All Bank Cardless Cash Withdrawal | Cardless cash withdrawal through UPI will be available at all bank ATMs
Cardless Cash Withdrawal Facility What is?
As the name suggests, cardless cash withdrawal facility does not require the bank customer to use his debit or credit card while withdrawing cash from the ATM. The system is currently available across various banks and was introduced in the wake of the Covid-19 pandemic when many people were reluctant to visit ATMs.
Cardholders of various banks including SBI, ICICI Bank, Axis Bank and Bank of Baroda can withdraw cash through their phones even without their debit cards. The cardholder mostly has to use mobile banking apps and request to withdraw cash from ATMs if they do not have a debit card.
According to experts, this system will curb ATM frauds as it uses mobile PIN to generate cash, cardless cash withdrawal system uses UPI facility to work. The service operates by making IMT (Instant Money Transfer) by the remitter, which allows it to transfer money using only the mobile number of the beneficiary.
Cardless cash withdrawal facility can be used to withdraw money on your own. However, as of now many banks do not have this facility and there is a daily transaction limit. It ranges from Rs 10,000 to Rs 25,000 depending on the facilities offered by the particular bank. Some banks currently also charge additional transaction fees from their customers. With the new announcement from RBI, more banks are expected to join hands to provide the service to their cardholders.
What are the benefits of Bank Cardless Cash withdrawal?
Cardless cash withdrawal facility does not require bank customers to use their debit or credit cards while withdrawing cash from ATMs.
- 24X7 service to withdraw cash, anywhere in India
- Safe way to withdraw cash
- Get instant cash without any ATM card
- Under the cardless cash withdrawal facility, the customer does not need to use his debit or credit card while withdrawing cash from the ATM.
- This system uses mobile PIN to withdraw cash.
- The cardless cash withdrawal system uses the UPI facility to function.
- Cardless cash withdrawal facility can be used for self withdrawal of money.
- However, as of now many banks do not have this facility and there is a daily transaction limit.
- The cardholder mostly has to use mobile banking apps and request to withdraw cash from ATMs if they do not have a debit card.
How does Cardless Cash withdrawal work?
Here’s how bank cardless cash withdrawal works:
- Savings account holders can initiate cardless cash withdrawal facility through mobile and internet banking.
- Some banks allow this facility through cardless cash withdrawal-enabled ATMs.
- The recipient will have to visit cardless cash withdrawal-enabled ATMs, where cash can be withdrawn after entering the code received on the mobile number.
- The limit for such transactions is ₹5,000 or ₹10,000.
- There is also a limit on the maximum amount that can be transacted per account in a day.
Cardless cash withdrawal through UPI will be available at all bank ATMs
The Reserve Bank of India, or RBI, Governor Shaktikanta Das announced on Friday, April 8, that the RBI proposes to make cardless cash withdrawal facility available at all ATMs of all banks in India. The RBI governor was announcing the decisions taken in the three-day Monetary Policy Committee meeting. Das said that it is proposed to make this facility available through Unified Payments Interface or UPI.
“At present the facility of cardless cash withdrawal through ATMs is limited to only a few banks. It is now proposed to make cardless cash withdrawal facility available across all banks and ATM networks using UPI.
“Apart from increasing the ease of transactions, not requiring physical cards for such transactions will help in preventing frauds like card skimming, card cloning etc,” the RBI governor said.
Nitin Mathur, CEO of Tawaga Advisory Services, said after the announcement that the use of UPI enables customer verification while settling such transactions. “This is a step towards digitizing banking and can significantly reduce fraudulent transactions, even though the monthly limit allowed is a bit restrictive. The increase in digitization and adoption of digital banking channels has exposed the system to several frauds and cyber crimes. Hence it is important to ensure that these systems are not only efficient but also secure from emerging cyber security risks.”
All Bank Cardless Cash withdrawal List
FAQ’s Bank Cardless Cash withdrawal
Users need to install the apps of their respective banks and first select the cardless cash withdrawal option on the app, followed by adding beneficiary details and withdrawal amount. After verifying the user’s mobile number, the bank will send an OTP and nine digit Order ID to the beneficiary’s phone.