Soon cardless cash withdrawal from all banks and ATMs. How will you benefit from this?

“Now it is proposed to make cardless cash withdrawal The facility is available at all banks and ATM networks using UPI,” RBI Governor Shaktikanta Das said.

This system will prevent ATM fraud as it uses mobile PIN to generate cash.

“Apart from making digital payments seamless, one of the biggest contributions of UPI was the convenience of a standardized flow for secure authentication in bank accounts. This use case was integrated with not only banking apps but also third party apps like Google Pay and PhonePe too. There are a lot of use cases for UPI and this is what we are seeing with cardless withdrawals from ATMs. Although some banks have already enabled it, It is great to see that all banks will soon support this feature, which will further enhance the feature and improve security, said Sumit Gwalani, co-founder of Neobank Fi.

“The measures to allow interoperability in card-less withdrawals across banks will further encourage QR code-enabled payments. The decision to set up a robust governance structure for digital payments is a logical consequence of this move,” said Dinesh Khara, Chairman, SBI.

What is Cardless Cash Withdrawal?

The cardless cash withdrawal facility does not require the bank customers to use their debit or credit cards while withdrawing cash from ATMs.

• 24X7 cash withdrawal service anywhere in India
• Safe and secure way of cash withdrawal
• Get instant cash without any ATM card
• Under the cardless cash withdrawal facility, the customer need not use his/her debit or credit card while withdrawing cash from ATM.
• This system uses mobile PIN to generate cash.
• The cardless cash withdrawal system uses UPI facility to work.
• Cardless cash withdrawal facility can be used for self withdrawal of money.
• However, as of now many banks do not have this facility and there is a daily transaction limit.
• The cardholder mostly has to use the mobile banking app and request to withdraw cash from the ATM if they do not have a debit card.

Cardless cash withdrawal facility with banks

Cardholders of various banks including State Bank Of IndiaICICI Bank and Bank of Baroda, among others, can withdraw cash through their phones, even without their debit cards.

Here’s how the cardless cash withdrawal feature works:

• Savings account holders can initiate the facility of cardless cash withdrawal through mobile and internet banking.
• Some banks allow this facility through cardless cash withdrawal-enabled ATMs.
• The recipient has to visit a cardless cash withdrawal-enabled ATM, where the cash can be withdrawn after entering the code received on the mobile number.
• Such transactions are capped 5,000 or 10,000.
• There is also a limit on the maximum amount that can be transacted per account in a day.