UPI has already revolutionalized digital payments in India. Now, The Reserve Bank of India has introduced cardless transactions at all banks and ATMs using the UPI. For now, limited banks offer card-less cash withdrawal systems at only home banks’ ATMs.
At RBI’s monetary policy meeting held on April 8, 2022, RBI governor Shaktikanta Das said that cardless cash withdrawal will enhance the ease of transactions and will also help prevent frauds such as card skimming and card cloning.
“At present, the facility of cardless cash withdrawal through ATMs is limited only to a few banks. It is now proposed that cardless withdrawal facilities be made available across all banks and ATMs networks using UPI. In addition to enhancing the ease of transactions, the absence of the need for physical cards for such transactions would reduce fraud such as card skimming, card cloning, etc.” said the RBI governor, Shaktikanta Das.
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He further noted that credit and debit cards still have many other utilities. So, banks won’t stop issuing these cards.
NCR Corporation launched the first interoperable cardless cash-withdrawal solution based on the UPI back in April 2021. A few banks are still allowing customers to withdraw cash using any UPI-enabled app. A bank customer just needs to scan the QR code on the screen and enter the UPI pin in the phone to authorize cash withdrawal. Different banks have different cash withdrawals limits and the facility is also only available at limited ATMs.
After RBI’s announcement, UPI-based cash withdrawals should be available to all banks on all ATMs soon.
Separate instructions and more details would be issued to NPCI, ATM networks, and banks shortly, RBI said.
