The Reserve Bank of India (RBI) has come up with a proposal to make cardless withdrawals across all banks from Automated Teller Machine (ATM). The network will be connected using the Unified Payments Interface (UPI) and encourage customers to go cardless. The RBI governor explained, ” At present, the cardless cash withdrawal facility through ATMs is limited only to a few banks. It is now proposed to make cardless cash withdrawal facility available across all banks and ATM networks using the UPI.”
Governor Shaktikanta Das also emphasized the issue of frequent card related frauds and explained how the new technology would help avoid such crimes. He said, ” In addition to enhancing the ease of transaction, the absence of the need for physical cards for such transactions would prevent frauds such as card skimming, card cloning, etc.” This facility was first offered during the peak of the COVID-19 pandemic as people were avoiding public places.
How will the cardless cash withdrawal work?
The cardless cash withdrawal technology is pretty straightforward. The bank customer will not require a credit card or debit card to withdraw cash from the ATMs. The customer needs to have the banking app available for the transaction to proceed. After raising a request in the app, the individual can continue with the process as instructed in the app.
As mentioned above, the network will be connected through UPI, and the user would need to scan the code on their UPI app onto their phone and put in the withdrawal request. Currently, there is a transaction limit of Rs 10,000 to 20,000 on cardless cash withdrawals depending on the bank.
How many banks are providing this facility?
A few entities provide its customer with these facilities, like ICICI Bank, HDFC Bank, Kotak Mahindra Bank, and State Bank of India (SBI).
How can a user avail of this facility in their banks?
If you are a customer of ICICI Bank, this is how you need to proceed:
- Step-1 You need to download the ICICI Bank iMobile app.
- Step-2 Go to services and tap on the Cardless Cash withdrawal option.
- Step-3 Now, you must enter the 4-digit PIN and select the account number from which money needs to be debited.
- Step 4 The account details will show up on your screen, and you need to confirm and then tap on submit.
- Step 5 You will receive a unique 6-digit code via SMS on your registered mobile number. This 6 digit code will only be valid for 6 hours and is essential to complete the process.
- Step 6 The customer should ensure that the ICICI Bank ATM they visit provides this Cardless facility. To make it easier, according to the ICICI Bank website, the customer can send an SMS ATMCC with their Pincode to 9222208888 to locate the ATM that provides this facility.
ICICI Bank Customers can withdraw up to ₹ 20,000 daily per transaction.
If you are a customer of the State Bank of India, this is how you need to proceed.
- Step-1 Download the official YONO SBI app.
- Step- 2 Log in to the App and Click on the YONO Cash option.
- Step-3 Now, Tap on the ATM section and enter the amount you want to withdraw.
- Step-4 Now, the bank will send you a YONO cash transaction number on your registered mobile number.
- Step-5 The customer needs to use this number to step a PIN for themselves. The PIN will be required to initiate the cardless transaction.
- Step- 6 Now, visit the SBI ATM and tap on the YONO Cash on the ATM screen to proceed.
- Step-7 Use the transaction number provided and Complete the authentication process.
- Step 8 Collect Cash
Presently, SBI Customers can only withdraw ₹ 10,000 in a single transaction.