Mumbai: RBI Monetary Policy Highlights: Reserve Bank of India (RBI) Governor Shaktikanta Das on Friday, kept key repo rate unchanged while raised the reverse repo rate by 40 bps to 3.75 amid inflation concerns due to rising crude. RBI has also announced the facility of cardless cash withdrawal via Unified Payments Interface UPI will be available at all ATMs in India.
Currently, cardless cash withdrawal at ATMs is available only to a few banks. RBI has now proposed to make cardless cash withdrawal facility available across all banks and ATMs networks through the UPI technology,” Das said during the MPC meeting.
He said that RBI’s focus is on enhancing the ease of transactions and discouraging the use of physical cards to prevent frauds like card cloning and skimming, etc.
Cardless Cash Withdrawal through UPI
Cardless cash withdrawal means that it doesn’t need bank customers to use their debit cards for withdrawing cash from the ATMs. This facility was adopted by few banks amid the Covid-19 pandemic when people were reluctant to go in public places and common utility centers like the ATMs.
Customers of ICICI Bank, Axis Bank, SBI and Bank of Baroda, among others, can already withdraw cash even without using their cards, via phones. The cardholder needs a mobile banking app to raise a request to withdraw cash at the ATMs when they do not carry their debit cards.
As per experts, this system will curb ATM frauds as it uses a mobile PIN to generate cash, The cardless cash withdrawal system uses the UPI facility to carry out the work. The service operates by the remitter creating an IMT (Instant Money Transfer), which allows it to transfer money using only the mobile number of the beneficiary.
More, banks will soon incorporate this facility of cardless cash withdrawal into their own ATMs. UPI is a technology developed by India which has become a key enabler in providing ease of transactions across the country.
