The Reserve Bank of India's mandate on Thursday, directing all banks and ATM networks to provide the option of Interoperable Cardless Cash Withdrawal (ICCW), and that the National Payments Corporation of India (NPCI) support UPI integration with all banks and ATM networks, is a step towards combating frauds like skimming, card cloning, and device tempering.
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Although cardless cash withdrawal facilities have been available many years with banks such as HDFC Bank, ICICI Bank, SBI, and others, it was for only the bank's customers and was not interoperable.
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The procedure will become more fluid and may involve fewer stages with the assistance of UPI.
While UPI will be employed for customer authorisation, such transactions would be settled through the National Financial Switch (NFS)/ATM networks.
“To encourage cardless cash withdrawal facility across all banks and all ATM networks / operators, it is proposed to enable customer authorisation through the use of Unified Payments Interface (UPI) while settlement of such transactions would happen through the ATM networks. Separate instructions would be issued to NPCI, ATM networks and banks shortly,” the central bank had said in the circular.
What about withdrawal limit?
The withdrawal limit will remain unchanged. With or without a card, your account's withdrawal limit will stay the same, ranging between Rs 10,000 and Rs 50,000 per day.
“Withdrawal limits for ICCW transactions shall be in-line with the limits for regular on-us/off-us ATM withdrawals,” the circular read.
What about fees?
There is no extra charge for cardless withdrawals. You will continue to pay the same ATM transaction charge rate—that is, once you have exhausted the number of free withdrawals permitted by your bank, you will pay the regular price of Rs. 21 + taxes as before.
“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,” the circular said.
When will this feature be available?
The Reserve Bank of India has recommended all banks, ATM networks, and white-label ATM operators to make this capability available to clients via UPI, although no timetable has been set.
(Edited by : Anand Singha)
First Published: May 20, 2022 4:59 PM IST
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