Published on: April 13, 2022
CARDLESS ATM WITHDRAWALS
RBI has announced cardless cash withdrawals at ATMs across the country.
HOW WILL THIS SYSTEM WORK
- Cardless cash withdrawals are to be authenticated via UPI
- ATMs are expected to show an option for withdrawing cash using UPI
- Once a user selects this option, they can input the amount to be withdrawn and a QR code will be generated on the ATM screen
- Users will then need to scan that code via their UPI app, and enter the password to withdraw cash from the ATM
- Enhance security of cash withdrawal transactions
- Prevent frauds like card skimming and card cloning
- Enable users to take cash from any and all ATMs
LIMITATIONS AND CHALLENGES
- Currently, ICICI Bank, Kotak Mahindra Bank, HDFC Bank and SBI allow cardless cash withdrawals.The cardless feature at these banks work with each specific bank’s app.
- Feature is cumbersome as it has certain withdrawal limits, and the transaction is charged
- In cardless withdrawal, the security vulnerability of a card is minimised, but the risk will soon transfer to a mobile-enabled feature