Cardless cash withdrawals at all banks and ATMs soon. How will this benefit you?
Soon, bank customers will be able to withdraw cash without a card from ATMs of any bank. The Reserve Bank of India (RBI) on Friday proposed to make available a cardless cash withdrawal facility at all banks and Automated Teller Machine (ATM) networks using a unified payment interface ( UPI).
“It is now proposed to make cardless cash withdrawal service available at all banks and ATM networks using UPI,” RBI Governor Shaktikanta Das said.
This system will limit ATM fraud as it uses a mobile PIN to generate money.
“In addition to making digital payments transparent, one of UPI’s greatest contributions has been to facilitate a standardized flow for secure authentication to a bank account. This use case has been made ubiquitous with the ability to integrate not only with banking apps but also with 3rd party apps like Google Pay and PhonePe as well There are many more use cases for UPI and this is what we are seeing with cardless ATM withdrawals Although some banks have already enabled this, it is good to see that all banks will soon support this feature, which would further increase convenience and improve security,” said Sumit Gwalani, co-founder of neobank Fi .
“Measures to enable interoperability of cardless withdrawals at banks will give further impetus to QR code payments. The decision to put in place a strong governance structure for digital payments is a logical corollary of this decision,” said Dinesh Khara, President of SBI.
What is a cardless cash withdrawal?
The cardless cash withdrawal service does not require bank customers to use their debit or credit card when withdrawing cash from ATMs.
- 24X7 service to withdraw cash, anywhere in India
- Safe and secure cash withdrawal method
- Get cash instantly without any ATM card
- Under the cardless cash withdrawal facility, a customer is not required to use their debit or credit card when withdrawing cash from ATMs.
- This system uses a mobile pin code to generate money.
- The cardless cash withdrawal system uses the UPI facility to do the job.
- The cardless cash withdrawal service can be used for automatic cash withdrawal.
- However, few banks still have this facility and there is a daily transaction limit.
- The cardholder must mainly use a mobile banking application and request cash withdrawals from ATMs if he does not have his debit card.
Banks with a cash withdrawal service without a card
Cardholders of various banks, including SBI, ICICI Bank, and Bank of Baroda, among others, can withdraw money even without their debit card, through their phone.
Here’s how the cardless cash withdrawal service works:
- The cardless cash withdrawal facility can be initiated by savings account holders through mobile and internet banking.
- Some banks allow this facility through ATMs with the ability to withdraw cash without a card.
- The recipient should go to ATMs that provide cash withdrawals without a card, where money can be withdrawn after entering the received code on the mobile phone number.
- These transactions are capped at ₹5,000 or ₹10,000.
- There is also a cap on the maximum amount that can be processed per account in one day.
Download the app to get 14 days of unlimited access to Mint Premium absolutely free!