As RBI monetary policy has said, it plans to allow interoperable cardless cash withdrawal across all bank ATMs in India. The Reserve Bank of India has resolved some significant problems with this interoperability in cardless cash withdrawal transactions. It will help reduce frauds like skimming, device tampering, and card cloning.
This cardless cash withdrawal is made with the help of the UPI (Unified Payment Interface) facility. He is one of the most significant announcements regarding the monetary policy.
There are very few and limited banks that allow cardless cash through ATMs, so interoperability is essential to look after this matter.
As of now, the cardless cash withdrawal from ATMs is only made from specific banks. The money can be withdrawn from its own ATM bank. Once interoperability is implemented, you can withdraw cash from any bank's ATM available in your area.
We don't need an ATM card physically to withdraw money. RBI Governor has clarified that without the physical ATM card, you will be able to withdraw money which will help you reduce frauds like skimming, device tampering, and card cloning.
UPI has been in demand due to its growing popularity. The ease of use and instant transfer are what make UPI more popular. The RBI has decided to make UPI a more versatile payment option so that it will gain its move all over the country. Until now, only fund transfer was possible via UPI. Today's announcement of interoperability for cardless withdrawal will enable ease of transaction and strengthen UPI as an all-rounder in the payment option.
ATM withdrawal will have a QR Code to scan. Soon all the banks will support this feature.
RBI has also said that if a withdrawal fails In the ATM due to a technical glitch and the money gets deducted from your account, you should inform your bank immediately. The amount will be credited between 7 working days.