RBI, on Friday, announced a new move that will encourage to move to safer methods to withdraw cash. This new method will not involve the usage of a credit or debit card. This is a multi-pronged approach by the central bank. Firstly, it will reduce the chances of card skimming as well as the convenience of making withdrawals using the smartphone.
RBI Deputy Governor Rabi Sankar said in a statement, “We’re introducing card-less cash withdrawals to evade card skimming; the proposal is to begin authentication via UPI. It can be used for withdrawal from any bank’s ATM, third-party ATM, or White Label ATM. We’re working out its system changes & instructions.”
The use of credit and debit cards won’t change much despite the introduction of cashless withdrawal. Users will still be able to withdraw money using their cards. They will continue to be functional in restaurants, and shops for payments. Due to the lack of a UPI ecosystem abroad, debit cards and credit cards will be relevant in making payments outside the country.
RBI Governor Shaktikanta Das said, “We won’t stop issuing credit/debit cards, as they have many other utilities; they’re not just used for cash withdrawals, they can be utilized while at a restaurant, shop, or for payments in a foreign country. So credit & debit cards will be continued.”
Benefits of new Cardless Cash Withdrawl
Convenience: Cardless cash withdrawal will reduce dependence on carrying debit or credit cards. Al you will need is the smartphone with the registered mobile number and a UPI ID.
Safety: RBI has confirmed that card skimming risks will reduce with the implementation of this new plan. Users won’t have to worry about their ATM cards getting skimmed and cloned. Earlier, banks moved to chip-based ATM cards in order to provide safety from skimming.
How will the new method work
-To withdraw cash without a card, you will need a UPI ID, The transactions will be authenticated via UPI.
-Once you enter the ATM, you will have to choose the “Cashless Withdrawal” option on the screen.
-The ATM screen will then show a QR code that needs to be scanned within a UPI app.
-Then the user will enter the UPI pin and the cash will pop out of the ATM machine
Note: This method of cardless cash withdrawal is already available with a few banks like ICICI and SBI. However, it will be rolled out to other banks as well and it will function with third-party ATMs too.
You must not share PIN and OTP with anyone, as it can be used to fraudulently withdraw money from bank accounts. If you think your money is safe as you have not shared the OTP and PIN, you are wrong. Fraudsters can actually steal money from your bank account, even without you providing OTP and PIN.22-Jan-2020
You generally can use your debit card to withdraw money at an ATM owned by another bank, or at an ATM owned by a third-party provider in a location such as a convenience store or restaurant. Both your bank and the owner of the ATM could charge you a fee for the transaction by deducting it from your bank balance.
1. Firstly, request for cardless cash withdrawal from the mobile app. To do so, go to the ‘services’ option in the banking app and click on ‘cardless cash withdrawal’ for self. You will then be asked to enter the amount, your 4-digit temporary PIN and select the account number from which the amount is to be debited.12-Mar-2020
Currently, a few banks like ICICI Bank, Kotak Mahindra Bank, HDFC Bank and SBI allow their customers to withdraw cash without using a card. The facility can be initiated by customers of these banks through mobile and internet banking. Some banks also allow this facility at ATMs where it is activated by default.1 day ago
Card is used yo withdraw cash without going to a bank is a facility provided by the bank. Anytime money (ATM) cards, generally known as debit cards are used for withdrawal of cash from the designated ATM machine placed at different locations. Explanation: In accounting, withdrawing cash through ATM has a contra effect.28-Mar-2021
The Reserve Bank of India, on Friday, announced a new move that will encourage to move to safer methods to withdraw cash. This new method will not involve the usage of a credit or debit card. This is a multi-pronged approach by the central bank. Firstly, it will reduce the