The Reserve Bank of India or RBI has recently announce that the cardless cash withdrawal system has propose to be made available in all bank branches and ATMs across India.
This will be made available to bank customers with the help of UPI or Unified Payments Interface, develop by the NPCI.
This was one of the main decisions made at the Monetary Policy Committee (MPC) meet of the RBI this time.
How does Cardless Cash Withdrawal System Work?
As the name tells, cardless cash withdrawal facility does not require a bank customer to use their debit or credit cards while withdrawing cash from ATMs.
The RBI has not mention how exactly the system will work through UPI but it has anticipate that bank ATMs will now have the option.
The user can scan a QR code and withdraw cash after entering their UPI pin.
How to Withdraw Cash Without Cards at Present?
As of now a few banks like ICICI Bank, Kotak Mahindra Bank, HDFC Bank and SBI allow their customers to withdraw cash without using a card.
For an SBI customer who want to withdraw more than Rs 10,000.
Follow These Steps :
- Download the SBI mobile banking app, YONO
- Visit your nearest bank ATM
- Select option to withdraw YONO cash
- After you enter the amount (Rs 10,000 or more) a screen will pop up prompting you to enter the OTP
- Cardholders will get the OTP which they have to enter in the ATM screen to complete the transaction
What’s next in the UPI pipeline?
It is estimate that in the next 3-5 years, UPI would be processing a billion transactions a day, and to enable that, a number of initiatives have introduce.
Chief among these is UPI’s AutoPay feature, which has already seen increase adoption owing to RBI’s disruptive guidelines on recurring mandates.
According to industry experts, the AutoPay feature will be crucial to increasing daily transactions on the platform.
The RBI has also announce UPI on feature phones without an Internet connection, which is expect to open up the payments system to more than 40 crore individuals who use such devices.
This will expand digital financial inclusion and add to the number of transactions made on the platform.
