TomorrowMakers

Are you tired of carrying around your debit card everywhere you go? Switch to a cardless cash withdrawal service today! With cardless cash withdrawal, you can now withdraw cash from automated teller machines (ATMs) without using your card. This revolutionary facility is already available for cardholders of major banks like SBI, ICICI Bank, and Bank of Baroda, among others. With this feature, you can withdraw cash anytime, anywhere, without worrying about losing or forgetting your card. Read on to learn everything you need to know about cardless withdrawal and how to take advantage of this convenient service.

Soon, bank customers can withdraw cash from ATMs without using debit or credit cards. Reserve Bank of India (RBI) plans to offer cardless cash withdrawal facility using UPI across all banks and ATM networks. With the UPI, cardless cash withdrawals will be possible regardless of the bank, making it easier and more convenient for customers.

The proposed system will also help prevent ATM fraud by using a mobile PIN to generate cash. It will also help reduce the need for physical cards. This not only increases security but also enhances the customer experience. 

Dinesh Khara, the Chairman of SBI, commented that the decision to enable inter-operability in cardless withdrawals at banks would boost QR code-enabled payments. According to him, it’s a logical consequence of this move to establish a strong governance structure for digital payments. These steps will improve the overall customer experience and ensure secure transactions. SBI is committed to offering innovative and secure payment solutions to its customers.

What is cardless cash withdrawal?

Cardless cash withdrawal provides a secure and convenient method for withdrawing cash from ATMs without needing debit or credit cards.

To withdraw money, the customer must scan the QR code on the screen and authenticate the transaction using their UPI PIN.

Also Read: QR-based Coin Vending Machines Announced by RBI – How Will It Work?

What are the prominent features of cardless cash withdrawal?

The prominent features of cardless cash withdrawal are listed below:

• Customers do not require credit or debit cards to withdraw funds from ATMs.
• The ability to withdraw funds anytime, anywhere, within the country.
• The system uses a mobile PIN to generate funds from an ATM.
• A cardless cash withdrawal system utilises a UPI facility to complete the transaction.
• This system is basically for self-withdrawal of cash.
• Customers generally have to use mobile banking apps to raise withdrawal requests at the ATM if they do not hold an ATM card.

Possible challenges in the use of cardless cash withdrawal

Following are some possible challenges in the use of cardless cash withdrawals:

Currently, there are few cardless cash withdrawal-enabled ATMs.
Not all banks are currently providing this facility.
There is a transaction cap of around INR 10,000 (may vary from bank to bank).
There is also a cap on the maximum amount that can be transacted per account in a day.

How to make a cashless withdrawal (procedure to withdraw funds from ATMs using UPI)?

Given below is a sequence of steps to be followed to withdraw cash using UPI from ATMs:

Step 1: Visit your nearest ATM (which is equipped with a facility for cardless cash withdrawal).

Step 2: Select the “Withdraw Cash” option from the ATM screen.

Step 3: Select the UPI option from the ATM screen.

Step 4: A “QR Code” is displayed on the screen.

Step 5: Activate the QR scanner by opening the UPI application through GooglePay, PhonePe, or mobile applications of banks

Step 6: Enter the amount (cash) that you wish to withdraw and click on “Proceed”. 

Step 7: Enter your UPI PIN to complete the transaction (cash withdrawal).

Also Read: RBI gives digital payment apps a boost: ATM cash withdrawals and NEFT/RTGS allowed

The RBI plans to make cardless cash withdrawal facility available across all banks and ATMs using UPI to withdraw cash anytime, anywhere, without a physical card. The proposed system aims to prevent ATM fraud by using a mobile PIN to generate cash, which will help enhance security and customer experience. Cardholders of banks like SBI, ICICI Bank, and Bank of Baroda can already use this service. However, the current challenges include a low number of cardless cash withdrawal-enabled ATMs, a transaction cap, and maximum daily transaction limits.