RBI Introduces Card-Less Cash Withdrawal Facility Using UPI Across All ATMs

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, Governor Das said.

Astha Oriel

Updated on: 8 April 2022 2:17 pm

File Photo.

Unveiling the first RBI monetary policy meeting outcome for the current fiscal, the Reserve Bank of India (RBI) Governor Shaktikanta Das on Friday said that the apex bank is planning to introduce the cardless cash withdrawal facility using UPI across all bank ATMs across the country.

Citing that such facility would prevent frauds, skimming, and card cloning, Governor Das said, “At present, the facility of card-less cash withdrawal through ATMs is limited only to a few banks. It is now proposed to make card-less 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,” he added.

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Any customer can withdraw money via the cardless cash withdrawal facility. Notably, the customers can withdraw cash instantly without ATM or debit card. After selecting the cardless cash withdrawal option in any ATM, the customers will have to fill out the following details—generated OTP on the registered mobile number, the beneficiary mobile number, nine-digit order ID, and the amount of transaction.

Governor Das said, “RBI will engage in gradual, multi-year withdrawal of Rs 8.5 lakh crore excess liquidity in the banking system.”

Apart from this, in order to facilitate the bill payments on a large scale via the Bharat Bill Payment system, RBI has proposed rationalization of net-worth requirement in operating units from Rs 100 crore to Rs 25 crore.

RBI Keeps Key Rates Unchanged

Maintaining its accommodative stance, the apex bank has kept all key rates unchanged and at a record low for the 11th time since March 2020. The repo rate continues to be at 4 per cent, whereas the reverse repo rate continues to be at 3.35 per cent. The marginal standing facility rate and bank rate continue to be at 4.25 per cent.

However, the RBI has slashed the GDP growth to 7.2 per cent for the current fiscal. The RBI has pegged inflation at 5.7 per cent for FY23 with Q1 inflation at 6.3 per cent, Q2 at 5 per cent, Q3 at 5.4 per cent, and Q4 at 5.1 per cent.