How cardless cash withdrawals at bank ATMs via UPI will work
The Reserve Bank of India (RBI) has announced that people won’t need ATM cards to withdraw cash from their banks soon. In a major development, the RBI has removed the need for cards for cash withdrawal through ATMs. Yes! Now customers will be able to withdraw money from bank ATMs via UPI (Unified Payment interface), RBI said while announcing bi-monthly monetary policy review.
Currently, only a few banks allowed cardless cash withdrawal through ATMs {for their customers at their own ATMs}. However, it is now proposed that the same facility should be available across all banks and ATM networks using the UPI. This will not only ease transactions, but would also help prevent frauds such as card skimming, card cloning, etc.
The RBI will issue separate instructions to NPCI, ATM networks and banks shortly.
Talking about the adoption of digital payment modes, and its emerging risks, specifically those relating to cyber security, RBI said, "To ensure that our payment systems remain resilient to conventional and emerging risks, specifically those relating to cyber security, it is proposed to issue guidelines on Cyber Resilience and Payment Security Controls for Payment System Operators".
Know how the cardless transactions work.
UPI already allows users to send money from a bank account to anyone in India with a valid mobile phone number with just one tap. The same feature will be applicable to cardless cash withdrawal from the ATMs. Users will need to log in to the Mobile app of the concerned bank and initiate a Cardless Cash withdrawal transaction. Now they can withdraw cash from the Bank's ATMs across India, without any ATM Card or withdraw cash from local shops offering Cardless Cash withdrawal services by using an SMS and 4-digit
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