Homefinance News

RBI asks banks to activate cardless cash withdrawal facility at ATMs

This article is more than 1 month old.

RBI asks banks to activate cardless cash withdrawal facility at ATMs

Mini

The central bank has asked all banks and ATM networks to provide the option of Interoperable Cardless Cash Withdrawal (ICCW) at their ATMs to contain frauds like skimming, card-cloning, and device tampering.

RBI asks banks to activate cardless cash withdrawal facility at ATMs
The Reserve Bank of India (RBI) on Thursday has asked all banks and ATM networks to provide the option of Interoperable Cardless Cash Withdrawal (ICCW) at their ATMs to contain frauds like skimming, card-cloning, and device tampering.
Accordingly, the National Payments Corporation of India (NPCI) has been advised to facilitate Unified Payments Interface (UPI) integration with all banks and ATM networks. Also, UPI would be used for customer authorisation in such transactions, but settlement would be through the National Financial Switch (NFS) or ATM networks, the central bank said in a statement.
"The on-us/off-us ICCW transactions shall be processed without levy of any charges other than those prescribed under the circular on Interchange Fee and Customer Charges," RBI said. Further, withdrawal limits for ICCW transactions shall be in-line with the limits for regular on-us/off-us ATM withdrawals.
Also Read:
Currently, cardless 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).
This comes after the central bank in April this year decided to permit all banks to introduce cardless cash withdrawals through ATMs. "It is now proposed to make cardless cash withdrawal facility available across all banks and ATM networks using the UPI.
In addition to enhancing the ease of transactions, the absence of the need for a physical card for such transactions would help prevent frauds such as card skimming, card cloning, etc," RBI Governor Shaktikanta Das said while announcing the bi-monthly monetary policy review last month.
Major lenders like SBI, ICICI Bank and HDFC Bank are offering this facility, especially through their cardless transaction-enabled ATMs. To use the facility, a customer has to register on the app or website of the respective bank and initiate a cardless cash withdrawal transaction.
Tags
next story

Market Movers

Currency

CompanyPriceChng%Chng