RBI new announcement on the facility of card-less cash withdrawal through ATM

RBI new announcement

RBI (Reserve Bank of India) announced to allow all banks to start the facility of withdrawing cash from ATMs without a card (cardless). At present, only a few banks in the country have this facility. One of these banks is also SBI. RBI new announcement, you can withdraw cash even without a card from the ATM of the country’s largest government bank SBI.

Actually, from January 1, 2020, SBI started OTP-based transactions. Under this facility, first of all, an OTP will be sent to the SBI customer on the registered mobile number. Customers can withdraw cash from ATMs by entering this OTP. This OTP will be valid for a few minutes and a one-time transaction. In this way, you can withdraw 10 thousand rupees or more at a time. This means to say that customers will not need SBI’s debit card for this.

Many banks are offering this facility

Let us tell you that apart from SBI, major banks like ICICI Bank and HDFC Bank are offering this facility. Customers need to register on the respective bank’s app or website and make cardless cash withdrawals to use the facility. With the latest RBI announcement, cardless transactions can now be done at any ATM, irrespective of the customer’s bank.

Reserve Bank Governor Shaktikanta Das said that using this will make it easier to do transactions. Along with this, the facility of cardless cash withdrawal will also help in preventing frauds like card cloning. According to the central bank, separate instructions would be issued to National Payments Corporation of India (NPCI), ATM networks and banks shortly.

“In addition to enhancing the ease of transactions, the absence of the need for physical cards for such transactions would help prevent frauds such as card skimming, card cloning, etc,” the RBI governor added.

This system will curb ATM fraud as it uses a mobile PIN to generate cash, The cardless cash withdrawal system uses the UPI facility to carry out the work. The service operates by the remitter creating an IMT (Instant Money Transfer), which allows it to transfer money using only the mobile number of the beneficiary. Furthermore, RBI has taken steps to increase penetration of Bharat Bill Payment System (BBPS) payment collection for merchants.

Users of BBPS enjoy benefits such as a standardized bill payment experience, centralized customer grievance redressal mechanism, prescribed customer convenience fee, etc. As per RBI, BBPS has seen an increase in the volume of transactions as well as several onboarded billers.

The use of UPI enables customer verification while settling such transactions, Nitin Mathur, CEO of Tavaga Advisory Services, said after the announcement. “This is a step toward digitalizing banking and can significantly reduce fraudulent transactions even though the monthly limit allowed is a bit restrictive. The rise in digitalization and adoption of digital banking channels has exposed the system to several frauds and cybercrimes. It is thus important to ensure that these systems are not just efficient but also protected from emerging cyber security risks,” he said.

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www.rbi.org.in

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