Card less cash withdrawal at Bank ATM’s will be a reality soon. The RBI is set to roll out this initiative to check bank fraud. The Reserve Bank of India on Friday decided to permit all banks to introduce this service. Currently, 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).
“It is now proposed to make card-less cash withdrawal facility available across all banks and ATM networks using the UPI. In addition to enhancing ease of transactions, the absence of the need for physical card for such transactions would help prevent frauds such as card skimming, card cloning, etc,” RBI Governor Shaktikanta Das said while announcing bi-monthly monetary policy review.
RBI to permit all banks to introduce card less cash withdrawal through ATMs.
The proposal will further enable customer authorisation through the use of Unified Payments Interface (UPI) while settlement of such transactions would happen through the ATM networks, a statement on Developmental and Regulatory Policies said.
Separate instructions would be issued to NPCI, ATM networks and banks shortly, it said.
With regard to Bharat Bill Payment System (BBPS), he said, it is an interoperable platform for bill payments, which has seen an increase in the volume of bill payments and billers over the years.
To further facilitate greater penetration of bill payments through the BBPS and to encourage participation of a greater number of non-bank Bharat Bill Payment Operating Units in the BBPS, it is proposed to reduce the net worth requirement of such entities from ₹ 100 crore to ₹ 25 crore.
The necessary amendment to regulations will be carried out shortly.
