Cardless cash withdrawal will be available at all ATMs soon: Shaktikanta Das

The RBI governor said that cash withdrawal without ATM cards not only enhances the ease of transaction but also reduces the chances of fraud such as card skimming, card cloning and others.

Cardless cash withdrawal will be available at all ATMs soon: Shaktikanta Das
RBI Governor Shaktikanta Das

Mumbai: You will soon be able to withdraw cash from an ATM without bothering to use your ATM or debit card. Shaktikanta Das, governor of the Reserve Bank of India (RBI), announced on Friday that the RBI has suggested making cardless cash withdrawals available at all ATMs across all banks in India.

The governor announced during a three-day meeting of the Monetary Policy Committee. He stated that the proposed facility would be accessible via the Unified Payments Interface, or UPI.

In India, the option to withdraw cash without using ATM cards is currently quite limited, with only a few banks offering this service. "It is now suggested to make cardless cash withdrawal services available across all banks and ATM networks via UPI," Das explained.

The RBI governor said that cash withdrawal without ATM cards not only enhances the ease of transaction but also reduces the chances of fraud such as card skimming, card cloning and others.

Shaktikanta Das also stated that the RBI intends to conduct a review of customer service standards in RBI-regulated firms. It is proposed to form a committee to examine and review the current state of customer service in all RBI-regulated entities as a result of the massive transformation underway as a result of innovations, products, and services, deep penetration of digital banking, and the emergence of various service providers.

The cardless cash withdrawal system was introduced after COVID-19 hit the nation as people were reluctant to visit ATMs because of fear of getting infected with the virus. Few banks are, as of now, offering this facility to their customers.

Consumers of various banks, such as ICICI Bank, Bank of Baroda, SBI, Axis, and a few others, are offering this service. They can withdraw the money with their cards just with the help of their cell phones.

According to experts, because it uses a mobile PIN to generate cash, this technology will reduce ATM fraud. The cardless cash withdrawal system employs the UPI capability to carry out the task. The service works by the remitter generating an IMT (Instant Money Send) that allows it to transfer money using only the beneficiary's mobile number.

With the RBI's latest statement, more banks are anticipated to participate in providing the service to their cardholders.