The Reserve Bank of India (RBI) in its monetary policy meeting held on April 8, 2022 has proposed to allow interoperability in cardless cash withdrawal transactions at all banks and ATMs using the UPI facility.
“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.
“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 (for their customers at their own ATMs). The absence of need for a card to initiate cash withdrawal transactions would help in containing frauds like skimming, card cloning, device tampering, etc. 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. Separate instructions would be issued to NPCI, ATM networks and banks shortly,” RBI’s statement on Developmental and Regulatory Policies, released on April 8, 2022 stated.
UPI’s cashless card facility
In April 2021, NCR Corporation launched the first interoperable cardless cash-withdrawal (ICCW) solution based on the UPI platform.
This facility allows customers to withdraw cash using their mobile with any UPI enabled app such as BHIM, Paytm, GPay etc. There is no need to swipe or carry a card while visiting the UPI-enabled ATMs. An user needs to scan the QR code on the screen and authorise cash withdrawal through his or her mobile phone.
Cardless cash withdrawals at banks
Many banks at present offer the facility of cashless card withdrawals at their own ATMs.
According to HDFC Bank website, “Cardless cash withdrawal request can be initiated for a minimum of Rs.100 per transaction and up to a maximum of Rs.10,000 per day or Rs.25,000 per month for a beneficiary (The limits are subject to change as per regulatory guidelines).”
Also, HDFC Bank customers should note that a successful cardless cash withdrawal request will be valid for 24 hours from the moment it was submitted. After 24 hours, the request will be reversed to the account that was debited by the initiator.
A Cardless Cash Withdrawal transaction allows the sender to send money from a Bank account to anyone in India who has a valid mobile phone number. Without having to utilise an ATM or a Debit Card, the beneficiary can withdraw the funds from ATM.
Dilip Modi, Founder, Spice Money said, “The apex bank of India has today announced that card less ATM withdrawals will be made available across all bank ATMs. Although some banks have ATMs which allow these transactions, RBI governor Mr. Shaktikanta Das has announced this facility will now be available across all bank ATMs, and will be using the Unified Payments Interface (UPI) platform for the disbursal of cash.
While the pandemic did act as a catalyst, digital transactions in our country have risen exponentially over the last few years because of increasing internet and smartphone penetration as well.
We consider ourselves to be fortunate to have been at the forefront of this change, and we understand that with this initiative, soon all users will have greater freedom to withdraw money at their own convenience, without being restricted by a physical ATM card.”
According to ICICI Bank website, these are Cardless Cash Withdrawal FAQs
What is a Cardless Cash Withdrawal transaction?
A Cardless Cash Withdrawal transaction enables the sender to transfer cash from an ICICI Bank account to anyone with a valid mobile number across India. The beneficiary can withdraw the amount from any specified ICICI Bank ATM without having to use an ATM or Debit Card.
Who is eligible to avail of the Cardless Cash Withdrawal facility?
The Cardless Cash Withdrawal facility can be initiated by any ICICI Bank Current Account customer (sender) registered for Corporate Internet Banking (CIB) with transaction access. The beneficiary may or may not be a Bank customer. In case of bulk payments, customer needs to be enabled for Bulk Cardless Cash Withdrawal on CIB.
What are the pre-requisites for using a Cardless Cash Withdrawal transaction?
To avail Cardless Cash Withdrawal service, you need to be registered with ICICI Bank Corporate Internet Banking (CIB) with transaction access. In case of bulk payments, customer needs to be enabled for Bulk Cardless Cash Withdrawal on CIB. To register for CIB or get additional access of Bulk Cardless Cash Withdrawal, simply visit the nearest ICICI Bank branch.