Personal Finance

It’s cardless ATMs to the rescue

Arvind Jayaram | Updated on January 23, 2018


All that is required is a mobile phone

Been in situations where you need to urgently send money to someone who doesn’t have a bank account or debit card?

Consider the instant money transfer (IMT) facility offered by a handful of banks.

Executing a transfer

The process of executing an IMT varies across banks. ICICI Bank asks users to log into their internet banking account to initiate a cardless IMT. Bank of India and Axis Bank additionally allow you to execute the transfer from specified ATMs. IndusInd Bank has linked the facility to its free mobile banking application and allows transactions to be initiated at select ATMs.

The first step is to register the details of the recipient of the IMT, including name, mobile number and address. While most of the banks allow you to register the user in a similar fashion to NEFT, Axis Bank requires the recipient to register at a bank branch along with identity and address proofs. Next, select the beneficiary in either your internet banking account or your mobile app. Specify the IMT amount and authenticate the transaction using your net banking details or debit card PIN. You will then be provided with a four-digit code via SMS, which you need to give the recipient.

Simultaneously, the recipient will receive an SMS intimation of the transfer along with a six-digit code. If you are initiating the transaction at an ATM, provide the mobile number of the beneficiary and the IMT amount, as well as specify a unique IMT code that identifies the transaction.

And that’s it! The receiver of your funds can now head to an IMT-capable ATM and key in the mobile number, the four-digit sender code (which you received) and the six-digit receiver code to withdraw the funds. You can cancel the transaction and monitor the status of the IMT.

Keep in mind

The biggest hurdle is that this facility doesn’t work on all ATMs. Banks provide a list of ATMs from which cardless withdrawals can be made. Two, only a few banks offer this facility. Three, partial withdrawal of IMT funds is not allowed currently.

The amount you can transfer is also capped — ICICI Bank and Bank of India permit up to ₹10,000 in a single transaction. Axis Bank and IndusInd Bank limit it at ₹5,000. All banks have an upper limit of ₹25,000 a month per recipient.

Four, transactions also have an expiry date, which ranges from up to midnight of the following day in the case of Axis Bank to 14 days from the date the transaction was initiated for Bank of India. If the transaction is not completed by this deadline, it is automatically cancelled and the money reversed to the sender’s account. Finally, there’s a ₹25 fee attached for every transaction, even if you cancel it later.

Published on April 19, 2015

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