the Payments and Settlement Act by the RBI. “RBI is considering to allow open loop cards to withdraw money from a PoS terminal. RBI is working on issues, like the amount a PoS owner should charge. The decision may come soon,” said a senior executive of a public sector bank. A PoS terminal has limited use; it is mainly used for payment for sale and purchase transaction. On the other hand, an ATM can be used for several other services like balance enquiry and ordering a cheque book. In case of PoS, charges paid by banks are divided among the card-issuing bank, the bank that owns the PoS terminal, the payment company, Mastercard or Visa, and the place where the PoS terminal is located. India has a total 4.7 million PoS terminals. Leading private lender ICICI Bank had recently joined hands with First Data to set up PoS terminals.