Offer Card-less Cash Withdrawal Facility Across All ATMs: RBI To Banks

The Reserve Bank of India (RBI) has asked banks to provide their customers with interoperable card-less cash (ICCW) withdrawal at all banks and ATMs using the Unified Payments Interface (UPI) facility.

“All banks, ATM networks and White Label ATM Operators (WLAOs) may provide the option of ICCW at their ATMs. NPCI has been advised to facilitate Unified Payments Interface (UPI) integration with all banks and ATM networks. While UPI would be used for customer authorisation in such transactions, settlement would be through the National Financial Switch (NFS) / ATM networks. The on-us and off-us ICCW transactions shall be processed without levy of any charges other than those prescribed under the circular on Interchange Fee and Customer Charges,” the central bank said in a statement.

It further stated, “Withdrawal limits for ICCW transactions shall be in-line with the limits for regular on-us and off-us ATM withdrawals. All other instructions related to Harmonisation of Turn Around Time (TAT) and customer compensation for failed transactions shall continue to be applicable.”

The central bank, in its April monetary policy meeting, had proposed to allow interoperability in card-less cash withdrawal transactions at all banks and ATMs using the UPI facility.

The absence of need for a card to initiate cash withdrawal transactions would help in containing frauds like skimming, card cloning and device tampering, the central bank had said.

“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 and 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 had stated in Developmental and Regulatory Policies dated on April 8.

What Is Card-less Cash Withdrawal Transaction?

Under the card-less cash withdrawal, customers do not have to use their debit or credit cards for withdrawing cash from ATMs. This system uses a mobile PIN to generate cash. The card-less cash withdrawal system uses the UPI facility to carry out the work.

The card-less cash withdrawal transaction enables the sender to transfer cash from an account to anyone with a valid mobile number across India. The beneficiary can withdraw the amount from any ATM without having to use Debit Card.