RBI provides cardless cash withdrawal facility through UPI to all banks

At present, the facility of cardless cash withdrawal from ATMs is limited to a few banks. According to the central bank, 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).

“You can now send money from a bank account to any person in India through cardless cash withdrawal with a valid mobile phone number. Adil Shetty, CEO, BankBazaar.com said that the beneficiary can withdraw cash from ATMs without using debit or ATM cards.

Announcing the first Monetary Policy Committee (MPC) statement for the financial year 2022-2023, RBI Governor Shaktikanta Das said that apart from enhancing the ease of transactions, the absence of the need for physical cards for such transactions would prevent frauds. will help prevent it. Like card skimming, card cloning etc.

According to the central bank, soon separate instructions will be issued to the National Payments Corporation of India (NPCI), ATM network and banks.

“Under the card-less cash withdrawal facility, a user can authenticate a transaction, and this is expected to add a layer of security and authentication to the transaction. It will also prevent frauds that occur due to card or card cloning,” said Devang Neralla, chief executive officer, NTT Data Payment Services India Ltd.

Experts believe that providing card-less cash withdrawal facility through UPI to all banks will usher in a new level of transacting in the banking system, adding to the bouquet of digital transaction services for the economy.

In addition, RBI has taken steps to increase the reach of Bharat Bill Payment System (BBPS) payment collection for merchants.

Users of BBPS enjoy benefits like standardized bill payment experience, centralized customer grievance redressal mechanism, fixed customer convenience fee, etc.

According to RBI, BBPS has seen an increase in the transaction volume as well as the number of onboard billers.

“RBI on Friday proposed to reduce the net worth criteria for non-banking operating units 100 crore 25 crores. This move will encourage a large number of new players to enter the BBPS ecosystem and thus enhance the BBPS network in the country.”