RBI proposes interoperable cardless cash withdrawal at ATMs 

BL Mumbai Bureau | | Updated on: Apr 08, 2022
Customers will now be able to do cardless cash withdrawals at ATMs of all banks. 

Customers will now be able to do cardless cash withdrawals at ATMs of all banks.  | Photo Credit: NAGARA GOPAL

At present, the facility of cardless cash withdrawal through ATMs is limited only to a few banks

Reserve Bank of India Governor Shaktikanta Das, on Friday, announced a proposal to make cardless cash withdrawal facility available across all banks and ATM networks using the Unified Payments Interface.

“In addition to enhancing ease of transactions, the absence of the need for physical card for such transactions would help prevent frauds such as card skimming, card cloning,” he said.

Customers will now be able to do cardless cash withdrawals at ATMs of all banks. At present, the facility of card-less cash withdrawal through ATMs is limited only to a few banks.

Settlement of such transactions would happen through the ATM networks.

Separate instructions would be issued to NPCI, ATM networks and banks shortly, the RBI’s Statement on Developmental and Regulatory Policies said.

Experts said the move will also enhance customer convenience and give a further push to digital payments in the country as UPI is turning into the preferred payment mode for many individuals.

“The measures to allow interoperability 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, State Bank of India.

Mandar Agashe, Founder, Managing Director and Chairman, Sarvatra Technologies, said the facility will be favoured by youngsters who don’t carry debit cards.

“Since it is contactless, it will enhance convenience, and customers could expect a very different transaction experience going forward. With people preferring contactless payments nowadays, the ATM card-less withdrawals would be a big boost to contactless payments,” he said.

Published on April 08, 2022
COMMENTS
This article is closed for comments.
Please Email the Editor

You May Also Like

Recommended for you