You will soon be able to use UPI for cardless cash withdrawals at all banks and ATMs

• Bank customers across India will soon be able to make cardless cash withdrawals from banks and ATMs using UPI.
  
• At present, cardless cash withdrawal facility is different at each bank, and requires you to use the respective bank’s mobile app.
  
• RBI says this should help reduce frauds such as card cloning, card skimming, etc.
  

The Reserve Bank of India has proposed to allow cardless cash withdrawals from all banks and ATMs using UPI (Unified Payments Interface), further reducing the need for debit cards and promoting the digital economy.

At the Monetary Policy Committee (MPC) meeting earlier today, RBI governor Shaktikanta Das put forward the proposal. At the moment, only select ATMs and banks support cardless cash withdrawals, and the implementation varies from bank to bank.

Using UPI will not only standardise cardless cash withdrawals, but also reduce the risk of card cloning and other similar frauds.

“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,” said Shaktikanta Das.

“In addition to enhancing ease of transactions, the absence of the need for physical cards for such transactions would help prevent frauds such as card skimming, card cloning, etc.,” he added.

What is cardless cash withdrawal facility?

As the name suggests, cardless cash withdrawal facility lets you withdraw cash from ATMs without using the debit or credit cards. This facility was introduced during the COVID-19 pandemic when touchless transactions were being promoted to help reduce the spread of coronavirus.

At present, SBI, ICICI Bank, Axis Bank and others offer cardless cash withdrawal facilities. The system is different for each bank and requires you to have the bank’s mobile app installed and activated on your smartphone.

Now with UPI being added as an option, it is expected to be more standardised, although the rollout might still take some time.

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