: Card-less cash withdrawal facility at ATM soon: RBI #finance #StockMarketNEWS #Business Press Trust of India Mumbai In a bid to check fraud, the Reserve Bank on Friday decided to permit all

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Card-less cash withdrawal facility at ATM soon: RBI #finance #StockMarketNEWS #Business
Press Trust of India

Mumbai

In a bid to check fraud, the Reserve Bank on Friday decided to permit all banks to introduce card-less cash withdrawal through ATMs.

Currently, card-less cash withdrawal through ATMs is a permitted mode of transaction offered by a few banks in the country on an on-us basis (for their customers at their own ATMs).

Major lenders like SBI, ICICI Bank and HDFC Bank are offering this facility, especially through their card-less transaction enabled ATMs. To use the facility, a customer has to register on the app or website of the respective bank and initiate a card-less cash withdrawal transaction.

Following this, the customer gets a PIN which is required to be punched in the system for withdrawal.

With the latest RBI announcement, the card-less transaction can now be done at all ATMs irrespective of the bank.

“It is now proposed to make card-less cash withdrawal facility available across all banks and ATM networks using the UPI. In addition to enhancing ease of transactions, the absence of the need for physical card for such transactions would help prevent frauds such as card skimming, card cloning, etc,�? RBI Governor Shaktikanta Das said while the announcing the bi-monthly monetary policy review.

It is proposed to enable customer authorisation through the use of Unified Payments Interface (UPI) while settlement of such transactions would happen through ATM networks, a statement on Developmental and Regulatory Policies said.

Separate instructions would be issued to NPCI, ATM networks and banks shortly, it said.

With regard to Bharat Bill Payment System (BBPS), he said, it is an interoperable platform for bill payments, which has seen an increase in the volume of bill payments and billers over the years.

To further facilitate greater penetration of bill payments through BBPS and to encourage participation of a greater number of non-bank Bharat Bill Payment Operating Units in BBPS, it is proposed to reduce the net worth requirement of such entities from Rs 100 crore to Rs 25 crore.

The necessary amendment to regulations will be carried out shortly.

Users of BBPS enjoy benefits like standardised bill payment experience, centralised customer grievance redressal mechanism, prescribed customer convenience fee, etc.

BBPS is an interoperable platform for bill payments and the scope and coverage of BBPS extends to all categories of billers who raise recurring bills.

It is observed that there has not been a corresponding growth in the number of non-bank Bharat Bill Payment Operating Units (BBPOUs).

Observing that payment systems play a catalytic role in facilitating financial inclusion and promoting financial stability, the statement said, maintaining the safety and security of these systems is a key objective of RBI.