Withdraw Cash From ATM Without Using a Card Through UPI
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The Reserve Bank of India (RBI) Governor, Shaktikanta Das, stated that the RBI proposed to make cardless cash withdrawal facilities available at all ATM networks and banks through the Unified Payment Interface (UPI). The RBI governor made this proposal in his first monetary policy statement for FY 2022-23.

Cardless Cash Withdrawal

The cashless card withdrawal facility through ATMs is currently only available in a few banks. Under this facility, there is no requirement for the customers to use their credit or debit cards while withdrawing money from ATMs.

How Will Cash Withdrawals Through UPI Work?

While the RBI has not disclosed specific details on how the facility will work, a person knowing the matter stated that ATMs would soon show an option to withdraw cash using UPI.

The option to withdraw money using UPI might be as follows:

  • Select the option to withdraw cash using UPI in the ATM.
  • Users would have to add the withdrawal amount after selecting the UPI option. 
  • A QR code would be generated on the ATM.
  • Users would need to scan the QR code on their UPI app and enter their PIN.
  • The ATM would then dispense the cash.

Sonali Kulkarni, lead for financial services, Accenture in India, explained that UPI app-enabled ATM withdrawals could also occur.

The option to withdraw money using the UPI app might be as follows:

  • Users should enter the UPI ID and withdrawal amount in an ATM terminal.
  • Users would get a request on the UPI app on their cell phones. 
  • Users need to approve the transaction using the existing UPI app password.
  • After successful authentication, the ATM would dispense the cash. 

Banks Having a Cardless Cash Withdrawal Facility

The cardless cash withdrawal facility through ATMs is available in a few banks. The HDFC Bank, ICICI Bank, State Bank of India (SBI), Kotak Mahindra Bank, and Punjab National Bank (PNB) are the few banks that offer this facility in the wake of the COVID-19 pandemic.

However, RBI Governor, Shaktikanta Das, clarified that the issuance of debit cards would not stop due to the cardless cash withdrawal facility in ATMs since they have other uses beyond cash withdrawals. Customers can use the debit cards to enable overseas transactions and ATM cash withdrawals when the phone is switched off or in a location where mobile internet connectivity is poor.

For any clarifications/feedback on the topic, please contact the writer at mayashree.acharya@cleartax.in

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