Reserve Bank of India (RBI) on Thursday directed that all banks and ATM operators to provide option of card-less cash facility, known as ICCW (Interoperable Card-less Cash Withdrawal) at their ATMs.
For this, the central bank added that the government's payment system National Payments Corporation of India (NPCI) has been advised to facilitate Unified Payments Interface (UPI) integration with all banks and ATM networks.
While UPI would be used for customer authorisation in such transactions, settlement would be through the National Financial Switch (NFS)/ATM networks, RBI noted.
Moreover, the card-less cash transactions shall be processed without levy of any charges, as per the RBI directive.
Further, withdrawal limits for ICCW transactions shall be in-line with the limits for regular on-us / off-us ATM withdrawals, it added.
"All other instructions related to Harmonisation of Turn Around Time (TAT) and customer compensation for failed transactions shall continue to be applicable."
What is the cardless cash withdrawal facility?
A cardless cash withdrawal facility does not require a bank customer to use their debit or credit cards while withdrawing cash from ATMs. The system is presently available at various banks and was introduced in the wake of the Covid-19 pandemic when several people were reluctant to go to the ATMs.
This system will curb ATM frauds as it uses mobile PIN to generate cash, The cardless cash withdrawal system uses the UPI facility to carry out the work.
The cardless cash withdrawal facility can be used for self-withdrawal of money. However, not many banks have this facility yet and there is a daily transaction limit. This ranges from Rs 10,000 to Rs 20,000, as per the facilities offered by the particular bank.
A few banks presently also charge an additional transaction charge from its customers. With the RBI’s new announcement, more banks are expected to join in to provide the service to its cardholders.
Cardholders of various banks including SBI, ICICI Bank, Axis Bank and Bank of Baroda, among others, can withdraw cash even without their debit cards, through their phones. The cardholder mostly has to use a mobile banking app and raise a request to withdraw cash at the ATMs if they do not possess their debit cards.
Copyright©2022 Living Media India Limited. For reprint rights: Syndications Today