Card-less cash withdrawal facility across all banks’ ATM network soon: RBI


Photo source: PTI (file)

Soon cardless cash withdrawal facility across ATM network of all banks: RBI


  • The facility is proposed to be made available through Unified Payment Interface
  • Such transactions will be settled through the ATM network

To prevent fraud, the Reserve Bank on Friday decided to allow all banks to withdraw cardless cash through ATMs. Currently, cardless cash withdrawals through ATMs are an approved transaction method that some banks in the country offer on our on-come basis (for customers at their own ATMs).

“It is now proposed to offer cardless cash withdrawal facility to all banks and ATM networks using UPI. In addition to increasing the ease of transactions, the absence of actual card requirements for such transactions will help prevent card fraud. Skimming, card cloning, etc.” Shaktikanta Das said this while announcing the bi-monthly monetary policy review.

It is proposed to enable customer authentication through the use of Unified Payment Interface (UPI) when handling such transactions through ATM networks, a statement of developmental and regulatory policies said. Separate directives will be issued to NPCI, ATM network and banks soon, it said.

Regarding the India Bill Payment System (BBPS), he said it is an inter-manageable platform for bill payment, which has increased the amount of bill payments and billers over the years.

In order to facilitate greater penetration of bill payments through BBPS and to encourage participation of a large number of non-bank India bill payment operating units in BBPS, the net pricing requirement of such companies has been reduced from Rs 100 crore to Rs. 25 crores.

Necessary amendments to the regulations will be made soon.

BBPS users enjoy the benefits of standard billing experience, centralized customer grievance redressal system, fixed customer benefit fees, etc. BBPS is an inter-operative platform for bill payment and the scope and coverage of BBPS extends to all classes of billers who raise recurring bills.

It was observed that the number of non-bank India Bill Payment Operating Units (BBPOUs) did not increase similarly.

Observing that payment systems play a catalytic role in facilitating financial inclusion and promoting financial stability, the statement said, the protection and safeguarding of these systems is a key objective of the RBI.

With the increasing adoption of digital payment mode, it is important to ensure that the infrastructure of payment systems is not only efficient and effective but also resilient to the prevailing and emerging risks, especially related to cyber security, it says.

“To ensure that our payment systems are resilient to common and emerging risks, particularly in relation to cyber security, it is proposed to issue guidelines for payment system operators to regulate cyber resilience and payment security,” he said.

Read more: RBI keeps repo rate unchanged for the 11th consecutive time at 4%; FY23 reduces GDP by 7.2%

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