On Friday, April 8, the Reserve Bank of India declared that it intends to make cardless cash withdrawals available at all ATMs across all banks in India. At the moment, only a few banks provide card-less cash withdrawals using ATMs.
‘It is now suggested to use the UPI to make card-less cash withdrawals available across all banks and ATM networks. In addition to improving transactional convenience, the elimination of the necessity for actual cards for such transactions will aid in the prevention of frauds such as card skimming, card cloning, and so on, ‘according to the RBI statement. RBI Governor Shaktikanta Das was announcing decisions taken by the Monetary Policy Committee at a three-day meeting. Das stated that the service will be made available via the Unified Payments Interface, or UPI.
‘In addition to improving transaction convenience, the elimination of the necessity for actual cards for such transactions will aid in the prevention of frauds such as card skimming, card cloning, and so on,’ the RBI governor stated. A cardless cash withdrawal facility eliminates the need for bank customers to utilize their debit or credit cards when withdrawing cash from ATMs. The method is currently accessible at several banks and was used in the aftermath of the Covid-19 outbreak when many people were hesitant to use ATMs.
This approach can reduce ATM fraud since it generates cash using a mobile PIN. The cardless cash withdrawal system leverages the UPI capability to carry out the task. Self-drawing of funds is possible using the cardless cash withdrawal option. However, this facility is not yet available in many banks, and there is a daily transaction limit. This ranges from Rs 10,000 to Rs 20,000, depending on the services provided by the bank.
Customers are being charged an extra transaction fee by a few institutions. With the RBI’s latest statement, more banks are anticipated to participate in providing the service to their cardholders. Cardholders of different banks, including SBI, ICICI Bank, Axis Bank, and Bank of Baroda, can withdraw cash using their phones even if they do not have debit cards. If the cardholder does not have their debit cards, they must usually utilise a mobile banking app to make a request to withdraw cash from ATMs.