Cardless cash withdrawals on all ATMs soon | Fusion - WeRIndia

Cardless cash withdrawals on all ATMs soon

Cardless cash withdrawals on all ATMs soon

Reserve Bank of India (RBI) directed all banks to offer a cardless cash withdrawal facility on all ATMs in April.

The move is aimed at reducing frauds like card cloning, skimming etc. Besides, it boosts UPI payments in the country.

The central bank directed all banks to allow interoperable cardless cash withdrawals on all ATMs and plan accordingly. It will benefit banks, customers, ATM networks and White Label ATM Operators (WLAO).

The interoperability of cardless cash withdrawals can be done through UPI. The UPI facility allows users to withdraw cash from the ATM of any other bank in their location due to the implementation of interoperability. It will ease ATM transactions and make them more secure by curbing various types of fraud.

Currently, only a few banks offer cardless cash withdrawals through ATMs. Customers of these banks can have cardless withdrawal options at their own ATMs.

As RBI directed all banks to offer this facility, it would be a major relief to all stakeholders. Since the physical card is not used to withdraw cash from an ATM, there will be lesser chances for card-based frauds like card cloning, device tampering etc.

Bank customers can simply scan the QR code on the ATM screen to use the cardless withdrawal facility. It will allow them to perform the necessary transaction.

They have to authenticate the transaction by entering the mPIN received on their smartphone. Thus, it is more secure than the card withdrawal. It is faster as well.

Banks need to upgrade their software to enable this facility across their network. The facility will be provided to customers of all banks once the process is completed.

Customers can inform the bank immediately if a cardless withdrawal is failed. The bank will credit back the amount to their account in seven working days.

Image Credit: Richard Tanzer Fotografie / VeroPay, CC BY-SA 3.0, via Wikimedia Commons

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