Cashless Payment Network to Facilitate Cash Withdrawals
Jul 13, 2022
The Reserve Bank of India (RBI) is introducing cardless cash withdrawals at ATMs across its network, meaning customers will be able to withdraw money without a debit or credit card—and at banks other than their own—using their login details for the Unified Payments Interface (UPI), a popular real-time payment system.
The gradual rollout is designed to make cash withdrawals more convenient and secure, since it reduces opportunities for card-based fraud such as skimming and cloning. Customers with a UPI login and an associated app on their phone will be able to use them to make cash withdrawals without a card.
With this initiative, soon all users will have greater freedom to withdraw money at their own convenience, without being restricted by a physical ATM card.
Pranay Jhaveri, Managing Director for India & South Asia, Euronet Worldwide
The system will also circumvent the current inconvenience of certain bank customers being unable to withdraw cash from ATMs other than those operated by their bank. An example provided by The Hans India is that State Bank of India (SBI) customers can currently only use SBI cash machines. The new system will mean they can make withdrawals at any ATM that has enabled UPI-based withdrawals.
While some banks have enabled this UPI-linked cash withdrawal facility already, it's great to see that all banks would soon support this feature, which would further increase convenience and improve security
Sumit Gwalani, Co-founder of the Fi neobanking app
Last Updated: Jul 12, 2022