Soon, you will be able to withdraw cash from an ATM without a card

So, what is cardless cash withdrawal? In simple words, this service will allow anyone to take out money from the ATM without using their debit or credit card.

The Reserve Bank of India (RBI) recently proposed to introduce cardless cash withdrawals at all ATMs across the country. This will be made possible through the Unified Payment Interface (UPI). As of March 2021, UPI crossed 5 billion transactions in a month for the first time.

The cardless cash withdrawal service was announced by RBI Governor Shaktikanta Das earlier this month. "It is now proposed to make cardless cash withdrawal facility available across all banks and ATM networks using the UPI," Das said in his first monetary policy statement for the financial year 2022-23.

So, what is cardless cash withdrawal? In simple words, this service will allow anyone to take out money from the ATM without using their debit or credit card. Highlighting more on how the cashless transaction will work, Sonali Kulkarni, Lead for Financial Services, Accenture in India, said that ATMs will soon show an option to withdraw cash using UPI.

Kulkarni explained two ways that the cardless ATM withdrawal could work, but there’s still not much clarity on the final process yet.

Step 1: The customer will need to enter details of the request at the ATM terminal

Step 2: ATM will then generate a QR code

Step 3: The customer then scans the QR code using the UPI app and approves the request