The Reserve Bank of India has said all banks, ATM networks and white label ATM operators may provide the option of interoperable cardless cash withdrawal at their ATMs, wrote Business Line.
“National Payments Corporation of India has been advised to facilitate Unified Payments Interface (UPI) integration with all banks and ATM networks,” the RBI said.
While UPI would be used for customer authorisation in such transactions, settlement would be through the National Financial Switch (NFS) or ATM networks, wrote Business Line.
The on-us / off-us interoperable cardless cash withdrawal transactions will be processed without levy of any charges other than those prescribed under the circular on interchange fee and customer fee.
Limits on withdrawal
The withdrawal limits for such transactions will be in line with that for regular ATM withdrawals. The RBI had, in its Statement on Developmental and Regulatory Policies in April this year, announced the introduction of interoperable cash withdrawal.
At present, the facility of card-less cash withdrawal through ATMs is limited only to a few banks. The move is expected to enhance customer convenience and improve safety and also give a further push to digital payments as UPI is the preferred payment mode for many individuals.
