RBI asks for option of interoperable card-less cash withdrawal at ATMs

NPCI advised to facilitate Unified Payments Interface (UPI) integration with all banks and ATM networks.

The Reserve Bank of India (RBI) on Thursday asked banks, ATM networks, white label ATM operators, and the National Payments Corporation of India (NPCI) to provide the option of interoperable card-less cash withdrawal at cash machines.

The RBI, after its April monetary policy committee meeting, announced the introduction of interoperable card-less cash withdrawal facility across all banks and all ATM networks.

In the circular issued on Thursday, the central bank said the NPCI has been advised to facilitate Unified Payments Interface (UPI) integration with all banks and ATM networks.

Essentially, UPI would be used for customer authorisation in such transactions, while settlement would be through the National Financial Switch (NFS) / ATM networks.

“The on-us / off-us interoperable card-less cash withdrawal transactions shall be processed without levy of any charges other than those prescribed under the circular on interchange fee and customer charges”, the RBI said.

The withdrawal limits for the card-less cash withdrawals will be in-line with the limits for regular on-us / off-us ATM withdrawals, the central bank said.

RBI governor Shaktikanta Das has said the option of card-less cash withdrawal will enhance the ease of transactions, and in the absence of the need for physical cards, it would help prevent frauds such as card skimming and card cloning, among others.

Experts have said that while this will increase convenience for customers and reduce frauds, it may, however, have an impact on the debit cards.