Cardless cash withdrawal via UPI at all banks' ATMs soon | How will this benefit you
India Today
Once all banks implement the card-less cash withdrawal system, customers at their home banks' ATMs will be able to use it.
The Reserve Bank of India (RBI) on Friday decided to permit all banks to introduce card-less cash withdrawal through ATMs. Currently, card-less cash withdrawal through ATMs is a permitted mode of transaction offered by a few banks in the country on an on-us basis.
"It is now proposed to make card-less cash withdrawal facility available across all banks and ATM networks using the UPI. 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, etc," RBI Governor Shaktikanta Das said while announcing bi-monthly monetary policy review.
The RBI took the decision in a bid to check fraud.
Once all banks implement the card-less cash withdrawal system, customers at their home banks' ATMs will be able to use it.
The RBI said that the absence of a need for a card to initiate cash withdrawal transactions would help in containing frauds like skimming, card cloning, device tampering.
The transaction at ATMs would done via Unified Payments Interface (UPI).
"To encourage card-less cash withdrawal facility across all banks and all ATM networks / operators, it is proposed to enable customer authorisation through the use of Unified Payments Interface (UPI) while settlement of such transactions would happen through the ATM networks," according to RBI.
