At present, only a few banks offer cardless cash withdrawals through ATMs.
Digital Desk: The Reserve Bank of India announced today (April 8) that it plans to make cardless cash withdrawals available at all ATMs across all banks in India.
At present, only a few banks offer cardless cash withdrawals through ATMs.
"It is now proposed to use the UPI to make card-less cash withdrawals available across all banks and ATM networks. In addition to improving transactional ease, the elimination of the need for physical cards for such transactions would aid in the prevention of frauds such as card skimming, card cloning, and so on," RBI said in a statement.
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RBI Governor Shaktikanta Das announcing the development made by the Monetary Policy Committee during a three-day meeting stated that the service would be made available via the Unified Payments Interface, or UPI.
"In addition to improving transaction ease, the elimination of the need for physical cards for such transactions would aid in the prevention of frauds such as card skimming, card cloning, and so on," the RBI governor added.
A cardless cash withdrawal facility eliminates the need for bank customers to use their debit or credit cards when withdrawing cash from ATMs. The system is currently available at various banks and was implemented after the Covid-19 pandemic when many people were hesitant to use ATMs.
This system will reduce ATM fraud by generating cash using a mobile PIN. The cardless cash withdrawal system uses the UPI facility to carry out the work.
Self-withdrawal of funds is possible with the cardless cash withdrawal facility. 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.
A few banks currently charge customers an additional transaction fee. However, with the RBI's new announcement, more banks are expected 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. However, if the cardholder does not have their debit cards, they must usually use a mobile banking app to make a request to withdraw cash from ATMs.
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