The Reserve Bank of India announced that it is proposing cardless cash withdrawal from ATMs of all banks in India. Currently, the facility is limited to a few banks.
RBI Governor Shaktikanta Das announced the decisions were made at the three-day meeting of the Monetary Policy Committee. Das says it is recommended to provide this facility through Unified Payments Interface or UPI.
“In addition to improving the ease of transactions, the absence of a physical card for such transactions helps prevent fraud such as card skimming, card duplication, and more,”
RBI Governor Shaktikanta Das
Cardless cash facilities do not require bank customers to use a debit or credit card when withdrawing cash from an ATM. This system is currently available at various banks. It was introduced after the Covid-19 pandemic when many people did not want to go to ATMs.
This system will reduce ATM fraud as it uses a mobile PIN to generate money. The cardless cash withdrawal system uses the UPI facility to do the job. Some banks still have this option with daily transaction limits. This varies from Rs 10,000 to Rs 20,000, depending on the bank.
Some banks are charging extra transaction fees to their customers. Cardholders of various banks, including SBI, ICICI Bank, Axis Bank and Bank of Baroda, among others, can withdraw money through their phones. They mainly have to use mobile banking apps and request cash withdrawals from ATMs if they don’t have a debit card. With the new announcement of RBI, it is expected that more banks will provide this service to cardholders.
