New Delhi: Shaktikanta Das, governor of RBI (April 8, Friday) announced that Reserve Bank of India has proposed to make cardless cash withdrawal facility available at all ATMs across all banks via Unified Payments Interface (UPI).
The RBI governor, Shaktikanta Das, said this while announcing the decisions that were made during the Monetary Policy Committee meet.
RBI Governor said that the facility is proposed to be made available through the Unified Payments Interface (UPI).
He said that at present, cardless cash withdrawal facility through ATMs is limited only to a few banks.
But now, it has been proposed to make cardless cash withdrawal facility available across all banks and ATM networks using the UPI.
He said this will help in enhancing ease of transactions, no need of physical cards, because such transactions would help to prevent frauds such as card skimming, card cloning, etc.
According to CEO of Tavaga Advisory Services, the use of UPI will enable customer’s verification while settling such transactions.
She further said that this step is being taken to reduce fraudulent transactions even though the monthly limit allowed is a bit restrictive.
What is Cardless Cash Withdrawal Facility?
Cardless Cash Withdrawal means a customer from any bank will not require to have a debit or credit cards while withdrawing cash from ATMs. This facility was introduced at the time of Covid-19 pandemic when several people were rushing to the ATMs to withdraw cash.
Bank customer’s of various banks such as SBI, ICICI Bank, Axis Bank and Bank of Baroda, and several others, can use the facility to withdraw cash even without their debit cards, all they need to have is their phones with their registered phone number. The cardholder mostly has to use a mobile banking app and raise a request to withdraw cash at the ATMs if they do not possess their debit cards.
According to experts, this system will help avoid ATM frauds to withdraw cash. This facility can only be used UPI bank users. The service is operated by creating an IMT (Instant Money Transfer), which allows to transfer money using only with the help of registered mobile number of the beneficiary.
The cardless cash withdrawal facility allows only for self-withdrawal of money. Also, there is a range of cardless cash withdrawal i.e from Rs 10,000 to Rs 25,000 according to the bank.
Also, some bank charges customers on additional transactions. Now with RBI’s new announcement today, With the RBI’s new announcement, more banks are expected to join in to provide the service to its cardholders.
