RBI gives nod for card-less cash withdrawals at ATMs
NEW DELHI: The Reserve Bank of India (RBI) on Friday proposed to make the cardless cash withdrawal facility available across all banks and ATM networks using the Unified Payments Interface (UPI).
The facility is now offered by only a few banks and can be accessed only at the bank’s own ATM network.
“Now, you can send money from a bank account to anyone in India with a valid mobile phone number through cardless cash withdrawal. The beneficiary can then withdraw cash from the ATM without using a debit or an ATM card,” said Adhil Shetty, chief executive officer, Bankbazaar.com.
RBI governor Shaktikanta Das said that in addition to enhancing the ease of transactions, cardless transactions will help prevent frauds such as card skimming and card cloning. The regulator will soon issue separate instructions to National Payments Corporation of India (NPCI), ATM networks and banks.
“Under the facility, a user can authenticate a transaction, and this is expected to add a layer of security and authentication to the transaction,” said Dewang Neralla, chief executive officer, NTT DATA Payment Services India Ltd.
Experts said extending cardless cash withdrawal facility to all banks will add to the bouquet of digital transaction services available to customers. Furthermore, RBI has taken steps to increase penetration of Bharat Bill Payment System (BBPS) payment collection for merchants.
Users of BBPS enjoy a standardized bill payment experience, centralized customer grievance redressal mechanism and prescribed customer convenience fee.