Cardless cash withdrawal soon at all bank branches and ATMs via UPI

The Reserve Bank of India on Friday mandated interoperable card-less withdrawal using the UPI platform across bank’s ATM network, to increase customer convenience and plug instances of fraud. The regulator is expected to soon issue detailed guidelines to NPCI, ATM networks and banks, to operationalise the service.

“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,” Shaktikanta Das, Governor, RBI said as part of his monetary policy announcement.

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, that is for the use of their own customers at their own ATMs. The operationalisation of such a service would help in containing frauds like skimming, card cloning, device tampering, among others.