Soon, bank customers will be able to make a cardless cash withdrawal from ATMs of any bank. The Reserve Bank of India (RBI) on Friday proposed to make a cardless cash withdrawal facility available across all banks and automated teller machine (ATM) networks using a unified payments interface (UPI).
"It is now proposed to make cardless cash withdrawal facility available across all banks and ATM networks using the UPI," RBI Governor Shaktikanta Das said.
This system will curb ATM fraud as it uses a mobile PIN to generate cash.
"Apart from making digital payments seamless, one of the biggest contributions of UPI was facilitating a standardised flow for secure authentication to a bank account. This use case was made ubiquitous with the ability to integrate not just with banking apps but third party apps like Google Pay and PhonePe as well. There are a lot more use cases for UPI and this is what we are seeing with cardless withdrawals from ATMs. While some banks have enabled this already, it's great to see that all banks would soon support this feature, which would further increase convenience and improve security," said Sumit Gwalani, co-founder of neobank Fi.
“The measures to allow inter-operability in card-less withdrawal at banks will give a further impetus to QR code-enabled payments. The decision to set up a robust governance structure for digital payments is a logical corollary of this move,” said Dinesh Khara, Chairman, SBI.
What is a cardless cash withdrawal?
The cardless cash withdrawal facility does not require bank customers to use their debit or credit cards while withdrawing cash from ATMs.
Banks having cardless cash withdrawals facility
Cardholders of various banks including SBI, ICICI Bank, and Bank of Baroda, among others, can withdraw cash even without their debit cards, through their phones.
Here's how the cardless cash withdrawal facility works:
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