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RBI Plans To Introduce Card-less Cash Withdrawal Through UPI Across All ATMs In India

Withdrawal from ATMs to now become even simpler with direct withdrawal via UPI, rather than with debit cards

The Reserve Bank of India (RBI) intends to roll out interoperable card-less cash withdrawal (ICCW) services via UPI to all bank ATMs in India.

The Reserve Bank of India (RBI) plans to introduce interoperable card-less cash withdrawal (ICCW) facility using UPI across all bank ATMs in India. The withdrawal limits for ICCW transactions will be in-line with the limits for regular on-us/off-us ATM withdrawals. 

“All other instructions related to Harmonisation of Turn Around Time (TAT) and customer compensations for failed transaction shall continue to be applicable,” the RBI said in a notification. 

Can you withdraw from ATMs simply using your phone UPI?

At present, a few banks offer card-less cash withdrawal facility to their own customers at their own ATMs. However, after this interoperability is implemented, users will be able to withdraw cash from any bank ATM through the UPI facility.

“The card-less facility is currently operational, but it is confined to the bank’s own customers. With this move, the facility will now become interoperable, as it is done via UPI. Now, any customer of any bank can use a card-less facility across any ATM via UPI,” says Mandar Agashe, founder and managing director and chairman, Sarvatra Technologies. 

With the RBI’s latest directive, a user can now make card-less cash withdrawals at an ATM simply using his/her phone UPI. This service will soon get activated on the UPI app, too. As with payments to merchants, where one simply scans the QR code on the UPI app, enters the amount, and then enters the UPI PIN, one can follow a similar procedure to use ATM withdrawals through UPI following which the ATM will dispense cash. 

This move is likely to find favour with the young people, who use their mobile phones to make all digital payments using UPI instead of a debit card. Now, they could also withdraw cash using their mobile phone via UPI. 

“This is a convenient move for all the youngsters who don’t carry their debit cards. Since this is contactless, it will enhance convenience, and customers could expect a very different transaction experience going forward. With people preferring contactless payments nowadays, the ATM card-less withdrawals would be a big boost to contactless payments,” adds Agashe. 

RBI Governor Shaktikanta Das had announced this after the Monetary Policy Committee meeting on May 19, 2022.

Later, the RBI issued a notification in this regard the same day. It said: “All banks, ATM networks and WLAOs may provide the option of ICCW at their ATMs. 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. The on-us / off-us ICCW transactions shall be processed without levy of any charges other than those prescribed under the circular on Interchange Fee and Customer charges.” 
 

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