Cardless ATM cash withdrawal: RBI makes big announcement for bank customers

Cardless ATM cash withdrawal with UPI: Soon, bank customers will be able to make cardless cash withdrawal from ATMs of any bank with the help of UPI, according to RBI’s ‘Statement on Developmental and Regulatory Policies’ issued today (April 8, 2022). 

The Reserve Bank of India said that cardless 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). 

However, the central bank noted that 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,” the statement said.

RBI will issue separate instructions to NPCI, ATM networks and banks shortly in this regard.