On April 8th, the Reserve Bank of India (RBI) announced that it intends to permit cardless monetary transactions throughout all bank ATMs in the nation. Such transactions could be accomplished through the Unified Payments Interface (UPI), according to Governor ShaktikantaDas' statement following the monetary policy announcement.
At the moment, cardless cash withdrawals from ATMs are limited to only a few banks.
How would the cardless atm withdrawal service function?
Till now, only current customers of certain banks could withdraw money through their own bank's ATM network without the need for a card. So, for instance, if you are a customer of the State Bank of India (SBI) and would consider making a cardless withdrawal, you could only be able to do so at SBI's ATM. If it wasn't in your immediate vicinity, you must travel to the closest SBI ATM. However, once interoperability is in place, users would be able to withdraw funds from every other bank's ATM in one's area by using the UPI facility.
Benefits of the New Cashless Facility
In addition to improvements of attempting to make cardless withdrawal effects from any bank's ATM, the RBI governor stated in his statement that it will decrease the possibilities for fraud as a physical card is no longer required, scams including temperament with the device, card cloning, skimming, etc, are likely to reduce.
How would the process work?
Presently, all the banks do not provide cash withdrawal services via UPI. In the case of banks that do provide such services, the following is an instance of how it works- Assume that you have a savings account at a bank and that bank allows cashless withdrawals.
In order to use the cashless facility, you would require to go through some easy steps. Those steps include selecting the withdrawal-OR-UPI option, entering the amount, scanning the QR code which would appear on the screen of the ATM machine via using apps such as Google pay, then rechecking the amount once again, entering the pin, and finally withdrawing the cash.
