Tag : RBI

    Card-Less Cash Withdrawal Facility Across All Banks' ATM Network Soon: RBI

    Card less Cash
    Sunil Aswal
    April8/ 2022

    New Delhi: The Reserve Bank of India (RBI) said on April 8 it plans to allow interoperable cardless cash withdrawals across all bank ATMs in the country. Such transactions can be completed using the Unified Payments Interface (UPI) facility, Governor Shaktikanta Das said in his statement after the monetary policy announcement. At present, cardless cash withdrawal through ATMs is limited only to a few banks. Read on to understand the nitty-gritties of the announcement and key benefits for customers. How will the interoperable cardless cash withdrawal facility work? Until now, only existing customers of some banks could withdraw cash without a card at their own bank’s ATM network. So, if you are a customer of, say, the State Bank of India (SBI) and want to make a cardless withdrawal, you can do so only at SBI’s ATM. If it’s not located in your vicinity, you have to make the trip to the nearest SBI ATM. Once interoperability is implemented, however, you will be able to withdraw cash from any other bank’s ATM in your location, using the UPI facility. How will the new facility benefit customers? Besides the convenience of making cardless withdrawals from any bank’s ATM, it will also reduce the scope for frauds, RBI governor said in his statement. Since a physical card is not needed, instances of frauds such as skimming, card cloning, device tampering and so on are expected to come down. But why has RBI allowed interoperable cardless withdrawals only via UPI platform? The growing popularity, adoption as also the ease-of-use that UPI facilities could have prompted this move. “As the adoption and popularity of UPI grows, the RBI is attempting to make it a more versatile payment option,” says Adhil Shetty, CEO of BankBazaar.com. Until now ...

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