All banks, ATM networks, and White Label ATM Operators (WLAO) may now offer interoperable card-less cash withdrawal at their ATMs, which may come as a comfort to ATM consumers. The Reserve Bank of India, India's central bank, said on April 8 that it planned to allow interoperable cardless cash withdrawals across all bank ATMs in the country.
In his remarks following the monetary policy announcement, RBI Governor Shaktikanta Das stated that this may be accomplished through the Unified Payments Interface (UPI) service. Only a few banks now offer cardless cash withdrawals using ATMs.
When you went to your bank's ATM to withdraw money, you may have observed that the ATM machine offered the option of cardless cash.
When you went to your bank's ATM to withdraw money, you may have observed that the ATM machine offered the option of cardless cash withdrawal. Until date, only existing customers of certain banks have been able to withdraw cash from their own bank's ATM network without a card.
This will change once interoperability is introduced, since users will be able to utilise the UPI capability to withdraw cash from any other bank's ATM in their area.
Customer advantage
According to the RBI Governor, the service would not only be handy for users, but it will also reduce the opportunity for fraud. Because the real card will not be utilised to withdraw cash, the risk of frauds including skimming, card cloning, and device manipulation will be reduced.
How will it function?
While not all banks currently offer UPI-linked cash withdrawal, some do. Consider this scenario: you have a City Union Bank savings account (CUB). The bank allows customers to withdraw cash from ATMs by scanning their UPI QR codes.
Users must select the cardless withdrawal-QR-UPI option and enter the amount they desire to withdraw before moving to the next page when withdrawing money from such ATMs. (At the moment, the bank has set a limit of Rs 5,000 for UPI withdrawals.)
Next, use the BHIM, GooglePay, or PayTm apps to scan the QR code on the ATM, or use your CUB UPI scanner in the mobile app to scan it. To proceed, enter the pin and click pay. Finally, in the ATM machine, select the 'press here' tab for cash option and collect cash.
What if a withdrawal at an ATM that uses this service fails?
In such circumstances, the user must immediately notify their bank. Within seven working days, the funds will be credited to your bank account.
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