Personal Finance

Card-less cash withdrawals: Here's what you need to know

Keerthi Sanagasetti | Updated on March 22, 2020 Published on March 22, 2020

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Know the benefits, limits and charges of card-less cash withdrawal services

ICICI Bank in January this year launched card-less withdrawal facility for its mobile banking customers.

The facility was first introduced by State Bank of India, whose customers have been using the facility through YONO (the lender’s mobile banking app) since 2018.

Customers of ICICI Bank and SBI need only a mobile phone to withdraw cash from ATM.

While for SBI customers this facility is available at only select ATMs, ICICI Bank customers can avail themselves of this facility in any of the 15,000 ATMs of the bank.

The procedure is simple. Login to your mobile banking app and generate a cash request by specifying the amount you want to withdraw.

Users also need to generate a temporary PIN.

As a two-step verification, to keep your transactions secured, the bank will also send a one-time password (OTP) on your mobile via SMS. Select the ‘Cash Withdrawal’ option at ICICI Bank ATM (‘YONO cash’ for SBI customers) and enter the details such as the amount, temporary PIN and the OTP generated to withdraw cash.

Limits and charges

Banks do not specifically levy any charges for this facility. However, since these withdrawals will also be considered to calculate ‘free ATM visits’, you may be charged when you exceed that limit.

Savings account customers who are entitled to unlimited free ATM transactions need not fret upon these charges.

Banks, however, have set certain limits on card-less withdrawals. ICICI Bank has set both the daily transaction limit and the per-transaction limit at ₹20,000.

While SBI has also set the daily transaction limit at ₹20,000, the per-transaction limit is ₹10,000. For SBI accounts, where the daily withdrawal limits are lower than ₹20,000, such limits will apply for YONO cash withdrawal as well.

Another point to be noted is the transaction validity. In the case of ICICI Bank, the temporary PIN and OTP will be valid till midnight of the day they were generated, post which another request will have to be generated in the app. For SBI, however, the validity is limited to just four hours.

What do others offer?

Other banks are yet to launch card-less withdrawal facility. One can, however, make use of a third-party transfer option, which most banks offer.

Card-less transfers can be made to beneficiaries who do not have a bank account, let alone a credit/debit card. This third-party transfer facility comes in handy for self-withdrawals as well.

Take for instance, the ‘Cardless Cash Transfers’ permitted by HDFC Bank through its net banking services. Customers can, through this option, transfer money to a beneficiary, by just specifying their mobile number and PAN/ Aadhar/Voter ID number.

The beneficiary can, from the nearest HDFC Bank ATM, withdraw cash by selecting the ‘Cardless Cash’ option on the screen. Post that, the customer will be required to enter the order ID and OTP received on his mobile.

Adding the beneficiary account might take up to 30 minutes, and HDFC Bank charges ₹25 per transaction (plus taxes). Also, a single beneficiary can receive a maximum of ₹10,000 per day or ₹25,000 per month, whichever is lower.

ICICI Bank and SBI also permit such third-party transfers through their internet banking services.

Apart from banks, the UPI platform can soon be used for cash withdrawals. The National Payments Corporation of India (NPCI) has issued a circular, directing its member-banks to enable cash withdrawals from merchant locations through UPI platforms, starting June 1.

Though hassle-free, limits and charges are applicable on withdrawals. The NPCI has reportedly directed the banks to charge customers making such withdrawals, a fee of 1 per cent of the transaction value, up to a maximum of ₹10. Also, you can only make a maximum of three such withdrawals per day, for every UPI ID. That apart, customers can only withdraw a maximum of ₹2,000 or ₹1,000 (depending upon their locations), per day using the UPI platforms.

The bottom line

When you have forgotten your wallet or card and in a dire need of cash, the card-less withdrawal option will surely be helpful if you have your mobile phone with you. With numerous cases of theft and forgery of cards (and related credentials) being reported, card-less withdrawals help tide over such concerns.

However, do remember that you will be at risk if your mobile phone is lost or misplaced. Besides, the cap on the maximum number of withdrawals or the amount that can be withdrawn through the card-less facility is a limiting factor.

Published on March 22, 2020

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