RBI Notifies Banks And ATMs To Provide Card-less Cash Withdrawal Facility

The apex bank proposed to allow interoperability in card-less cash withdrawal transactions at all banks and ATMs in its monetary policy review meeting held in April

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The Reserve Bank of India (RBI) on Thursday asked all banks to provide the option of Interoperable Card-less Cash Withdrawal (ICCW) at their ATMs.

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"All banks, ATM networks and White Label ATM Operators (WLAO) may provide the option of ICCW at their ATMs. NPCI has been advised to facilitate UPI integration with all banks and ATM networks. The on-us or 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," stated RBI in a notification issued on 19 May.

RBI had proposed to allow interoperability in card-less cash withdrawal transactions at all banks and ATMs in its monetary policy review meeting held in April 2022.

RBI governor, Shaktikanta Das, in a news report was quoted as saying, "To enhance the ease of transactions, the absence of the need of physical cards for such transactions would reduce fraudulent practices, such as card skimming, card cloning, etc."

According to the RBI's statement on Developmental and Regulatory Policies released on April 8, "To encourage card-less cash withdrawal facility across all banks and ATM networks, it is proposed to enable customer authorization through the use of UPI. Separate instructions would be issued to NPCI, ATMs and banks shortly."

Currently many banks offer the facility of card-less cash withdrawals at their own ATMs. According to HDFC guidelines, the card-less cash withdrawal limit is for a minimum of INR 100 per transaction and up to a maximum of INR 10,000 per day and INR 25,000 per month, whereas State Bank of India (SBI) customers can withdraw a minimum of INR 500 and maximum of INR 10,000 in a single transaction from SBI ATMs.

About card-less cash withdrawal facility

A card-less cash withdrawal facility enables a bank customer to withdraw money without debit or credit cards from ATMs. You can use net banking for cashless withdrawals. The system is presently available at various banks. This facility was implemented mainly during the COVID-19 pandemic.

How to make a card-less cash withdrawal from an ATM?

For this, you need to first download the respective bank's mobile app from play store or app store. Once you have downloaded, visit your nearest bank ATM and select the card-less cash withdrawal option on the ATM screen. Select your mobile number and enter the OTP or the transaction ID received on the registered mobile number. Enter the amount and withdraw the cash.