What is it, How it Will Work
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Cardless Cash Withdrawal System: The Reserve Bank of India or RBI has recently announced that the cardless cash withdrawal system has been proposed to be made available in all bank branches and ATMs across India. This will be made available to bank customers with the help of UPI or Unified Payments Interface, developed by the NPCI. This was one of the key decisions made at the Monetary Policy Committee (MPC) meet of the RBI this time.
“At present the facility of cardless cash withdrawal through ATMs is limited only to a few banks. It is now proposed to make cardless cash withdrawal facility available across all banks and ATM networks using the UPI,” Das said while making the announcement.
“In addition to enhancing ease of transactions, the absence of the need for physical cards for such transactions would help prevent frauds such as card skimming, card cloning, etc,” the RBI governor added.
How does Cardless Cash Withdrawal System Work?
As the name suggests, cardless cash withdrawal facility does not require a bank customer to use their debit or credit cards while withdrawing cash from ATMs. The RBI has not mentioned how exactly the system will work through UPI but it has been anticipated that bank ATMs will now have the option. The user can scan a QR code and withdraw cash after entering their UPI pin.
How to Withdraw Cash Without Cards at Present?
Currently, a few banks like ICICI Bank, Kotak Mahindra Bank, HDFC Bank and SBI allow their customers to withdraw cash without using a card.
For an SBI customer who want to withdraw more than Rs 10,000, here are the steps:
Step 1: Download the SBI mobile banking app, YONO
Step 2: Visit your nearest bank ATM
Step 3: Select option to withdraw YONO cash
Step 4: After you enter the amount (Rs 10,000 or more) a screen will pop up prompting you to enter the OTP
Step 5: Cardholders will get the OTP which they have to enter in the ATM screen to complete the transaction
What Analysts Say
“We welcome the RBI Governors’ recent announcement on the cashless withdrawal at ATMs facilitated by the UPI. Digital adoption across quarters, such as today’s move, will empower the users and make our nation ready to leverage the benefits of technology. We envisage this to propel the usage of UPI, as well as, safeguard the users from card-related frauds at the ATMs. The cashless facility would definitely be beneficial to the retail customers and would enable taking a step toward accelerating the pace of digital financial literacy, as well as, financial inclusion in India,” said Bhaskar Chatterjee, VP Products, Ezetap.
At present, there is a daily transaction limit for cardless cash withdrawal that from Rs 10,000 to Rs 25,000, as per the facilities offered by the particular bank.
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