Cardless cash withdrawal facility at ATM network of all banks soon: RBI
Highlight
- This facility is proposed to be made available through Unified Payments Interface
- Such transactions will be settled through ATM network
To check frauds, the Reserve Bank on Friday decided to allow all banks to introduce cardless cash withdrawal facility from ATMs. Currently, cardless cash withdrawal through ATMs is a permitted mode of transaction by some banks in the country on an on-us basis (for their customers at their own ATMs).
“It is now proposed to provide cardless cash withdrawal facility across all banks and ATM networks using UPI. Apart from enhancing the ease of transactions, it is also proposed to provide card-less cash withdrawal facility in the absence of the need of physical card for such transactions. Will help. Skimming, card cloning, etc,” RBI Governor Shaktikanta Das said while announcing the bi-monthly monetary policy review.
A statement on development and regulatory policies said it is proposed to enable customer authorization through the use of Unified Payments Interface (UPI), while settlement of such transactions would be done through the ATM network. Separate instructions will be issued to NPCI, ATM network and banks soon.
With regard to the Bharat Bill Payment System (BBPS), he said, it is an interoperable platform for bill payments, which has seen an increase in the volume of bill payments and billers over the years.
In order to further facilitate greater access to bill payments through BBPS and to encourage participation of more number of non-bank Bharat Bill Payment Operating Units in BBPS, the net worth requirement of such entities has been reduced from Rs.100 crores. It is proposed to reduce Rs. 25 crores.
Necessary amendments to the rules will be made soon.
Users of BBPS enjoy benefits like standardized bill payment experience, centralized customer grievance redressal mechanism, fixed customer convenience fee, etc. BBPS is an interoperable platform for bill payments and the scope and coverage of BBPS extends to all categories of billers who raise recurring bills.
It has been observed that the number of Non-Bank Bharat Bill Payment Operating Units (BBPOUs) has not shown the same increase.
Noting that payment systems play a catalytic role in facilitating financial inclusion and promoting financial stability, the statement said, maintaining the safety and security of these systems is a key objective of the RBI.
With more and more adoption of digital payment modes, it is important to ensure that the payment system infrastructure is not only efficient and effective, but also resilient to traditional and emerging risks, especially those related to cyber security.
It is proposed to issue guidelines on Cyber Resilience and Payment Security Controls for Payment System Operators to ensure that our payment system remains resilient to traditional and emerging risks, especially relating to cyber security. “
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