NEWS

RBI has announced cardless cash withdrawals at ATMs across the country.

DETAILS

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• Once a user selects this option, they can input the amount to be withdrawn and a QR code will be generated on the ATM screen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

BENEFITS

• 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