Now you can withdraw money from ATM without card, facility will start soon
The Reserve Bank (RBI) is continuously taking steps to make banking services easier. In this episode of giving better facilities to the customers, now the facility of withdrawing money from ATMs of all banks without debit card or credit card will start. Now the day is not far when the need to keep a card with you to withdraw money from ATM will end. Along with this, debit and credit card fraud will also be stopped through cloning. However, some banks are currently offering the facility of cardless cash withdrawal, but customers can do so only from their bank’s ATM. This facility is not available when withdrawing money from ATMs of other banks. Also, not all bank ATMs have this facility. But now it will happen soon.
RBI circular
The Reserve Bank has issued a circular on May 19, 2022, asking all banks to start this facility soon. RBI has asked in the circular that all banks, ATM networks and White Label ATM Operators (WLAOs) should provide the facility of Intraoperable Cardless Cash Withdrawal (ICCW) at their ATMs. Also, NPCI has been advised to integrate Unified Payments Interface (UPI) with all banks and ATM networks. In the process of cardless cash withdrawal, UPI will be used to authenticate the identity of the customers (customer authorization) while the settlement will be done through National Financial Switch/ATM network.
How much cash can you withdraw
The Reserve Bank has said that no separate charge will be levied on such transactions. No charges will be levied other than the interchange fee and customer fee already prescribed. Also, the withdrawal limit for cardless transactions will be the same as for regular ATM withdrawal. This means that at present the limit of cash withdrawal from the card will remain the same in cardless transactions as well. In case of failure of the transaction, the rule of compensation will continue as before.
How much is the charge
At present, customers can do 5 transactions at their bank’s ATM for free. Whereas ATMs of other banks can do 3 free transactions in metro cities and 5 free transactions in non-metro cities. For transactions beyond the free limit, banks charge a fee of Rs 21 per transaction. The same rule will be applicable in cardless transactions as well.
The central bank, in its policy review meeting of April 2022, had proposed to introduce cardless cash withdrawal facility through UPI from ATMs of all banks. This will not only help in preventing frauds from debit card or credit card but will also get rid of the hassle of carrying the card along with you.
