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The Reserve Bank of India (RBI) has asked banks to provide the option of Interoperable Card-less Cash Withdrawal (ICCW) at their ATMs. Currently, cardless cash withdrawal through ATMs is offered by a few banks for their customers at their own ATMs

Ravi B Goyal, Chairman & MD, AGS Transact Technologies Limited said that the RBI’s initiative to introduce interoperability of Cardless cash withdrawals on ATMs and CRMs via UPI can prove to be a game-changer as it will provide added convenience to the end-users especially the new generation which is accustomed to making digital payments via smartphones.

“UPI has revolutionised India's digital payments ecosystem in the past few years benefitting both the merchants and consumers across value chain. Additionally, this solution will make ATM transactions more secure by reducing card-based frauds such as cloning and skimming as well as negating the fear of loss of card," Ravi B Goyal said.

How to withdraw cash from ATMs using UPI

The bank customers can simply scan the QR code on ATM screen to perform the required transaction and authenticate it by entering the mPIN on their smartphone, making it a faster and more secured way of cash withdrawal/deposit. 

From Bank’s perspective, it only requires a software upgrade to enable this solution across its ATM network. We believe that bringing the success of UPI on to a popular channel such as ATM will further the vision of digital India," said Ravi B Goyal. 

This initiative will further boost UPI payments in the country and also reduce the chances of ATM frauds says Pranay Jhaveri, Managing Director - India & South Asia at Euronet Worldwide

“The cardless cash withdrawal circular issued by RBI is primarily aimed at curbing frauds like skimming, card cloning and device tampering. While the pandemic acted as a catalyst, digital transactions in the country have risen exponentially over the last few years because of increasing internet usage and smartphone penetration as well. With this initiative soon all users will have greater freedom to withdraw money at their own convenience, without being restricted by a physical ATM card. This will also allow customers to not face any inconvenience even if their card issuance by the bank is delayed, as banks are currently facing some issues with card supply because of a global chip shortage," said Pranay Jhaveri. 

K Srinivas, Managing Director and Chief Executive Officer – India1 Payments Ltd. said that UPI’s popularity among urban consumers will ensure rapid adoption in this segment.

“ICCW is a great initiative by RBI and this adds a new form factor for ATM cash withdrawal. Cardless withdrawal using Aadhar authentication (AEPS) should be the next step to facilitate ATM access among the semi urban and rural consumers, where the active card percentage is low. Additionally, such withdrawal will improve convenience and security as customers can eliminate cards and thereby, also the risk due to card cloning and other frauds," he said.

In April, the RBI had said the absence of need for a card to initiate cash withdrawal transactions would help in containing frauds like skimming, card cloning and device tampering.

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