Recently, the Reserve Bank of India said that it had rolled out an opportunity for cardless cash withdrawals at all ATMs across India, with the help of the Unified Payment Interface (UPI). UPI crossed 5 billion transactions in a month for the first time in March, last year.
The proposal was brought by the RBI Governor Shaktikanta Das. In his maiden monetary policy statement for the FY 2022-23, Shaktikanta Das said, “It is now proposed to make cardless cash withdrawal facility available across all banks and ATM networks using the UPI.”
Now, let’s learn what is cardless cash withdrawal,
First, in general terms, we can understand that the service will allow anyone to get money out from the ATM without using either a debit card or credit card. But how the cashless transaction will access? Here, the chief of financial services, Sonali Kulkarni said that soon we can view an option in certain ATMs to withdraw cash using UPI. But still, there is no full clearance on the final procedure to do so.
There are 2 processes to be followed according to the circulating rumours
Process 1 to access cardless ATM withdrawal using UPI:
- The customer should enter details of the request at the ATM terminal
- Then ATM will generate a QR code
- Now the customer should scan the QR code using the UPI app and approves the request.
- Then the customer can get cash from the ATM that he wants to withdraw.
Process 2 to access cardless ATM withdrawal using UPI:
- The user should enter his UPI ID and withdrawal amount at an ATM terminal
- He will receive a request on a UPI app
- He should approve the transaction using the existing UPI app password
- Cash will be dispensed at the ATM, after successful authentication.
“Banks are required to spend a lot on upgrading ATM software and creating other payments infrastructure in the wake of cardless ATM withdrawal service, and this may result in additional fees being charged on users”, said Sonali Kulkarni.