The Reserve Bank of India (RBI) directed all banks and ATM operators on Thursday to make the ICCW (Interoperable Card-less Cash Withdrawal) cardless cash withdrawal capability available at all ATMs across all banks in India.
The Reserve Bank of India has urged the National Payments Corporation of India (NPCI) to help all banks and ATM networks integrate with the Unified Payments Interface (UPI).
"While UPI will be utilised for customer authorization in such transactions, settlement would be through the National Financial Switch (NFS)/ATM networks," the RBI said in a statement.
According to the RBI notice, cardless cash transactions would be handled free of charge.
The central bank stated that the withdrawal restrictions for ICCW transactions will be the same as the limitations for regular on-us / off-us ATM withdrawals.
"All other instructions relating to Harmonization of Turn Around Time (TAT) and consumer compensation for unsuccessful transactions should remain relevant," it continued.
"Only a few banks now provide cardless cash withdrawals using ATMs. It is presently recommended that UPI be used to make cardless withdrawals available across all bank and ATM networks.
The removal of the requirement for physical cards for such transactions will minimise fraud such as card skimming, card cloning, and other forms of fraud "RBI Governor Shaktikanta Das stated.
"On-demand cardless cash withdrawals from ATMs are an allowed mode of transaction given by a few banks around the nation (for their customers at their own ATMs). The lack of a card required to commence cash withdrawal transactions would aid in the prevention of frauds like as skimming, card cloning, and device manipulation."
"To encourage card-less cash withdrawals across all banks and ATM networks/operators, it is recommended that customers be able to authorise transactions through the Unified Payments Interface (UPI), with settlement taking place through ATM networks. NPCI, ATM networks, and banks would all get separate directives in the near future." on April 8, 2022, the RBI published a statement on Developmental and Regulatory Policies.
