Mumbai, Apr 8: In a bid to check fraud, the Reserve Bank on Friday decided to permit all banks to introduce cardless cash withdrawal through ATMs.
Currently, cardless cash withdrawal through ATMs is a permitted mode of transaction offered by a few banks in the country on an on-us basis (for their customers at their own ATMs).
Major lenders like SBI, ICICI Bank and HDFC Bank are offering this facility, especially through their card-less transaction enabled ATMs. To use the facility, a customer has to register on the app or website of the respective bank and initiate a cardless cash withdrawal transaction.
Following this, the customer gets a PIN which is required to be punched into the system for withdrawal.
With the latest RBI announcement, the card-less transaction can now be done at all ATMs irrespective of the bank.
“It is now proposed to make card-less cash withdrawal facilities available across all banks and ATM networks using the UPI. In addition to enhancing ease of transactions, the absence of the need for a physical card for such transactions would help prevent frauds such as card skimming, card cloning, etc,” RBI Governor Shaktikanta Das said while announcing the bi-monthly monetary policy review.