Reserve Bank of India Governor Shaktikanta Das on Friday during the MPC announcement said that the central bank has proposed to make a cardless cash withdrawal facility available at all ATMs across banks in India using Unified Payment Interface (UPI).
“At present the facility of cardless cash withdrawal through ATMs is limited only to a few banks. It is now proposed to make cardless cash withdrawal facility available across all banks and ATM networks using the UPI,” Das said.
RBI Governor Shaktikanta Das said that the absence of the need for physical cards for such transactions would help prevent frauds such as card scheming, card cloning, etc. Cardholders of various banks including SBI, ICICI Bank, Axis Bank and Bank of Baroda, among others, can withdraw cash even without their debit cards, through their phones. The cardholder mostly has to use a mobile banking app and raise a request to withdraw cash at the ATMs if they do not possess their debit cards.
The service operates by the remitter creating an IMT (Instant Money Transfer), which allows it to transfer money using only the mobile number of the beneficiary.
RBI will issue separate instructions NPCI, ATM networks and banks shortly in this regard.