Now Go Cardless Easily With UPI Cash Withdrawal: Report
- Business Banks Finance
Andrey Ivanov- 0
- 6 minutes read
RBI (Reserve Bank of India) in its monetary policy meeting that was held on April 8, 2022, proposed to enable the ability in cardless withdrawal of cash at all banks and ATMs by using UPIs. This proposal of UPI cash withdrawal was stated by the RBI governor Shaktikanta Das. He said,
“At present, the facility of cardless cash withdrawal through ATMs is limited only to a few banks. It is now proposed that cardless withdrawal facilities be made available across all banks and ATMs networks using UPI. In addition to enhancing the ease of transactions, the absence of the need for physical cards for such transactions would reduce fraud such as card skimming, card cloning, etc.”
As per the statement of RBI on Developmental and Regulatory Policies, that was released on April 8, 2022,
“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 the 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 authorization 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.”
UPI Cash Withdrawal To Go Cashless
In April last year, NCR Corporation released the first IICCW (interoperable cardless cash-withdrawal) solution that was based on the UPI platform. This UPI cash withdrawal facility enables users to withdraw cash using their mobile with any UPI supported application like Paytm, GPay, BHIM, etc. There is no requirement to swipe or carry a card while getting into the UPI-enabled ATMs. A user is required to scan the QR code on the screen and authorize UPI cash withdrawal SBI and other banks via his or her mobile phone.
UPI Cash Withdrawal At Banks
Many banks at this time provide the facility of cardless cash withdrawals at their own ATMs. As per the HDFC Bank website,
“Cardless cash withdrawal request can be initiated for a minimum of Rs.100 per transaction and up to a maximum of Rs.10,000 per day or Rs.25,000 per month for a beneficiary (The limits are subject to change as per regulatory guidelines).”
Also, HDFC Bank users should note that a successful UPI cash withdrawal request will be valid for 24 hours from the time it was submitted. After 24 hours, the request will be inverted to the account that was debited by the initiator.
A cardless withdrawal of cash transactions enables the sender to send money directly from a Bank account to anyone in India who has a valid mobile phone number. Without having to use a Debit Card or an ATM, the beneficiary can withdraw the funds from the ATM. According to Dilip Modi, Founder, of Spice Money,
“The apex bank of India has today announced that card less ATM withdrawals will be made available across all bank ATMs. Although some banks have ATMs which allow these transactions, RBI governor Mr. Shaktikanta Das has announced this facility will now be available across all bank ATMs and will be using the Unified Payments Interface (UPI) platform for the disbursal of cash.”
Talking about the UPI cash withdrawal proposal by RBI, he further said,
“While the pandemic did act as a catalyst, digital transactions in our country have risen exponentially over the last few years because of increasing internet and smartphone penetration as well. We consider ourselves to be fortunate to have been at the forefront of this change, and we understand that with this initiative, soon all users will have greater freedom to withdraw money at their own convenience, without being restricted by a physical ATM card."
Conclusion
On Friday, the RBI (Reserve bank of India) released a mandate that proposed UPI cash withdrawal with which the users can go cardless in the ATMs and also in the banks. This was done to increase the convenience of the users and plug cases of fraud. The regulator is expected to soon issue the more detailed guidelines to NPCI, banks, and ATM networks for operation. Once the proposal is operational you can search for a UPI enabled ATM near me.
